There are investors who bank on the dollar and Treasuries as well as those who remain faithful to precious metals, especially gold bullion investment. And it is the latter that seem pretty clear on one thing: the United States is bankrupt! It is with this in mind that I write this article…to justify why they believe this statement and why you should also contemplate what is written here before you regret any other investments you pour your hard-earned money into.

Let’s turn our attention to the Super Committee who not long ago attempted produce a proposal to hack the deficit by $1.5 trillion. We know how that went…kaput!!! We all knew they would blunder, but what’s even more disreputable is that it wasn’t just the annual budget, but the budget of the next ten years! Not good.

In a nutshell, the US government is up against an utterly insurmountable and irrevocable situation where the financial state and political power are, unfortunately, also working contrary to it. And you know what? There are solutions, but they will not be enforced. Why? Because our government will not show any sign of weakness or of needing anyone’s help in the matter…they have everything under control!

It’s not even that they caused this whole mess. It wasn’t the bankers, brokers or real-estate industry, despite their conspiratorial contributions. Maybe we should have limited our government when we decided we needed one. It is at this moment where we must ascertain the disparities between government and society. The government’s soul is based upon force, not voluntary support. What the government actually furnishes is without a doubt what society itself renders or by way of reserves the government has obtained from the population. This is a critical point to grasp so that you may appreciate the path upon which our government is on.

Currently it is projected that there is no turning back for the United States.

• It began cascading way back in 1898 with the Spanish-American War when it snagged its first foreign possessions including Puerto Rico, Cuba, etc.
• It then regressed more with the appearance of the income tax and the Federal Reserve in 1913.
• To make matters worse, it took another step down in World War I when the government appropriated the economy for 18 months.
• Then came the New Deal and World War II which generated the state into a lasting major feature in the average American’s life. The Great Society made free food, housing, and medical care a feature.
• The ultimate abolition of any connection of the dollar to gold in 1971 guaranteed incessant levels of currency inflation.
• The Cold War and a succession of undeclared wars including Korea, Vietnam, Afghanistan, and Iraq, established the military in place as an immutable spotlight of the government.
• Subsequently, the terrible attacks of 9/11 occurred and we forever-after will declare the War on Terror.

If war is the health of the state as is said, then we have lots of health which will, ultimately, heighten spending for the state. Unfortunately, though what is coming in the form of a Greater Depression will channel out the middle class as a lamentable consequence. In 114 tears, the United States never reduced their spending habits! And it’s only aggravating. Trends in movement tend to remain active until a real disaster alters them, and this tendency has been snowballing for over more than a hundred years!

Again, the ultimate losers here (unless they do something to help themselves) are the middle class. This is the part of society which tries to generate more than they consume and save the difference with hopes of becoming richer. The problem lies in the target they’re saving…dollars. And what will happen to them and their savings if dollars are overthrown? Bad picture…very, very bad. Maybe it’s time to for serious gold bullion investment…

Gold. It is a word that symbolizes so many different things and is associated with the oldest part of our history that even the more established continents in the world are still enamored by its luster and stability. Gold customs branch out across Asia and have for centuries, keeping many nations like India, China, and Vietnam in the middle of the gold mania which persists throughout the world. Unfortunately, despite this fascination with the yellow metal, there are countries which simply can not output sufficient gold to meet their substantially elevated claim.

As reported in December 2011, China was still bursting with gold madness. In order to control the prevalent demand to sell gold at such steep prices, the nation put a stop to it by confining its gold exchanges to merely two which are both regulated by the government. This action had as its goal to protect the buyers and the country so as to curb the number of exchanges that were, in the previous months, developing on a widespread scale.

It has also been reported this month that China’s gold imports were being intensified exponentially. The Lunar New Year, occurring on January 23rd, has had investors running to the precious yellow metal, thus initiating a flood in demand for gold, as normally occurs each New Year. In 2012, though, investors conspire to secure their wealth by hedging against the financial chaos.

China is going about their gold mania in a disciplined manner and the government accepted gold rush has been embraced very well. Conversely, any indication of hysteria might possibly remind Beijing just a little too much of what’s been occurring in the adjacent, gold-laden and similarly Communist state of Vietnam.

