Part 3 – Signs To Look For In The Pre-Crash Economy – Precursors To Skyrocketing Gold And Silver Prices

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This article was allowed to be reprinted with permission from http://theheartofgold.net.

I’ll try to keep this short since you will be doing a lot of reading and analyzing, so I will respect your time.

Shadowstats.com contains the pre-1980 way of calculating both unemployment and inflation rates in the United States. While you may want to read their site, the short of it is:

  1. Inflation is about 10-11%
  2. True unemployment ranges from 19-22%. This includes underemployment.

For US debt and the deficits, I strongly recommend USdebtclock.org. Pay special attention to the nations that loan us money. When you consistently see that foreign countries have stopped or reversed their loans to us, that is going to hurt us. That means that the United States *must* print money to finance the government. Inflation kicks in.

Another figure to watch is food stamp recipients. This is the number of people on government aid who need food money, literally. In a thriving economy, this number should be going down. It isn’t. It’s been going up since 1.5 years ago since I’ve begun tracking it. I still thought it was 46 million. Now it’s at 48 million plus. Not good.

Keep track of 30-year fixed mortgage rates. I use bankrate.com for that. When 30-year mortgages cost 5-6% interest, then take a stronger look at real estate prices. This will cause a “snap” in our economy as people will just stop borrowing to buy real estate. Prices on homes come down and that whole mess from 2008 starts again…

Sign up for a free account at the U.S. Treasury Direct website. You don’t have to buy anything from there but you want access to their historic and current TIPS charts.  TIPS stands for Treasury-Inflation-Protected-Securities. These are US bonds that are designed to increase in value against inflation. If investors think inflation is 10%, they pay 10% more upfront now to reflect that. For me, I found that 5-10 year bonds were about 10-11% more expensive. This is despite official CPI inflation at 2.5%. Obviously, there is a disconnect.

I DO NOT RECOMMEND investing too much into TIPS or any government bonds. This is because if the United States goes so broke that they declare bankruptcy, you will lose all your money invested. The American government, believe it or not, will do every thing in their power to protect everyone from the collapse, but the debt and ideological thinking in this country is too rigid and massive to perform any meaningful change.

While this may sound bad and depressing, we will rise above the challenge and come out stronger. Hopefully, gold and silver will be restored as some kind of standard for the world’s economic system so this type of collapse doesn’t occur ever again. In the mean time, I hope you found this 3 part series helpful. If you’re still interested in investing in precious metals in a tax-protected way, fill out the form on the right or below to get a gold kit. My gift to you for taking the time to educate yourself. It’s certainly changed my point of view and really made me think about what is really important in life.


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