Porter Stansberry’s Theories of Relativity

By Karen Roche The Gold Report July 9, 2010

Every country gets out of trouble by basically robbing its citizens by taking away their purchasing power, but that is what has to be done in the world as it exists today ‘These governments can cut their budgets and live under “austerity,” but all that’s really going to do is slow down their economies even more and make them even less competitive globally. That’s why gold and silver are such important hedges for people to have’. ‘The U.S. is just no longer a big enough economy to be the world’s only reserve currency any more. This entire system is going to collapse, and there are two compelling reasons why. First, the U.S. government clearly cannot afford these debts. Total government debt outstanding has surpassed $13 trillion; more than 100% of GDP. There’s no question that it can’t be repaid. But secondly, there’s also no question that the world economy needs other reserves because the emerging markets have grown so large and other economies are now much bigger in relation to the U.S. than they were 20 years ago. We need a whole new standard of reserve currency’. Read full article here.

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