Vietnam is somewhat mirroring China. The country, which looks most like China in tradition, heritage, and culture, also shares an immense gold crisis. The country is expected to import $2.5 billion in gold during 2012, as reported by the Vietnamese state television. This would be roughly 10% higher from last year’s total imported. The government affirms that lest the gold market steadies itself, the amount imported will be above normal. The purpose is to balance out the gold market. This is precisely why Vietnam’s central bank has permitted more than 10 companies to import a total of 2.1 tons of gold for jewelry output.

Last year, efforts were made to do so by increasing the penalties for gold trading breaches, elevating the highest fine to 500 million Vietnamese dong ($23,860). The government tried to taper the gap between domestic and world price of gold back in September by conceding banks and gold companies to import gold.

Presently, companies such as Jewel Park Vina Ltd Co, Son Duong Vang Ltd Co, and DI Ltd Co have been approved quotas which allows each of them to import more than 300 kilograms of gold. DI has been authorized the largest amount to import of 0.45 tons, followed by 0.36 tons for Jewel Park Vina and, ultimately, 0.32 tons of gold for Son Duong Vang. The remaining seven countries are permitted to import 0.13-0.18 tons of gold.

The gold that will be brought into the country will be used solely for jewelry production which, in turn, will be exported. The central bank will be presuming to have total control over gold bullion production and lessen the number of gold bar traders with higher capital and market share provisions.

Vietnam’s goals are that the market will become less volatile. This is coming from a nation that has gold embedded so profoundly in its ancestry that it even adorns the country’s national flag. Established practices in Vietnam, as in China, deem gold a very important commodity as it symbolizes wealth and luck. For the duration of the Chinese Lunar New Year, which is commemorated by millions around the same time in Vietnam, red envelopes are overflowed with gold coins and meals have gold embodied in the food they celebrate with. Presently, gold jewelry has been either come from older generations or more has been bought, exclusively for the New Year festivities. And, remember this is coming from one of the oldest continents who will now emerge on top. If they’re still buying gold bullion, why shouldn’t we?

Only you know your situation well enough to qualify it as needing more help or just staying put. You should only stay put, though, if you already have within your possession an asset which is a store of value. If you need to diversify more then you should look into history’s evidence of which assets have a reputation as excellent forms of security. What you will find immediately is that those that are buying gold bullion have an edge that will allow them a higher level of security that no other asset brings with it. With all the money printing that has been done and that is anticipated, your best bet will be something that does not rely upon paper money.

The reason for the Federal Reserve’s decision to keep up with their phony solutions has made matters worse because we still have all the original monetary complications at a much more inadequate level. Our debt has grown to overwhelming altitudes which, even if we tried, will not lessen for a very long time. The global financial world is so unstable that we only need a fraction of a hair for the camel’s back. As for oil, it’s out of control. How worse will it get? No one can ever be certain. What you can be sure of is what you own and what will not lose its total value in the face of a crisis. The upcoming year should prove to be a crazy one with all the chaos that is going into it.

Derivatives alone are up more than $100 trillion since 2009 and let’s tack on out of control oil prices. The Eurozone and debilitating GDP don’t help matters any. Finally, China can’t help themselves so we can’t expect any help from them either. What are we to do? Worst of all, our fidelity with the system no longer exists which is the icing on the cake because without that we have no system. Just think for a moment what that means…the system will no longer be composed of what we’re used to.

How are we going to come up with the $10 trillion in indispensable funding as well as the never-ending entitlement funds? Our economy is devoid of such cash flow. We can not depend on foreign aid because it no longer is available.

Oil is in the spotlight, as well, with the prices skyrocketing unwaveringly. And when oil prices climb, the economy has no other choice but to falter. It is the law of finance. For the past three years, oil has only gone up and has reached its utmost level this year. This, of course, was not something we needed in the condition the global financial world is in. Things are bound to get much worse. Even Paul Fisher from The Bank of England said that we cannot depend on anyone other than ourselves which is not very reassuring because, at present, we are not sustainable with what we are producing.

