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US debt in danger of being downgraded

In a piece posted on, David Chapman, director of Bullion Management Group Inc., gives a succinct overview of the problems in the Middle East as the revolutionary movements threaten the stability of the world’s major oil producers. He sees the developments being dangers to the dollar, including the possibility of US debt being downgrade by credit agencies.

Chapman further sees the potential for hyperinflation, something that is not discussed in Main Stream Media outlets despite the massive creation of dollars by the Fed.

He notes,”The US is the world’s most indebted nation and is trying to bail itself out by printing money, thus monetizing the debt. The world knows it and many are concerned because of their large holdings of US securities.”  Is there any wonder that gold and silver prices are at such levels?  Investors around the world are dumping dollars, and many of those dollars are going into the metals.

When investors, sovereign funds and world central banks are sitting on more dollars than they can possibly convert to gold or silver, does it really matter to them what price they pay for gold and silver?  That is wild card in this market that makes it so difficult to predict price movements.

Read Chapman’s The End of the US Dollar.  He also details the periods when the world has flipped between gold-based currencies and fiat currencies.  It’s an excellent read for gold and silver investors.

4 Responses to “US debt in danger of being downgraded”

  1. Buy Gold UK

    Isn’t the printing of huge amounts of money the root cause of hyperinflation? At least this is what the likes of G. Edward Griffin teach.

    • Bill Haynes

      Yes, the printing of (or the creation of in this world of electronic money) huge quantities of money is the cause of hyperinflation.

      Ed Griffin, most famous for his book The Creature from Jekyll Island is only one of many who correctly espouse that the creation of money is inflationary and that the creation of excessive quantities of money leads to hyperinflation.

  2. Tom Hurley

    With the control of news being in the hands of government-loving media outlets, it is not likely that Americans will be alerted to the danger that is building regarding the value of the fiat dollar. Also, inflation accounting using the consumer price index excludes the costs of both food and energy. Yet those are two of the most important costs to the average citizen and are rapidly rising. So the government is systematically lying and systematically spending the country into bankruptcy.

    Another thing: Too Big To Fail was the reason for bailing out the corrupt banking industry. I would add Too Big To Jail to the lack of prosecution of the instigators.

    I’m glad I bought 250 pounds of pre-1965 coins way back when they were cheap.

    • Bill Haynes

      I not certain that it’s a “government-loving media.” I think sometimes that the people who are the government are the same people in the media. Still, I get your point.

      Too Big Too Jail? I think you have a point there.


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