"Greater Depression" More Bullish For Gold Than The 1930's

In 1930, the world was on a gold standard, with (relatively) strong, solvent economies in most of the world – with the exception of Germany. At that time, no economy was stronger than that of the United States, despite the necessary economic correction it suffered as punishment for a prior period of economic excess.

Today, most of those same economies are swamped with higher debt levels than at any time in the history of these nations – with no economy being more insolvent than the United States. At the same time that the wealth-generation of the U.S. economy has been stripped away through the dismantling of most of its manufacturing base, it is forced to bear a debt-load far greater than that borne by the other 95% of the global population combined.

Obviously the combination of exponentially rising debts, ever more-reckless spending, and relatively no cash flow for this government must end in default and insolvency. Current policies (and propaganda) of the U.S. government are designed purely to hide the mountains of debt, and delay the inevitable default. The United States is long past the point where economic salvation is possible, through any combination of fiscal restraint and feasible, future economic growth.

It is only through every more-distorted economic “statistics” that the U.S. government has been able to hide its insolvency from its many, large creditors. Such deceit and concealment is rapidly coming to an end. As the sources for yet more U.S. borrowing totally dry up, the U.S. government has now been forced to the ultimate act of economic desperation: printing money to pretend to “pay” its bills.