The figures shown in ‘The US Problem Explained!’ reduced to a pretend household size, are alarming.  The conversion is of course arbitrary and very broad-brush.  Nevertheless the scaled-down figures give a much more understandable idea of the problems facing the US.

The US Problem Explained!

Here is why S&P downgraded the US credit rating.

• US Tax revenue: $2,170,000,000,000
• Fed budget: $3,820,000,000,000
• New debt: $1,650,000,000,000
• National debt: $14,271,000,000,000
• Recent budget cut: $38,500,000,000

Now let’s remove 8 zeros and pretend it’s a household budget

• Annual family income: $21,700
• Money the family spent: $38,200
• New debt on the credit card: $16,500
• Outstanding balance on the credit card: $142,710
• Total budget cuts: $385

Now that you see these figures, I am sure you will understand why I prefer gold to US dollars.  If you feel you have missed the boat on the ten year bull market in gold, you should read ‘A Golden Mulligan‘ which I have just added under Articles.

Ian Watson

While my website was being prepared, I kept a particularly impressive article in the November 21st issue of The Economist.  As you will see it argues very strongly that there should be more investment in agriculture.  To read the article click here.

Ian Watson

Richard is well known for his great enthusiasm for gold as a key long-term investment. There are many sceptics who do not share his views and, at times, it can be very tempting to cut your position. However, Richard’s resolute insistence on staying in the yellow metal for the long-term has proved to be a great help to me. Over the last ten years gold has increased in value every year. My trusts have invested one third of their assets in gold.  Richard’s daily comments were one of the influences that persuaded me that it would be a good idea to found Galahad Gold.

Although we have never met, I look on Richard with great affection. I recommend Dow Theory Letters to you.

Ian Watson