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« The Real Banking Crisis | Main | Excerpt From SK OptionTrader on Silver Market Mentality »
Monday
Aug012011

We are bankrupt: Ron Paul

Ron Paul 02 August 2011.JPG
Ron Paul

So, as we all debate the lifting of the debt ceiling and the accompanying spending cuts the next hurdle will be the ratings agencies deliberations regarding the status of the US Dollar. Will it remain at AAA or will they find their backbones and deliver a downgrade?

One of the few politicians that makes any sense to us is Ron Paul so we thought it worthwhile to bring you this short clip where he talks about the United States being bankrupt and what needs to be done if the US is to get out of this mess. Please click this link.

Over on his web site he had this to say: “While it is good to see serious debate about our debt crisis, I cannot support the reported deal on raising the nation’s debt ceiling. I have never voted to raise the debt ceiling, and I never will.

This deal will reportedly cut spending by only slightly over $900 billion over 10 years. But we will have a $1.6 trillion deficit after this year alone, meaning those meager cuts will do nothing to solve our unsustainable spending problem. In fact, this bill will never balance the budget. Instead, it will add untold trillions of dollars to our deficit. This also assumes the cuts are real cuts and not the same old Washington smoke and mirrors game of spending less than originally projected so you can claim the difference as a ‘cut.’

In fact, this bill will never balance the budget. Instead, it will add untold trillions of dollars to our deficit.


We more or less agree with the above and as we wrote yesterday on gold-prices this deal is akin to fiddling while Rome burns.

Just to reflect on the last few weeks we have been surprised by the number of people who have taken a stance along the lines of both gold and silver falling out of bed when this debt deal is all done and dusted. Our opinion for what it is worth, is that the debt problem cannot be resolved by more debt. We have written many times that this is the same as giving the drunk another drink and expecting him to sober up. So far we have managed to stay on this tight rope courtesy of an excess of liquidity, however, liquidity is not a remedy for insolvency. Japan has spent twenty years on a low interest policy supported by boat loads of liquidity and they are still struggling.

Once people have had time to digest this deal and conclude that this is more of the same old thing, gold and silver will make a strong move north. We may undergo in the next week or two a very shallow dip which would be a buying opportunity in our view, but don’t count on it. Gold and silver could indeed start their seasonal 'fall' rally a tad earlier than usual and catch many off guard.

If you are not in position yet, please don’t leave it too long as things can move with surprising speed as we witnessed recently when silver prices got close to the $50.00/oz level.


Regarding www.skoptionstrading.com. We have now placed a number of trades in the options arena and they are progressing well.



For those subscribers who are too busy to trade their own accounts we are now able to offer an Autotrading program with our SK OptionTrader service, as we are pleased to announce that we have entered into a partnership with GlobalAutoTrading and therefore auto trading is now available for SK OptionTrader signals


Our model portfolio is up 338.11% since inception

An annualized return of 117.00%

Average return per trade of 40.41%

81 closed trades, 78 closed at a profit

Average trade open for 46.27days


sk chart 22 May 2011.JPG



The above progress chart shows our performance when profits are re-invested, however, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today.

Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.



To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. (Winners of the GoldDrivers Stock Picking Competition 2007)

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SK logo 26 May 2011.JPG




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Reader Comments (4)

"Once people have had time to digest this deal and conclude that this is more of the same old thing, gold and silver will make a strong move north."

Didn't take long, did it?

August 2, 2011 | Unregistered Commenterfallingman

how can US be bankrupt when US issue its own money?

August 2, 2011 | Unregistered Commenteryong

fallingman,

It certainly didn't, but all those talks were complete and utter tosh - the public is not as dumb as those politicians think!

August 2, 2011 | Unregistered CommenterSilver Prices

Yong,

The more they print the less it is worth and the day is coming when no-one will want it, this has happened many times in history, the USD wont be the first to bite the dust, or last.

August 2, 2011 | Unregistered CommenterSilver Prices

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