OT: Why the Debt Situation is Worse Than You Even Imagined

Why the Debt Situation is Worse Than You Even Imagined By Porter Stansberry with Braden Copeland Wednesday, December 15, 2010 There are few things about which history is unanimous. Land wars in Asia, for example? always a bad idea.

Paper money falls into this category. Paper money always fails and wipes out the people who depend on it.

Or as our friend Rick Rule likes to say, paper money's track record is unblemished by success. The return of paper money to its intrinsic value (nothing) is guaranteed. All we need is time (though politics certainly help move things along).

We would not argue that organizing a system of sound money based on paper receipts is impossible. We would merely point out that keeping such systems sound and reliable has proven elusive to this point in human history.

Paper money is like many other types of idealized virtue humans cannot attain. It's simply beyond human nature to avoid perdition. Sin, as they say, is part of man.

Every government that has used paper money has succumbed to a fatal level of borrowing. Rather than a restructuring of these debts, paper money systems allow for the rapid expansion of the monetary base to facilitate paying off debts in devalued money.

_This is no different than stealing._ And yet? that is what happens every time, resulting in a massive crisis and a breakdown of social norms.

It normally happens faster in democracies, where no strong interest group votes for living within the country's means and repaying its creditors in sound money. No, people vote for more spending and more debt. And they always expect someone else to pay. Case in point? Greece.

Researching problems in the Greek economy is like reading a financial comic book. All the players are clowns.

For example, the national railroad has annual revenues of ?100 million? against a wage bill of ?400 million and another ?300 million in expenses. The Ministry of Agriculture hired 270 people to digitize photographs of Greek public lands? with one digital camera.

In 2001, the Greek government borrowed $1 billion from Goldman Sachs to help balance the budget. The deal relinquished future receipts from the national lottery, national highway tolls, airport landing fees, and even funds promised to Greece in the future from the European Union.

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Reply to
Robert Baer
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So, why was gold down today -1.09% ??

If you don't like paper money, just buy gold (symbol GLD). Here's a track record:

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-Bill

Reply to
Bill Bowden

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Have you actually posted on topic even once in the last month?

If you have managed that, have you totted up the number of on topic posts and compared them to the number of times you've cut and pasted your political postings from some blog and imposed them on this _electronic_ _design_ newsgroup?

What's the ratio?

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Tim Wescott
Wescott Design Services
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Reply to
Tim Wescott

Why look at it at 5 years span only? How about the spike around 1980? Looks just like the one we have now, right?

M
Reply to
TheM

Look up Porter Stansberry on the internet. Investment Fraud.

Dan

Reply to
dcaster

Speaking of Politics how about a joke instead?

The Pope went on vacation for a few days in the rugged mountains of Alaska. He was cruising along the campground in the Pope Mobile when he heard a frantic commotion just at the edge of the woods. He spotted a helpless Democrat wearing shorts, sandals, a 'Vote for Obama' hat and a 'Save the Trees' shirt The man was screaming and struggling frantically, thrashing all about, and trying to free himself from the grasp of a 10-foot grizzly bear.

As the Pope watched in horror, a group of Republican loggers wearing 'Go Sarah' shirts came racing up. One quickly fired a 44 magnum slug right into the bear's chest. The two other men pulled the semiconscious Democrat from the bear's grasp. Then using baseball bats, the three loggers finished off the bear. Two of the men dragged the dead grizzly onto the bed of their pickup truck while the other tenderly placed the injured Democrat in the back seat.

As they began to leave, the Pope summoned all of the men over to him. "I give you my blessing for your brave actions!" he proudly proclaimed.

"I have heard there was bitter hatred between Republican loggers and Democratic environmental activists, but now I've seen with my own eyes that this is not true." As the Pope drove off, one logger asked his buddies, "Who the heck was that guy?" "Dude, that was the Pope," another replied. "He's in direct contact with Heaven and has access to all wisdom." "Well," the logger said, "he may have access to all wisdom, but he doesn't know squat about bear hunting!

By the way, is the bait still alive or do we need to go back to Massachusetts and get another one?"

Reply to
JW

_MASK_i?a63jfAD$z_ snipped-for-privacy@v17g2000prc.googlegroups.com...

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The spike in 1980 would put gold at 4000 today.

-Bill

Reply to
Bill Bowden

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GLD was one of Stansberrys recommendations *ages* ago. Also real gold.

Reply to
Robert Baer

I have posted queries and comments regarding SPICE at least 3 times recently; i do not count my postings; do you count yours?

Reply to
Robert Baer

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Yup! Porter mentioned that a number of times in the past.

Reply to
Robert Baer

In real estate, they say "location, location, location". For go;d,it is "timing, timing, timing". A number of analysts are predicting that value for gold and so are pushing it, squawking "buy, buy, buy".

Reply to
Robert Baer

Timing is great for the salesmen. They can always show you the five years you should have bought gold (and imply the next will be no different). BTW, if you hadn't noticed, real estate (and all such purchases for investment) is all timing, timing, timing.

No, you have cause and effect backwards. The "analysts" are predicting the increase in gold prices because they're pushing it.

Reply to
krw

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