The New CS Board

[jumanji0881]

How high can it go ?

My comment: McEwen suggests that the national debt could rise to $26Trillion in 2022. I'm expecting $20Trillion in 2015 (we're only $3.5Trillion short of that now). The problem with higher debt numbers is the bond market. The bond markets will rebel at some point and demand higher rates to compensate for the risk of holding sovereign debt (Greece and Spain are cases in point) and at that point it's game over. Japan is near that tipping point as well as they will not be able to fund their debt internally much longer. And with rates low here and in Japan, it would not take much of an increase to blow the annual deficits out of the water.

Gold To Continue To Rise On Back Of Failed Government Attempts To Bail Out Economies: McEwen : http://www.kitco.com/reports/KitcoNews20121210AL.html
Excerpt:
“Around the world, governments are trying to bail out the economies and it’s not working,” said McEwen. “We’ve had trillions of dollars pumped into the U.S. and have seen very anemic, weak recoveries in the economy.

“The gross national debt of the U.S. running from 2001 to present, and this is just the government debt, and it is just about $16 trillion,” said McEwen. “It’s doubled since 2008. During Obama’s term, he’s created more debt than any president before him.”

McEwen pointed to recent reports from the White House that U.S. debt will continue to grow, rather than shrink.

“The White House in February said that debt in the U.S. in 2022 will be $26 trillion,” said McEwen. “Now I’m quite confident in politicians around the world and their ability to underestimate where they’re going to be, and it’s not any different over here.”

While the U.S. has seen their debt grow exponentially, McEwen says they’re not the only country that has been trying to get their economies going by such methods.

“The thing you have to keep in mind is that it’s not just the U.S. that’s the culprit, it’s every government around the world that’s employing the same mechanism to try and kick start their economies and their debasing their currencies,” said McEwen.

During his speech, McEwen provided statistics showing the steep drop in global currencies compared to gold.

“The way that I think everyone should look at it is how much the currencies have depreciated against gold,” said McEwen. “If you look at our Canadian dollar in the past 11 years it has lost 76% of its value against gold. The U.S. dollar has lost 85% of its value in the last 11 years against gold.”

The statistics also showed that the Euro has dropped 78%, the Chinese Renminbi 80% and the British Pound 83% as well during that 11 year period.

As McEwen continues to see these trends from governments across the world, he stands by his gold price call of $5,000 an ounce gold.