GIVE US THE ANSWER! The only problem, there is no answer. No country in the world has been able to spend itself out of a debt spiral. We have asked the greatest detectives of all time, none other than,  Joe Friday, Charlie Chan, Dr. Henry Lee, Sherlock Holmes, Hercule Poirot, Philip Marlowe, Ellery Queen and last but not least, the well know investigative reporter for the Daily Planet, Clarke Kent to locate the only country that survived a debt spiral. At this time we are not happy to admit that they have no answers. The DNA of all the debtors has been scrutinized to no avail, they have not come up with an answer.  Even when their economies were growing, most countries were running deficits. This is the result of fiscal irresponsibility. It is similar to individual spend and don't save philosophy. Bankruptcy is the only option. Massive inflation will be the fore runner of the demise of the U.S. dollar as a reserve currency.  

The various states are in the same position as is the federal government. There is only one difference, the states can't print money. Wait and see what happens next. California, Michigan, New York, New Jersey, Connecticut, Rhode Island and the rest of the Socialist States of American  will come begging, hat in hand, to the Federal Government for a bailout. Will this happen? It most certainly will.  The Federal Government will have to acquiesce. Why?  Their union friends in state and local government will force them to come to the rescue. (as we have said time and time again, Obama and his socialist allies have one goal in mind, "to unionize the workforce and turn our Country into a Socialist State similar to the quagmire of Cuba and Venezuela. Don't laugh, watch what he does, not what he says. (Honduras is a perfect example. Secretary of the Socialist States of Americn,Hillary Clinton  is a left wing radical from the 60's, her and Obama, another left wing radical community organizer make a perfect socialist team.  They are using the heavy hand of the United States to diminish and insubordinate a Latin American Democracy on the world stage)  Back to the states, it only takes one time to acquiesce, the door will open for the rest of the states to enter the dollar giveaway. This will trigger a massive flight from the dollar,  it is now in its initial phase. The dollar is losing its value by a 1000 cuts at a time(Chinese Water Torcher). The printing presses will start to run 24/7 to satisfy the stately obligations. China will inevitably throw in the towel and all hell will break loose in the gold/silver markets. Stratospheric levels of the precious metal, which have never been seen before, will signal the end to the once almighty greenback. Do not believe for one moment that this will not happen. The script is being written and choreographed by Geitner and Bernake. There is no doubt that Goldman Sachs and the Wall Street Crew are on board for this eventually.

China is not a bit player here, they have teamed up with Russia, Saudi Arabia and Japan. To them the dollar is an albatross around their neck. The only way they can come out whole before the dollar avalanche is to buy gold with dollars. This is a one to one play. As the dollar drops 1%, gold will rise 1%. As they currently liquidate dollars and convert them to gold at $1000 per once they have set a base price. Their plan is to liquidate half of their one trillion dollar hoard before the door closes and convert them into gold before the floor caves in. The end result will come when gold reaches $2000 or more, the remaining 500 billion dollars in their coffers will  be worth 50% or less in dollar terms, but the dollars they sold previously and converted to gold are now worth two to three times as much. Quite an arbitrage play. Those Chinese are very smart you say. You bet, Join them, it is better to be playing with a bankroll, than with a HOPE and prayer.
We know this will play, the script has been written. The socialists do not want to drill for more natural gas (yes we can be self sufficient in 2 or 3 years), they do not want to embrace the new modular nuclear power plants, We forget when the last one was built. They are against importing ethanol from Brazil who produces ethanol from cane. Our corn based ethanol takes 8 times as much energy to make a gallon of ethanol.  This was the culprit in corn prices to sky rocket the past couple of years. And to top it all off, those socialists running our Federal and State governments will never think of laying off one worker. This is prima facie evidence of the socialist ram it down the taxpayers throat philosophy. The socialist will never propose a tax cut, they are against the free market capitalism that built this Country. They do not want to admit that capitalism, properly regulated, not over regulated is the only way out. BUT WE WILL NOT STAND IDLY BY AND TAKE IT LYING DOWN. COME 2010 THE SHOT HEARD AROUND THE WORLD WILL BE CAST AT THE BALLOT BOX.