Will the middle classes become “serfs” in the United States, or will they disappear? Many economists believe an economic recovery will not be possible for many years, or even decades. Economically, Americans are under severe pressure due to rising inflation, low incomes, higher unemployment and falling dollars. This is the calm before the storm, whether we like it or not. Jim Sinclair (a highly respected economist who is also a precious metals expert) was quoted as saying that the economy would not recover for more than 10 years. He believes that there will be no middle class and that gold prices per ounce could surpass $12,000. What are we to do with Wall Street’s “low balling” gold price forecasts around $1700/ounce? Visit gold IRA firms before reading this.
Let’s consider a few economic predictors. These will help you distinguish between the hype and the facts and help you make financial decisions that can protect your family and prevent them from facing the same financial difficulties as the rest of us in the future.
Let’s start in Europe. The European Union is trying keeping afloat countries such as Greece, Portugal Spain, Italy and Spain. The Euro, which is on the verge to collapse, will be the next victim of this European Union. Germany has been asked to contribute money to Greece to avoid the country falling apart. Germany did this with the understanding that Greece would make changes necessary to “fix their ailing economies.” One year later, Greece still needs money. German tax dollars are going to a country in which the citizens refuse to change their lifestyles and give their economy a new lease of life. Even worse, Greece isn’t interested in the money from EU. They would rather go bankrupt, default on their loans, than change their lifestyle. Portugal, Spain and Italy support Greece. They prefer not to default on their loans and be forced to accept money from the European Union. In the past the strength of European economies was used to hide the weaknesses and inequalities of other countries within the Union. The EU is now in crisis. This delicate union cannot be sustained because there are too many countries with different governments, cultures, languages, values, beliefs, and other factors. The Euro is at risk because the euro economy is in trouble. This crisis will also lead to the flight of gold and silver.
What about then the US dollar? The federal debt refinance ended in June. Our government has been printing money in order to pay the US interest. The dollar’s value decreases as this “extra money” enters the market. Our fiat currency could soon become worthless and ineffective. The United States already have an alternative currency available. It is known as the SDR or (special Drawing Rights). What happens if you own stocks, bonds or T-bills? They are all worth US dollars. These are in US dollars.
A family that works hard to raise their kids, educate them, saves for retirement is in for a huge shock. Their investments will not allow them to survive, as dollar investments become less valuable. Even if dollars survive, which they won’t – the Federal Reserve’s continuous money printing will make their purchasing power so low that no middle class family can save enough.