America is doing a fine job at self-destruction.  The printing presses are going full stream ahead without any concern that the government won’t be able to get enough people to lend them the money at what will have to be very low rates.  Low rates because the interest on the national debt is already rivaling the Defense Dept and it wouldn’t take much higher rates to surpass it.  For now, everybody is scared about defaults and since the US government hasn’t defaulted the assumption is that your money is safe — oh, assumptions!  Given that the currency is only as strong as the government, many assume that if the government fails then the money is worthless anyway.

Well, everybody will be right at some point.  As the current deflation continues with the unwinding of an over leveraged system, people are trying to protect their cash.  Funny, these people are buying US government Treasury debt to do so.  Once people understand that the US government is bankrupt then the rates on the debt will increase as the principal is destroyed.  The government will have to pay higher rates to float new debt and there is always new debt.  The US government loves to finance long term with short term debt which has lower rates.   Eventually, the rates will begin to rise as inflation returns.  This will be followed by hyper inflation and the official bankruptcy of the US.

Get out of US treasuries and into hard physical assets.  By the way, don’t expect to hold stock certificates that represent gold — those will fail also.  Hold gold or other physicals.

People keep saying this is not like 1929.  Yes, they are right!  In 1929, the US government didn’t have the kind of NATIONAL DEBT that the government has now.  This is much worse than 1929.

America is doomed.