Sunday, March 27, 2011

Federal Reserve Bank President Warns: United States At the Financial Tipping Point

Federal Reserve Bank President Warns: United States At the Financial Tipping Point

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The U.S. debt situation is at a "tipping point," Dallas Federal Reserve Bank President Richard Fisher said on Tuesday in a speech at the University of Frankfurt earlier today and urged the U.S. central bank to refrain from any further stimulus measures.

"If we continue down on the path on which the fiscal authorities put us, we will become insolvent. The question is when,"

Fisher is recognized by most knowledgeable economists as one of the most hawkish policymakers within the Federal Reserve, said that although debt-cutting measures would be painful, he expected the U.S. to take the necessary actions.

With all do respect to Mr. Fisher, to make serious cuts in the Federal Debt both houses of Congress would have to approve serious cuts in Defense spending and social programs that they have not been even willing to discuss.

I agree we are at the tipping point. We’re in danger of seeing a devastating U.S. Dollar panic/crisis that triggers an international monetary collapse that will make the credit and banking crisis that took place in 2008 and 2009 look like a walk in the park.

The thing I want you as a subscriber to the Gold and Energy Advisor to recognize is that I’m not the only analyst out there warning of a impending U.S Dollar crisis, now we have a Federal Reserve Bank President voicing the same warnings.

I was interviewed to day by a reporter with the Pittsburgh Gazette earlier today and he asked a key question...

“With Gold and Silver approaching all time highs, should investors buy precious metals now or wait for a pull back?”

If you don’t own any precious metals or rare coin investments right now it would be a smart move to buy atleast 25% of what you intend to place in your portfolio. If the market pulls back you can add to your position but if the precious metals break out to new 12 months highs, I recommend buying another 25%. A break out could be the beginning of a new leg of the Bull Market.

We could easily see $1750 gold and $45 silver at sometime later this year. The danger of course is of course that Mr. Fisher is right on the danger and wrong on his belief that Washington will make the necessary spending cuts in time to prevent a U.S. Dollar meltdown. In which case $2500, $5,000 gold could come in a matter of weeks. The danger is extreme and the reason I tell every investor to put 20% of their investment portfolio into rare coins and precious metals.

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