Saturday, October 17, 2009

record deficit

The record 1.4 trillion dollar deficit could have been more worse. Folks, the sky is not falling, but the US dollar is.

Back in 1929 with an ounce of pure gold worth approx $20 you could rent a room for one month. Well we can find that very same room and rent it using that exact same ounce of pure gold. Well, you see, gold is now over $1000/oz. The room is still the same, and the block of bullion is still the same, but the dollar is almost (not quite yet) worthless.

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