I just received brand new information regarding to the government debt figures of all over the world. When I see that figures, numbers are just so staggering and confirmed me to keep my current strategy: Investing in gold and silver... In ths blog, I would like to share with the $ amount of the debt each countries carries and roll over to the new debt in this year (I bet you will be convinced that you will be blown away with these figure...)
According to the Bloomberg, total amount of debt that various nations must roll over in 2012 is $7.6 trillion (Which is $7,600,000,000,000)... Even scarier part, this does not even include local, state, corporate nor other unfunded liabilities like social security and medicare (If includes that, amount will become tenfold...). Let's take a closer look at lists hows the amount of debt that these various nations must roll over in 2012….
Japan: 3,000 billion ($3 Trillion)
U.S.: 2,783 billion ($2.8 trillion)
Italy: 428 billion
France: 367 billion
Germany: 285 billion
Canada: 221 billion
Brazil: 169 billion
U.K.: 165 billion
China: 121 billion
India: 57 billion
Russia: 13 billion
With the super-low interest rate by their own central banks, those countries still can manage to stay afloat. But, what if interest rate starts to increase, even couple of percentage points? (And inevitably have to increase. Otherwise, inflation will be out of control if not hyperinflation) Once rate increase in small percentage, this global financial system will start to implode. Personally, I am afraid that Japan, Europe and US are verge of default and their choices are very limited; either keep rolling over their existing debt (Hyperinflation) or default (Financial meltdown). That's the reason why I invest in gold and silver. By holding the real assets like gold and silver, I can keep the purchasing power during this catastrophic period.
As war with Iran is gradually developing (I won't be surprised that price of gas will be more than $5 level bythe middle of this summer once war started) along with these debt figures around the world, I am expecting to have massive (20, 30 even 40%) inflation. Therefore, I am pretty much confident that gold and silver will increase in parabolic in this coming years and people who can see this will obtain massive wealth from this. On the other hands, I feel sorry when I see the people still living in old paradigm as most people are. My heart is cringe every time I see the person believing working hard for money and putting the money in the bank or 401K is the safest thing. I can pretty much assure that those people will be slaughtered financially in this coming years. I can't stress this enough in every blog I wrote but understanding big picture of what is really going on is crucial and I beg every person reading this blog to prepare and educate yourself.
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Published: 19 February 2012