I also told you (read below) that all three ratings agencies are going to keep the USA at AAA rating, and that this whole thing will quietly disappear from the media until past the next election. This afternoon Fitch and Moody's just kept the USA's AAA rating, and S&P I am sure will keep it too. Which makes no sense. Greece just got cut to CCC because IT'S IN THE SAME SITUATION WE ARE - in danger of default.
The USA is a spoiled, petulant little bully of a boy who doesn't want to give up its Kim Kardashian handbags in OK Magazine. But month after month, your purchasing power is going away (look at the price of gas).
Hyperinflation is coming to the US. It's the only way to get out of this 1:1 debt to GDP ratio unless of course, the economy takes off, which it won't.
I always ask the two most important questions when evaluating an asset. 1) is the value perceived or real? 2) is the price change sustainable?
When you ask those questions, it's super easy to see where, as Alan Greenspan said about financial forecasting - "it's determining where imbalances will ultimately resolve". Reading Greenspan's book was an amazing experience because he's so book smart but has no real common sense about human behavior and greed.
Gold hit a huge number today - breezed right by $1,650. It's up 40% in the last 12 months, and has been trending upward since I started telling y'all about it when it was $254/oz. What other asset class does this?
Here's another thing. I've only ever lost in one investment. It was Iomega stock, and my dad told me it was a hot tip.
I have never, ever lost a dollar in any investment in my whole life where I researched the asset, using the two questions above. That's all you need to know, it's that simple.