Silver Dollar Values Prices Will Be Skyrocketing While Gold Miners Break Their Backs To Break Rocks!

Sept. 13, 2011 - PRLog -- The Federal Reserve ventured into uncharted territory yesterday when announcing the target for that Federal Funds rate would stay near zero % for 2 additional years. Which will amount to become, at a minimal, four and a half years in duration. However the transfer is precisely the wrong strategy and does absolutely nothing to recover the structural problems of the economic climate. Visit http://silver-dollar-values.com for more silver and gold investing tips.

The market rebounded sharply yesterday around the back of the guarantee of totally free cash in perpetuity. Nevertheless, it will soon be shocked at how little Bernanke’s largess goes towards rectifying our issues. Zero % interest prices can’t make European debt solvent. And two more years of free money won’t automatically repair America’s severely broken public and personal sector balance sheets.

Let’s be honest, nobody was expecting the Fed to substantially tighten financial coverage in the close to future anyway. Therefore, providing a definite timeframe of two years does not include much extra info because it is not far off from what most in the investment neighborhood had been expecting--especially in light of the current weakening economic data. But by punishing savers for a few more years, it will only decrease the cash available to create money goods and only inspire reckless speculation in high-risk property and the perpetuation of rolling asset bubbles. Go to http://silver-dollar-values.net for more silver and gold investing tips.

What's also likely to occur will probably be the economic climate to become completely addicted to artificially produced reduced interest prices. Banks borrow short and lend long and therefore are very susceptible to interest charge shocks, just as occurred throughout the savings and loan crisis in the 80’s and early 90’s and also the credit crisis of 2008. Banks’ assets will be collecting interest on low-yielding, long-term loans that will have been prevalent in the economy for over four years. Those interest prices are actually about five hundred basis points beneath the typical going back to 1970.

But interest rates must quickly substantially rise either due to the overpowering supply issuance of Treasuries in the pipeline or through the inflation that always occurs from totally free money and a $2.9 trillion Fed balance sheet. As soon as rates rise, depositors will earn more than banks’ assets gather, and insolvency will result. Not only will banks' stability sheets be below tension but also additionally the customer and also the government is in for a massive interest charge shock coming from skyrocketing debt services repayments.

Years more of totally free money will result in great economic imbalances, a crumbling currency, increasing commodity prices along with a ridiculously out of control bond marketplace bubble. And that cannot in any way end nicely. Now is a superb time to purchase gold and buy silver. I personally purchase silver and gold bullion coins and keep them in a safe location until I might need them. Visit http://www.silver-dollar-values.com for more silver and gold investing tips.

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