Since the 1970s, the U.S. government has been accumulating debt and printing money at a much faster pace than the economy actually is growing.
Increasing debt would be alright IF the economy was exponentially growing to pay it off. But our economy can’t keep up with the pace of the debt and money printing as the government takes measures to pay for resources that continue to become more expensive as supply diminishes.
Some economists were surprised last week by a report showing that the U.S. gross domestic product (GDP) shrank in the fourth quarter, quick to write it off as a result of decreased defense spending, and focusing on the year GDP growth rate of 2.2% for 2012. Unfortunately, it doesn’t matter if the economy is shrinking at 0.1% or growing at 2% or 3%. However you spin these numbers it, it’s just not enough.
The bottom line is, we never actually got out of the last recession and when the government is borrowing 8% to 10% of GDP, and GDP is growing at 2% to 3%…something is a miss. In all actuality, the real economy could be shrinking by 5%–7%!
It’s no wonder the Fed is trying to spark the economy with quantitative easing, but the odds of a shock to our fragile, debt-laden systems are a lot higher over time than the odds of the Fed’s plan actually succeeding in spawning significant growth.
So what can you do to protect against this potential shock to the economic system? BUY GOLD!
Since 2000, gold prices have increased over 500 percent while the value of the dollar has continued to suffer as a result of government action and inflation. Call Capital Gold Group at (800) 510-9594 today to find out how you can add precious metals to your portfolio!