This post serves as a "sequel" to the my earlier post on the Credit Crisis.
The U.S.A. is drowning in debt. The Americans are spending away the futures of their children and grandchildren.
The video below shows just how bad the situation is. I think it is quite frightening.
(This video is the property of "stop spending our future.org")
The Federal Reserves chairman, Ben Bernanke, has just announced another round of stimulus. To put it simply, they just keep on printing the US dollar. The market is flooded with US dollar and this devalues it. Interest rates will remain close to zero for an extended period of time. This increases the risk of asset bubbles forming in emerging markets such as China and India.
Will the US do a "Greece"? I hope not. The US Treasuries still enjoy the highest "AAA" rating.
So how did I protect myself from such a scenario? I predict the price of gold will continue to rise in the future.
I bought 2 pieces of gold coins from UOB last year. A Canadian Mapleleaf gold coin (half ounce) and an Australian Kangaroo gold coin (half ounce). I wanted to buy the Singapore Lion gold coin but the price has already skyrocketed. -__-" sighz...... So I only have 2 beautifully shiny gold coins to hedge against any hyperinflation :)
I also have some commodity stocks such as Noble Group and Advanced SCT (Scrap copper)
Let me know your thoughts by commenting below.
Peace Out :)