Economic growth is the way out. Yet it is that advancement which we can not bring about for so many reasons. We can’t blame energy prices keeping us down because this whole mess is self-created and it was bound to come to an end. You can’t run a country on a debt level that is steeper than what the people earn. But it is now that we are feeling the effects of the way in which central banks have been treated. Had they not been spoiled rotten maybe we could have a chance at overcoming this situation.

The past three years have not seen growth as we needed it to. In reality, we simply squared off with the $5 trillion because it had no weight on GDP. All we really accomplished was more federal debt because our economy showed more or less the same numbers yet we took on about one third more debt than in 2008. We are also not helped by the fact that there has been no real GDP development for the United States in the past twelve months. Circumstances will only decay. Proof of that is looking back at the federal deficit for FY 2011 which was $3 trillion and should pick up its pace quickly.

Similarly, Europe is on a downward path with debt and ratings downgrades. Their economy is in shambles. What else is there to be said? They have lost practically everything including their AAA debt ratings. It is the masterminds of Europe who will continue to help the Eurozone with bailouts which is just as complicated because this requires that there be economic revitalization as well as advancement. But there is neither economic revitalization nor advancement anywhere on the horizon and without that there is no hope. Within the Eurozone it is Ireland which will model how the ECB has dealt with their problems. Its economy is vanishing into thin air after it obtained help from the ECB. One could assume that austerity wasn’t the answer for them.

This is why the fixed government deficit has a 3% limit to retain sustainability within an economy. Deficits developing as much as the economy is standard; it’s when the economy shadows the rate of interest that it then branches into one of two roads: chaotic deficit or tax increase.

We are on a road to global monetary destruction with the only strategy left for the governing body is to depreciate all currencies which is how buying gold bullion will help you in the future. It will be all you have left in the end.

Unfortunately, when savings are held in cash, they lose real return over time due to inflation. To effectively appraise an investment’s worth is to correlate it with an asset which can not be inflated, hence, gold. This is the manner in which investors can calculate in real terms how the investment is upholding.

All of the wealth we are amassing will one day be spent. Whoever spends it first (us or whomever we have left it to…hopefully, not the cat) will have as much as inflation dictates. A 15% gain in dollars is only 9% in real terms if USD inflation was 6% during that time frame. A money-market return of 1% is a losing investment if denominated in something inflating at 3%. This is the importance of adjusting for inflation so that you can see in real terms where your investments are in terms of profit.

Savings in gold from 1998 till 2010 would have produced a 332% gain with no purchasing power lost. After inflation and taxes, one could purchase 50% more in goods and services than in 1998. If the savings would have been in cash, it would have been a losing investment. I’ll even remind you that from 1998-2001 gold was in a state of oblivion and lost a third of its value in the fall of 2008. After all that, the profits of gold bullion savings are unsurpassable! Now, that’s a true safe-haven.

Using gold as a savings medium will obliterate the erosion in the dollar. If that isn’t convincing enough, read on. Since 2000 (when measured in both dollars and gold), the Dow Jones Industrial Average is up 4.7% in dollar terms, but dropped 82.5% when calculated in gold grams. If you had an investment of $10,000 on January 1, 2000, it would total just $10,740 today (apart from dividends), but, wait…this will make you sick, in gold it is valued at only $1,750! That is to say that investments made in the Dow Jones Industrial Agency Index have not only lost money in real terms, they are worth scrap when calculated in gold.

Following are other types of losses:

• When looked at the profit from stocks, here’s what we find. The S&P is behind 15.1% in dollars since 2000 and has lost a whopping 85.8% next to gold. If you are unfortunate enough to be the holder of an S&P index fund, you can be certain about two things: you have less dollars than what you started with (not including dividends) and have cascaded when correlated with gold.
• As for tech stocks, they show a monstrous backslide of 38% in dollars during the same time period, but cash entrusted in the sector has lost 89.7% when computed in gold grams.
• Hong Kong’s stock market, one of the leading exchanges in Asia, exhibits an accrual of 6% in dollars. Nevertheless, it surrendered 82.3% when appraised in gold.
• The primary stock market for UK companies is down 22.4% since 2000 when valued in dollars, but has slumped 87.1% in gold grams.

