The China Button

So now more than ever, China and it’s relations with the US are an often talked about subject. I hear alot of talk that is ingorant of the true underlying relations the two countries share.

The first myth is that China has stole our jobs. Not true. China simply has a large skilled workforce and let me emphasize work! There is no other place in the world that has endless factories with employees who will willingly work 16 hour shifts to get the job done on time, and on budget, no where. America’s factories simply have too many wage disadvantages, labor laws, and unskilled workers. We have been out of manufacturing too long now to have been exposed to the new technologies. The factories we have left rely heavily on machines and automation to keep up with Chinas quick pace. Without China, there would be alot fewer products, and far more expensive products.

China is buying up America is another myth. The truth is that China is buying our debt. To the tune of 3 trillion dollars. Who loans anybody 3 trillion dollars? What kind of collateral backs up that loan? This is the reason behind Golds recent bull run. This will surely drive gold past the $1600 mark. China is fed up with Washingtons reckless printing and spending scheme. The world is watching as the dysfunctional politics play out on the center stage and everyone takes a spin at how to curb out of control debt crisis from pulling us back deeper than the great recession.

Watch your stocks and your dollars, this could be the big one. This could be a long, slow, steady downward economic trench we are heading to. The rising inflation, interest rates, gas prices, etc. will make the last recession look tame. I understand why S and P gave the US a poor credit rating. Our best option is to default China or simply print 3 trillion dollars and monetize the debt. We are not going to not pay them. So what will Washington scramble to do, once their plan to lower spending fails? They will turn on the printing presses and create enough money to pay China. That will send a signal around the world that the dollar is bad paper, and the markets will crash, the dollar will crash, and our economy, which is based on the dollar, will crash too.

Now more than ever, Gold looks like it could eventually surpass the $2000 mark. Stay tuned to the latest business and world news as it is critical to understand what is going on if you hope to survive this round of economic turmoil.

We really need to start looking at monetizing the debt and getting it over with as a viable option, in my opinion. We have to put limits on the federal governments spending, and limits on local governments expectations too. Our taxes will increase signifigantly, and you can bet entitlement programs will be on the chopping block. At some point, the phrase “it’s not what your country can do, but what you can do for your country” is going to be reborn in Washington. We are going to pay.

It is our own fault, for wanting everything. We need to be more reserved and less materialistic. We will have to pay this off and learn the lesson. We vote for them, we elect them, we direct them. We need to find balance, we have to stop the free ride mentality. We have to stop paying people to not work and sit on their asses all day.

Bottom line is, we have to swallow our own pill. No more stimulus games from the fed, no more increasing the debt ceiling. We need to get back to work. Everyone in America should share this burden equally. This one here is a game changer. This is going to be the beginning of the Change america voted for in 2008. I guess in the end, even though it was not brought on in a way intended, Obama did bring America change. By not doing all of the things he promised, he pushed us over the edge. We are currently in 3 wars, aiding several other countries in their recovery from natural disasters, paying a large portion of our society to not work or be productive, and footing the bill for most healthcare, to name just a few.

An economy, to remain successful, must have realistic expectations and practices. I think that we will be forced to change and hopefully, we will do so swiftly and confidently, so that we can get back to being a country that is realistic and constantly moving forward.

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About CT Gold Buyer
Owner of CT Gold Buyers in Wallingford, CT. and USA Gold Refiners.....

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