What is your take on Dow drop and the subsequent push down on PM’s

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  • Mon, Sep 26, 2011 - 01:58pm

    #11

    frobn

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    dshields wrote:The main

[quote=dshields]

The main event will be when everyone stops obsessing on Europe and starts looking at America.  We are in terrible shape – it is scary bad.  We have way to much debt.  The class of dependance has grown to half the country.  It is a disaster.  There is no way we can pay back what we owe now and there is no way we are going to be able to pay for what we have promised people in the future.  There is simply no way to do it and that is all there is to it – period.  We are borrowing between 40 and 50 percent of the money the fed gov is spending now.  There is no way to continue that and there is no way to pay for what we have already spent.  The inbound revenue stream to the fed gov is about 2.4 trillion.  We are over spending by 1.6 trillion this year and it is scheduled to increase dramatically over the next 20 years.  There is no way the world is going to loan us that kind of money.  And as it becomes more and more obvious that we can no longer control spending the world will get scared and the purchasing of our debt by foreign countries will be reduced – this process has already started.  The fed res is holding down interest rates to basically zero right now and plans to continue this for the next few years.  That is totally unprecedented and should give fair warning to everyone that a very serious situation has developed.  I’m not sure they will be able to continue to do that forever.  If interest rates go up there will be an unprecedented blood bath in the treasuries market.

One thing is for sure.  CM is dead on right.  The next 20 years are not going to be very good for America and really large bad things are going to happen.[/quote]

I am 100% agreement that foreign countries will stop buying US debt. My question is what will they buy? There is only so much PMs and commodities. I think commodities outside of food, energy and water will decline too because when debt stops no one will be able to purchase goods and services outside of necessities.

The next 20 years will not be good for America but will not be good for most if not all countries due to the death of consumerism.

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