Debt Ceiling Delusion Awakens the Silver Bull

The Debt Ceiling Delusion

Written by Brittany Stepniak
Posted October 17, 2013

When you can't count on Congress and Big Government, you can always count on the Fed to step up to the challenge.

That is, of course, if you don't mind paying $6 for a gallon of milk, a carton of eggs, a loaf of bread, or a gallon of gas... which is what we're likely to see down the road, as the Fed continues to destroy the purchasing power of the dollar.

The Fed's just a one-trick pony on a power trip, with a history dominated by failure and disappointment to prove it.

"But wait!" the naïve cry.

"The good ole' Federal Reserve has faithfully returned time after time (three times, to be exact) to dismiss our economic distress and put our fears and financial burdens to rest..."

"A gallant knight in shining armor amidst all the bipartisan debt-ceiling stalemates, the Fed's printing machine has come to make all our wildest dreams come true, printing non-stop money so that we may live happily ever after!" 

What a joke.

U.S Economy Still Stagnant, Even with Massive Money Printing

Systematically and mathematically, these disastrous policies are failures by design.

Failed rounds of quantitative easing coupled with the government's failure to compromise at the expense of America's working class prove that you are on your own out there.

The foundations of Social Security, stocks, bonds, and real estate are nothing but phantoms of our imagination, founded on a demographic illusion.

Those who have caught on to this idea are likely already precious metal owners; nervous of the Fed's addiction to the printing press and leery of major market manipulation schemes.

However, even gold has been "disappointing" at best. The yellow metal has recently plummeted to a three-month low as the U.S. doctored up another short-term "fix" for the debt ceiling crisis.

Uncle Sam has drafted a proposal that would extend government funding to January with an interim hike in the $16.7 trillion debt limit, according to reports.

The Debt Ceiling Delusion

These short-term solutions are like trying to fix broken limbs by covering them up with a few Band-Aids.

You'd have to be a fool to believe any of these methods could jumpstart a real recovery...

The fact of the matter is both parties are approaching the problem with delusional beliefs that "their way" can avoid an economic catastrophe.

You can't create something from nothing. Without creating real economic growth, it's a lose-lose situation — whether we pay our bills now, or default and pay much more when we get around to paying them later.

Of course, politicians have to engage in some sort of hollow rhetoric to keep the markets under control until the Insiders get all their ducks in a row.

Imagine what would happen if they bluntly told the public that the country's going to hell in a handbasket, no matter what "resolution" comes to fruition?

Investors would spaz and the market would plummet. And you know the "too big to fail" Wall Street Banks aren't about to go down again without a fight...

Surely, you know by now that Uncle Sam is in cahoots with these mega-banks on this (and everything else, really). How else would gold manage to avoid any sort of rally in lieu of an American outlook that is more dismal than it was at the height of the 2008 crisis?

The truth is Uncle Sam is running out of tricks. There's nothing left up his sleeve. That is the illusion.

But precious metal bugs are seeing through it...

 

Technical Analysis Redeems Gold's Reputation

It's no secret that gold is stuck in a bearish trend and, indeed, gold market bears do have the technical advantage. After all, we're looking at a seven-week-old downtrend.

But when you look at the only analysis that really matters here — America's unsustainable spending habits — you'll get over these negative sentiments pretty quickly. At least you should.

Sales and charts show strong support for both silver and gold.

Obviously, resistance is present, but once silver breaches the $25 mark and gold breaks above $1,320, there's just no telling how high they're capable of climbing...

Early this week, prices got rejected at the resistance level, meaning prices will probably fall towards new lower lows. However, the big picture analysis remains optimistic for gold and silver bugs.

According to a GoldSilver.com article, "Race to Debase 2000 — 2013 Q3 Fiat Currencies vs. Gold & Silver," fiat currency has lost an average of 78.16% of its value compared to silver.

And it's not just the U.S. dollar I'm talking about here. Fiat currencies from all around the world have been affected.

Take a look...

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If you had purchased silver in the U.S. in 2000, it'd be worth 306% more today.

Better yet, if you'd bought silver in Zimbabwe, you'd have banked yourself a pretty solid 3,842% gain.

Outsiders the world over are wising up to the paper-trading scheme. They see gold and silver as more rational "stores of value" in light of the exponentially worsening decay of our fiat monetary system.

Investors who aren't part of the Insider Banking Elite, but who are still trading in this market — looking to JPMorgan and other Insiders for direction — must be crazy...

But don't think that you can't acquire sustainable wealth just because you're not one of these infamous Insiders. It just means you have to take a different route to get there.

And we've got a few big-name billionaires who want to share their Outsider secrets to wealth-building success with you...

Outsider Club subsribers can check their email for more details...

Farewell for now,

Brittany Stepniak Signature

Brittany Stepniak

Brittany Stepniak is the Project Manager and Editor for the Outsider Club. Her “big picture” insights have helped guide thousands of investors towards achieving and maintaining personal and financial liberties while pursuing their individual dreams in lieu of all the modern-day chaos.

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