by Bobby Casey, GlobalWealthProtection:
Welcome to the North American Edition of… Insolvency Issues!
First up, Canada!
She sold off ALL her gold reserves! One economist, Ian Lee, thinks if the US can abandon the gold standard, so can Canada! It’s CAN-ada, after all… not CAN’T-ada. This just happened in the past month, and the claim is there are other “better assets” to pursue. What they are, or what makes them “better” has yet to be addressed by any Canadian officials. If they are truly following in the US footsteps, then I assume they will be looking to China for some economic favors? If not buying up treasuries then buying up real estate.
How can Canada see gold as so dispensable, while the Chinese and Russians sucking it up like a vacuum? Even the US touts its holdings as being still the highest in the world. What does this mean for Canada? I honestly don’t know. Like every other crazy event in the world, we must just wait and see how it unfolds. I don’t expect anything good to come from this move.
The one thing that’s for sure, ever since the US left the gold standard, she has been struggling. Unbacked currency is debased and struggling to find worth and value, especially as others seek to back their currencies again. Hedging your entire future or retirement on the “full faith and trust of the government” seems highly irresponsible.
Another interesting phenomenon is that Canada is also following in the footsteps of the US on the mortgage and housing front. While their salaries have largely kept in line with the rate of inflation, the cost of real estate has not. It has instead skyrocketed. This isn’t shocking, except that the average household debt levels in Canada have gone from 89% of their annual disposable income to nearly 165%.
They are walking the same precarious line as the US, and I supposed soon, some Canadian blogger will be pointing out the warning signs of doing so, just as we do with the US and other countries.
Next up, the United States.
Well, let me just put all the allegations of fear-mongering to rest right now. When I say we are heading toward an economic disaster, people call me some fear-mongering conspiracy theorist. So I’m just going to let the numbers speak for me. I don’t care who’s word you take for it, this is at best terrifying.
The US government just released its financial statement, and it ain’t pretty. See the assets and liabilities chart below:
Assets, as defined in the statements are: “loans receivable, net; property, plant, and equipment (PP&E), net; inventories and related property, net; and cash and other monetary assets.”
Also included as an “asset”: “Stewardship Land and Heritage Assets in addition to the Government’s sovereign powers to tax and set monetary policy.”
(Side note: should I be concerned about the fact that among the assets of the US government is its ability to steal on a political whim? Is that listed as an asset of other organized crime syndicates as well? La Cosa Nostra has the ability to extort private citizens too. Can they list that among their assets?)
Easy to see where the nearly $18.2 trillion in national debt comes from now, right? Assets minus liabilities equals how deep in the hole you are.
Please follow SGT Report on Twitter & help share the message.