GP Academy Letter 250807: Economic Bubble Bursting. Gold To The Rescue.

Dear Friends,

Two articles today to get your cortisol circulating…

Think America Owes $37 Trillion? It’s Far Worse Than That
“… many… will tell you the national debt has reached $37 trillion… America’s true fiscal situation is… far worse. According to a barely-publicized Treasury report, the actual grand total… is more than $151 trillion.”

The Bubble Is Bursting: Delinquency Rates Doubled And Credit Card Defaults Soaring
“Experts are sounding the alarm… credit card loan defaults soared… record-high consumer debt… delinquency rates [at]… highest levels in more than a decade’… most of the nation is really struggling right now.”

Gordon: With each passing day the coming financial crisis looms larger as Uncle Sam adds a fresh $1 trillion dollars to the debt every 100 days. Do the math—that’s $10 billion dollars a day, or about a half a billion every 60 minutes.

With the derivatives complex now exceeding the GDP of the entire planet, the current economic trajectory is clearly unsustainable. And as the wag once said… things that cannot be sustained must stop.

I remember during the financial crisis of ’08, one U.S. representative said he had received a call from the Secretary of the Treasury saying that, if he didn’t vote for the relief package, America could see, and I quote, “Martial law.” That really got my attention.

I foresee a day when emergency orders are given, capital controls are instituted, inflation hits new highs and anyone trying to buy gold or silver will be told, “Sorry, no bid!”

In trader’s parlance, that means that no one is selling. If you want to buy something, someone else has to sell it to you. When there are no sellers, there can be no buyers.

The time to position your family strategically is now. Two Sunday nights ago I presented the true state of inflation and showed how, unbeknownst to 99% of the working public, gold has doubled the gains of the U.S. stock market over the past 25 years on a percentage basis.

Last Sunday I shared a spreadsheet that calculates exactly how much of your electronic money (401k, IRA, CDs, other fiat investments) to move into gold to offset inflation completely. Yes, to 100% neutralize inflation in your retirement planning.

Remember that gold isn’t just a hedge against fiat inflation. Gold is a hedge against the collapse of confidence in government, indeed against the collapse of civilization itself.

This Sunday Night
Got a 401k? IRA? This Sunday night I will demonstrate for students how technical analysis can help to detect when the stock market is about to crash again. And what you can do to protect your retirement funds when you see it coming.

Unfortunately, this type of analysis never seems to be forthcoming from our nation’s leading franchised financial planners (…where is Ed Jones when we really need him?)

I have always chosen to avoid licensure so as to stay independent of Wall Street. My business card used to read: Financial Unplanner

Students:
Login and browse to Students > Video Playbacks for the Sun 08/03 and Sun 07/27 presentations on inflation and gold as a calculated inflation hedge.

Not a Student?
Click HERE to enroll. Just $15 a month and you can quit any time. If ever not satisfied, your previous month’s tuition will be cheerfully refunded.

Gordon Phillips