The dollar keeps plummeting, our Treasuries are crap, and the Fed is fueling the fire with extra-flammable doses of quantitative easing. If Fed trends continue in such a manner, the U.S. credit score will spiral out of control in a downwards fashion.
If you tried to pay a cable bill after you'd already spent your entire paycheck, you'd inevitably run into a bit of a problem. If you went on a shopping sprees using credit cards all the time and couldn't afford to pay the debt and interest, you'd run into another problem. Likewise, the Fed can't keep using 'monopoly money' to pay back government loans or there's going to be a whirlwind of problems erupting in our already eroding economy...
Unfortunately, there's no credit card company holding the Fed accountable for their actions. They'll keep printing as they please, assuring Americans that this is the “only way” to keep the economy afloat. However, quantitative easing is dangerously counteractive. It diminishes the value of the U.S. dollar and will force the Fed to drastically raise interest rates in the future, no doubt.
We simply can't keep living beyond our means and using borrowed money to pay for it all. Recent history shows what that has done to our nation.
In 2005, our debt was at 5.6 trillion dollars and in 2010 it was $13.5 trillion dollars. In just four years ' time – at the latest – our debt will have surpassed the $20 trillion mark in 2016.
“We, as individuals, can live beyond our means by borrowing, but only for a limited period of time. Why then should we think that collectively, as a nation, we are not bound by that same limitation?”
-Ronald Reagan
In order to protect yourself and your savings throughout this transition – the dramatic decline of the dollar – you will have to diversify your portfolio accordingly. You will want to make sure you have some gold bullion investments within the next couple of years.
To learn more on why this is your best option in these tumultuous times, watch the video below which highlights the issues associated with quantitative easing and gold investment, as discussed in this article.
Source: http://www.wealthwire.com/news/metals/3433?r=1