If the US government is successful in bailing out the banks, stock brokers, big manufacturers and insurance companies, the economy will be called a ďrecessionĒ. If their printing of excessive paper money devalues the dollar, and the economy collapses, it will be called a ďdepressionĒ. It doesnít matter who wins the upcoming election because both political parties are owned and controlled by the Big Boys, (Also known as the Mafia) who have cleverly covered their illegal activities under the cloak of legitimate business that own and control all the major industries and services around the world.
How do I know when we are in a depression? When my standard of living decreases significantly with higher taxes, inflated gas prices, higher interest rates, cost of education and with more and more factories moving overseas to compete in the world market.
The point is that taxes for the middle class must be raised by whoever is elected to pay for the bail out. The super rich donít pay their fair share of taxes anyway because they have all the loopholes legislated in their favor.
Most overseas countries donít want any more US dollars because the dollar has been devaluing. China lost $300,000,000,000 in equity value by holding $3 Trillion when it devalued over 10% last year and will continue to lose equity if they donít dump all their US dollar reserves. However, when they went to spend it, US Congress prevents them from buying US assets even though they were the high bidder. They used some of the US dollars to buy from other countries, but the other countries also donít want US dollars and want to be paid in gold. So when every country sees what is happening to the US and want to rid their US dollars, the depreciating value of the dollar will take more dollars to buy the one commodity that remains constant worldwide Ö.GOLD.
This is a political ploy created to benefit a significant few. The US dollar has never been worth less on the international currency markets. And with the US government debt growing with the bailouts and increased taxes, its value will continue to decrease.
Some large stock brokers are not recommending buying gold to their clients but are quietly buying gold for themselves. I wonder why. Are they trying to buy gold at the lowest possible prices before the prices go up?
I look at gold as the world standard and it will take many more US dollars to buy gold so anyone buying gold today stand to preserve their asset value as the US dollar continues to devalue. Gold isnít going up; itís the US dollar going down.
Graph drawn as of Dec. 2007
Gold went to over $1000 and dropped when the US announced the bailout. I predict t that itís ready to go up again to above $1200 by the end of this year.
By Leonard Rivero. email: firstname.lastname@example.org