Tony Lepage

If you DO NOT have gold or silver, you will be leaving yourself open to some major financial trauma that is coming very shortly. Simply looking at the trade deficit as a percentage of GDP through history, you can see that any time the trade deficit has approached 4 or 5% of the Gross Domestic Product of a country; the economies were experiencing hyperinflation and went into deep recessions and or depressions. In the current case of the United States of America, because they are the international reserve currency, it will affect the whole world. Two years ago, this percentage was 3% of GDP, now it is 5% and pushing towards 6.5% of GDP.

Examples include Argentina in 1980, was experiencing hyperinflation. Brazil, in 1981 was experiencing hyperinflation. Bolivia, German–the tipping points of all these countries was when the trade gap as a percent of GDP had approached 4.5, 5, 6% of GDP.

The signs of trouble are becoming very visible. The cracks are evident and getting bigger. The global trade imbalance is the hallmark of the problems with the US economy and we’re in the middle of the danger zone right now.

There are several large lies being told and it only takes a few minutes of looking at the world to see them. Lies. Inflation and the CPI, we’re told inflation is 2-3% CPI is obviously under reporting inflation. To the average person, it means your income is NOT keeping up with your expenses. What happens when you can’t afford to buy anymore? We’ll buy fewer products and thus, Asia will have less to reinvest into the United States and then interest rates will become even harder, if not impossible to control.

Major problems:

1. The US dollar is extremely vulnerable to an extreme devaluation.
2. The US economy will slow
3. The Euro will no longer be an alternative to Gold as an alternative to the US dollar as it has its own difficulties.
4. Derivative and hedge funds will have large problems.
5. You’ll make money, let alone save your money, if you buy gold and silver bullion. You’ll make the most buying gold mining stocks. There will be the best returns especially within the junior mining sector. It’s like buying IBM in 1991; you’ll make money, but not as much money if you would have purchased Cisco Systems.