What is going on here? Apparently, measuring portfolios in dollars exaggerates performance in real terms. This isn’t to say that one shouldn’t invest in stocks. It means that one must:

1. be aware of how results compare to gold or other real assets that one might buy with whatever currency one is dealing with
2. regulate brokerage statements to allow for currency weakness
3. not confide in stocks in general to outpace inflation

But, don’t think it is just investments that are deteriorating. Everything we use in our world is being depreciated, from what we eat to our modes of transportation and even our universities. We won’t see any profits if we don’t stop and think now about the long-term erosion of the dollar and how we can get past it.

Many experts have come to only one conclusion for combating the destruction of the dollar and that is by investing in gold. The dollars that are deposited and saved in a money-market account will progressively lose value every year. Actually, monies deposited into a simple savings account in 2000 have lost an inconceivable 25% of their purchasing power since then. On the other hand, if those savings were denominated in gold, the wealth would have not only been protected but increased. It is understood that this trend will carry on as well as pick up the pace. You best bet for your economic outlook is to cash in earnings every now and then and save them in precious metals. If, after reading this, you come to the right conclusion, you will not save the bulk of your savings in any currency because when compared to them, there is no shortcoming when saving in gold bullion!

There has to be a way out of this mess for investors as well as private citizens looking to preserve their wealth. The global economy is shaking down all who engage in their corrupt way of thinking, yet gold bullion investment still offers a way to overcome this horror and maintain the wealth we so diligently have tried to reap profit from.
Why is gold bullion investment still a top choice?

For starters, the U.S. dollar is essentially and technically very weak and could experience a radical fall. On the other hand, other countries are unwilling to see their currencies appreciate and are counteracting the present fall of the U.S. dollar. With this in mind, we just might already be in the early moments of an enormous global currency debasement, which may see tangibles, and most particularly gold reap the benefits it is entitled to.

Secondly, numerous professionals consider that, when the retail investing public wakes up and realizes what is right in front of their noses, they will search for an option that does not include paper currencies and financial assets, thus creating a mammoth investment claim for the precious yellow metal. In a situation like this, it just might be practical and wise to own gold bullion as well as have a stake in select mining companies.

The financial deterioration in the United States is another great reason to turn to gold. Within just a few years, the United States Federal Government budget surplus has been altered into an unimaginable deficit which is not going anywhere anytime soon. Simultaneously, the existing account deficit has attained levels which traditionally foreshadow unrelenting failure for the United States.

Monetization is the name of the current game which, ultimately, only benefits the precious yellow metal. The lawmakers within the United States are concerned about the deflation scenario given the extraordinary debt in the United States. Federal Reserve Chairman Ben Bernanke is on record as alleging the Fed has the facility to issue new currency and will use it to fight deflation, should it be required. Copycat countries are pursuing in America’s footsteps and global money supply is precipitating. This is generally consistent with an atmosphere which makes gold shine brighter than usual.

Mine stock and customary demand are experiencing a gap which seems to widen every year. The yearly gold mined is roughly 2500 tons with traditional demand (jewelry, industrial users, etc.) continuing to go beyond this by a significant margin for a number of years. Some of this deficit has been satisfied by gold recycling, but selling from various central banks has been a crucial resource of above-ground stock. Not only is the gap widening, but the supply of mined gold will most probably lessen in the next three to four years. A mixture of traditional demand which will persist in going beyond mine supply, buying driven by ongoing world-wide economic shortcoming, and an anticipated abatement in mine supply, will more than likely generate enormous mid-term shortages. Mine supply will be reduced in the next several years, without regard to gold prices, because of a swing away from high grading and the expected depletion of actual mines as well as issues related to the environment.

Central Bank Gold is working to satisfy the stretch amidst supply and demand. They have been activated mostly through the leasing system, which expedited producer hedging and financial conjecture. There is proof that between 10,000 and 16,000 tonnes (could even be between 30-50% of all Central Bank Gold) is presently in the market. Bullion banks are the counter party in the transaction and are responsible for the reimbursement to the Central Banks.

