Investing in gold coins is the easiest and most secure way to survive the most dangerous bubble of all.

February 23, 2011 – Investing in gold coins is the easiest and most secure way to survive what Martin Weiss, market analyst and advocate of long-term investor safety, calls “the most dangerous bubble of all.”

Weiss is talking about the bond market, the place where corporations go for money to keep things running as they grow. If the market were to collapse, that money would dry up and the economy would come to a screeching halt. Just look at the predicament most of the states are in.

State and local government depend heavily on the $2.8 trillion municipal bond market to fund everything from social programs to improving and maintaining vital infrastructure. But as the states run out of money they have only two places to turn: the Feds or default. And Congress has been unyielding in its stand against any further bailouts. As a result the municipal bond market is already sinking and just a few major defaults will cause it to collapse.

The Fed’s fiscal policy has been blowing up the bond bubble for a decade now and Weiss gives three triggers that could burst the bubble at any moment: inflation, deficit inaction, and dollar collapse. All three are directly connected to Bernanke’s policies.

The Fed may not see inflation, but “numerous quarterly reports from large multi-national companies indicate very clearly that inflationary pressures are building,” says Frederick J. Sheehan, for The Daily Reckoning, and he gives eight examples of major US industries that are being squeezed by strong upsurges in input costs.

Meanwhile the Fed continues trying to reduce the deficit by printing more money. But when foreign investors, who hold 60% of federal debt, see their dollars cheapened, they’ll rush to “to dump their holdings — driving bond prices down and interest rates skyward,” Weiss says.

Buying gold coins is not only sound advice to survive the most dangerous bubble of all, at today’s prices, it’s also a bargain.

Kevin Johnson

Senior Staff Writer – GoldCoin.net