Q:
A: Let me break it down for you. The US has 9 Trillion dollars in debt before this economic nonsense happened. It now has to bail out more banks. Well over a Trillion dollars worth of deposits are supposed to be protected by the FDIC. Guess how much money they have? 50 billion. Not a whole lot. If the FDIC runs out of money, they have to go to the government. The problem with the government is that THEY ARE BROKE! So what is the government to do? They crank up the printing presses. Now the problem is that when you do that, you tend to devalue your currency. That 10 thousand dollars that might be able to buy you that nice motorcycle will probably only be able to buy you a loaf of bread when the government gets through printing money. The point is, buy real hard assets. Not paper. Buy gold, buy land, house, food, anything that is TANGIBLE! Think of it this way... you have gold, you can trade it for something of worth. You can trade it for a house, two goats if you wanted to. If the US dollar becomes worthless, which is in danger of becoming if the government doesn't get its act together, it will be good as sturdy toilet paper. The US government has mechanisms in place to blunt to force of the current economic crisis unlike in the 30's. Otherwise, we would be standing on soup lines right now. However, I think our country is headed for a slow fall to the bottom. BUY TANGIBLE ASSETS! You will secure yourself for the future, and it looks bleak. Oh, and to anyone that thinks this is irrational fear, 9 trillion in debt is no joke. That is real. Governments around the world are eventually going to tire of buying worthless US securities. When the gravy train stops, we will be in dire straits and we will be broke.
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