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The United States has exceeded the federal debt limit. The Government now has to shuffle money around. Important investments have been halted until mutual agreement over the debt limit can be resolved. The US. has until August 2nd to come up with a mutual plan to raise the debt limit. Everyone is in agreement that the debt limit must be raised. Only problem is so far the President, Republicans and Democrats can’t see eye to eye on the solution. Let’s hope they find one fast. The head of the Federal Reserve Bank, Ben Bernanke, and the US Secretary of the Treasury, Timothy Geithner, have warned that without a debt limit extension an extremely serious large financial crisis will be expected soon. There are only a couple months to go at that time the US would be forced into defaulting on their immense national and foreign debts. The outcome would severely cripple the US dollar and the US economy while many other foreign economies also will feel the pain. Sadly, even if the debt limit is raised the economy will not be out of hot water. As the US continues spending more money than they bring in and the Federal Reserve keeps on printing more money (QE2) while keeping interest rates ultra low, these actions are seriously causing more inflation and devaluation of the dollar. Cutting the budget seriously is expected but whatever congress and the president finally agree on will still not be enough to reverse course and get us out of the finical disaster that the US government and the Federal Reserve are responsible for creating. If the current path to recovery does not change course soon this financial fiasco, the United States economy and the value of the dollar will continue to decline. The U.S. Congress still might have time to deal with their debt. While there is a large amount of political juggling, a large-scale crisis could delay the inevitable if the correct agreements are made. Many people believe the United States should default as soon as possible, because otherwise all they are doing is making the inevitable debt crisis far worse. Currently were burning the candle at both ends, one side towards deflation which are the debt limit and uncontrolled spending. On the other end we are staring at hyperinflation due to the Fed Printing money out of thin air QE2, interest rates at near zero and many believe more QE3, QE4, QE5 …until the implosion of the dollar finally arrives. Bottom line deflation would be extremely serious to the US. and the world’s economies. However hyperinflation would be devastating with much longer lasting consequences. To really fix the current problem hard choices need to be implemented. Stop QE2 printing money now, raise Interest rates now and peg the dollar to gold once again. This would surely stop the roller coaster ride the economy is in from free falling. No one has heard any of these options on any bargaining table but they should be. Enough is Enough! Everyone has a chance to prepare finically for the massive upcoming economic event. Protect your wealth against deflation, inflation or hyperinflation by purchasing physical, gold and silver. Throughout history gold and silver have always retained their value especially at times when fiat currencies begin to erode and become devalued. Over time history always repeats itself. For information, news, articles and videos to invest in gold and silver and where the best places are to buy it. You will also find information for preparing and protecting you, your family and your assets from the pending economic crises and destruction of the US. Dollar. Author Tom Genot provides information and resources helpful to everyone. Insure your prepared beforehand, check us out at coinbullion.net
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debt limit, federal reserve, qe2, hyperinflation, deflation,
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