Video: Peter Schiff in Maryland 2012 (playlist)

U.S. Treasury: China Has Decreased Its Holdings of U.S. Debt | CNSnews.com

Not Good!

U.S. Treasury: China Has Decreased Its Holdings of U.S. Debt | CNSnews.com

Michael S. Rozeff on Monetizing the Debt

A few reasons to buy gold and silver:

As the Federal Reserve keeps buying more and more government debt, with no prospect of reducing its holdings unless and until the government gets its house in order, bond yields are likely to rise, despite Fed buying, because yields also reflect inflation premiums. The prospect of inflation will rise as the Fed monetizes the debt. We would then see yields rising accompanied by firm prices of commodities and metals.

The inflationary participation by the Fed, which postpones the inevitable fiscal decisions of the government, harms all holders of fixed-dollar assets and all those whose receipts of dollars are fixed and lag behind the Fed’s production of new dollars. In addition and more importantly, the inflation sets in motion another boom-bust cycle.

M. Rozeff, Geithner Says U.S. Insolvent

What Keeping Confidence in the U.S. Dollar is all About

Even the outside world (countries outside of the U.S.) have vested interest in keeping confidence in the U.S. dollar high. The main reason is that "at the moment the bulk of the monetary reserves of central banks across the world consist mainly of dollars and US Treasuries."

Because of decades of exporting our inflation to other countries, we have merely pushed off a total decline in the value of our currency. So what is keeping confidence in our dollar now?

Dr. Sander O. Boon explains:

The dollar reserves retain their value as long as the American economy keeps on performing well enough. But when confidence in the American economy crumbles, so does the value of dollar denominated assets, once investors start selling some of them off. The world fears losing its confidence in the dollar, as it would be a very costly affair for the holders of these assets. You could also try to describe the situation as follows: as long as your neighbour keeps his job, the value of your own house remains intact. This is the very fragile basis on which our entire monetary system has been built.

Yikes!