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Wednesday, March 3, 2010

GDP Growth vs. Debt Growth

The following is from the Prudent Investor. It tells you a lot about how the fiat monetary system is out of control and how there is a disconnect between GDP growth and debt growth. With this much monetary creation and incomes not keeping up with debt we will face huge headwinds of growth and improvement in living standards (on the contrary there will be huge decreases). The system is bankrupt and it is all apparent out there. It will continue exploding until even the most complacent and ignorant or outright liars cannot deny there is a huge problem. At that point it will be too late to do anything - if it already is not. Simultaneously, gold will be at record highs even if there is a huge deflation overall going on as money will lose its meaning as pieces of paper Weimar style. Tangible assets other than gold will of course fare better than paper assets. Take delivery of your tangibles. Do not hold paper claims. They are meaningless.

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