Interest rates are rather low which means there is not adequate momentum to generate higher prices in the out years. Accordingly, there is inducement to hedge while, at the same time, a reduction in their existing hedge positions which, conclusively, is leaving the market with less of the precious metal.

Escalating gold prices and low interest rates put off financial guesswork on the short side. When gold prices were incessantly declining and financial speculators could access Central Bank Gold at a nominal leasing rate (0.5-1% per year), sell it and reinvest the profits in a high yielding bond or Treasury bill, the trade was regarded as a lay-up. The majority of the investors were in on it and currently there are many stale short positions, which must be satisfied with real purchases. Nonetheless, these kinds of trades are no longer necessary with declining interest rates and rising gold prices.

The central banks are approaching a position where they will be unwilling to make gold more available to the market. For example, far Eastern central banks are amassing gargantuan quantities of US dollars while, at the same time, believed to be gold patrons with the goal of branching farther from the US dollar.

The popularity of gold is rising. Countries that are entering the vanguard of the economic setting are perceiving gold with a much more optimistic attitude. Important developing countries such as China, Indian, and Russia have been acquiring gold. Indeed, China with a population of 1.3 billion people currently set up a National Gold Exchange and slackened control over the precious metal. Within a couple of years, demand in China is projected to ascend relentlessly and could reach 500 tons.

The belief that gold can and should be money is Gold as money is achieving acceptance globally. Islamic countries are evaluating a currency sustained by gold (the gold dinar). The new President of Argentina recommended, throughout his campaign, a gold backed peso as a remedy for the financial devastation which his country has endured, and Russia is contemplating an entirely convertible currency with gold support.

The restricted size of the overall gold market bestows remarkable leverage. All the physical gold in existence is valued somewhat above $1 trillion US dollars while the worth of all publicly traded gold companies world-wide is unbecoming at $100 billion US dollars. When the fundamentals eventually promote a strong flood of capital towards gold and gold equities, the trillions upon trillions worth of paper money could thrust both to perplexing magnitudes which is why gold bullion investment remains the top choice here in America as well as throughout the world.

Some people have not yet entered the gold market for fear that the best is over, yet the time is still ripe to buy gold bullion. If you’re looking for a true manner in which to multiply and preserve wealth, then you must take the initiative now and jump into the market. It’s not just for Armageddon thinkers who conceal their gold under wooden floor boards.

Since 2001, gold has progressed massively from $260 to its $1,920 peak. Where can it possibly go from there? Some believe a larger gold price correction is in store for the precious metal, bigger than the recoil to $1,600 in September.

Remaining well read and calm are the only ways to make wise judgment calls. Most of the reasons gold has increased in the past ten years are still in effect: the gold ‘rush’ reflects restlessness about the ability of the United States to lessen its budget deficit, the Federal Reserve’s easy money strategy, the opposite relationship that gold has to the dollar, and yet another impending dose of Fed quantitative easing will continue gold’s rise to the top. Gold is perceived as a hedge against all currencies and, apparently, the belief is that the more dollars you generate, the more you debase the dollar thus making gold rise higher. The quantitative easing of 2009 drove gold from $900 per ounce to $1,200, animating the market’s state of mind.

• Even Barrick Gold, one of the world’s largest mining companies based in Canada, incremented $5 billion to reinforce its gold hedges so that it would be completely open to the changes in the gold price.

When gold reached $1,300 an ounce in September 2010, central banks such as China, India, Russia, and Thailand continued purchasing gold reserves. The strategy here is that central banks are searching for manners in which to curtail dollar exposure and have been buying anything the International Monetary Fund does not want. Not only are the governments in India and China taking over the global gold market, but also regular citizens have realized the importance of this trend. China is currently the world’s main gold producer, and its five-year plan is pushing its citizens to buy more gold. They can do so in two ways: on a planned Pan Asia Gold Exchange or in gold stores all over China, where buying gold jewelry has skyrocketed. The previous year, the shopping mall Caibai in Shanghai yielded $1 billion in gold bar and jewelry sales.

If the other side of the world realizes that gold is still cheap enough to profit from, we must heed their actions and also understand that it is still an ideal time to buy gold bullion now.