Monday, December 19, 2005

No Way Out - System Doomed to Hyperinflation

Here is the conclusion to John Williams' Shadow Government Statistics review of the 2005 Treasury GAAP accounting report:
"No Way Out -- System Doomed to Hyperinflation

The regular, annual $3.5 trillion shortfall in government operations cannot be covered by Uncle Sam; the situation has deteriorated beyond any hope of a solution within the existing system. Raise taxes? Even a 100% personal income tax would leave a deficit. Cut spending? Spending cuts that would bring government fiscal conditions into some semblance of order would be so draconian as to be beyond any political possibility in today's environment. What remains inevitable -- only a matter of time -- is a national bankruptcy.

Such circumstances in the past -- though no nation on earth has ever come close to experiencing the level of fiscal and financial fraud now being perpetrated on the American people -- typically have been "cured" by revving up the printing presses and creating excessive quantities of money. The end result is a monetary collapse in a hyperinflation, with the currency becoming worthless.

In times of hyperinflation, gold coins are a store of value which can not be printed out of existence. For more information on buying gold coins and gold bullion visit our section: How to Buy Gold

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