Real Wealth #267 08/11/2010
U.S. Total Debt Now Stands at $200 Trillion!
Dear Gold and Energy Subscriber,
Last month, the International Monetary Fund released its annual review of U.S. economic policy. Its summary contained these bland words about U.S. fiscal policy: “Directors welcomed the authorities’ commitment to fiscal stabilization, but noted that a larger than budgeted adjustment would be required to stabilize debt-to-GDP.”
But delve deeper, and you will find that the IMF has effectively pronounced the U.S. bankrupt. Section 6 of the July 2010 Selected Issues Paper says: “The U.S. fiscal gap associated with today’s federal fiscal policy is huge for plausible discount rates.” It adds that “closing the fiscal gap requires a permanent annual fiscal adjustment equal to about 14 percent of U.S. GDP.”
It adds up to $200 Trillion in total
debt and this spells a disaster scenario says Laurence Kotlikoff, an
economics professor at Boston University. I recommend watching this
special Bloomberg Video ... http://www.bloomberg.com/video/62140030/.
All of this supports my view that it has NEVER been more important to load up on physical gold bullion.
Please see risk disclosure link below.