It seems a bit odd that a little good news from across the ocean can hold down the price of gold coins while the world’s greatest economy teeters on the brink of collapse.

June 29, 2011 – It seems a bit odd that a little good news from across the ocean can hold down the price of gold coins while the world’s greatest economy teeters on the brink of collapse. But don’t look that gift horse in the mouth – take advantage while you can.

Consider what the real intent of Fed policy makers has been since 2008 – to re-inflate the credit bubble. But that is not about to happen because the bubble has some very large holes in it. All they are doing is “squandering time and public credit that we desperately need to take policy steps that stand a chance of producing lasting economic growth by re-building the foundation of a productive America,” says Eric Janszen on iTulip.com.

Our problems are “rooted in the inability of our national economy to produce enough primary surplus to grow, create jobs, and also pay debts left over from a previous splurge” while at the same time trying to deal with “an energy intensive transportation infrastructure as oil import costs rise.”

Soaring energy costs are merely the camel’s backbreaking straw. Janszen points out several disturbing conditions that can lead not only to economic decline, but social collapse as well:

“We will not be able to afford the cost of 2.5 million incarcerated Americans.”

“We will not be able to bail out retirees for trillions in unfunded corporate pension liabilities.”

“We will not be able to afford 1.5 million men at arms, but we will grow this force anyway.” “Forty-four million Americans [are now] living below the poverty line … [and] a fifth of the US population is on food stamps.”

As each special interest group hunkers down to protect its entitlements our nation becomes ever more fragmented. “Not since the draft and the Vietnam War has public policy so divided the nation,” Janszen says. “We are seeing a wide range of social domestic conflicts develop as budgets are cut and at the same time the basis for real economic recovery diminishes … All macro economic trends are going in the wrong direction to reverse negative social trends.”

Those negative social trends are what concerns me most. We were warned long ago that “a nation divided against itself cannot stand.” Yet that is exactly where we are headed. Barring some miraculous reversal of fortunes, a period of social disorder is rapidly approaching in which the old rules will no longer apply.

There will be no credit and our cash will be worthless. Buying gold coins now while the price is low is not just for the paranoid, it applies to all prudent Americans wishing to preserve the future for their families.

Kevin Johnson

Senior Staff Writer – GoldCoin.net