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URL:  http://boards.fool.com/if-there-is-one-huge-problem-the-us-faces-it-is-26426181.aspx

Subject:  Re: "US out of control" - Jim Rogers Date:  2/28/2008  1:13 PM
Author:  TMFeatnbybears Number:  33 of 847

If there is one huge problem the US faces it is Nation Debt soon to be coupling up with the flow of Baby Boomers who will be hitting the Social Security offices going "show me the money". That will mean massive new debt being added that will make Iraq look like the Granada invasion.

Of course nobody knows what to do with it, how we will fix it, how we can change our ways and what will happen once it all merges together.

But you know what?

US manufacturing and service industries will continue. The screaming about the dollars devaluation ...?.... It was the exchange rate that allowed Japan to become a super economic power in the 1970's ... now the rolls are reversed. I don't believe we have even conceived of the impact the present exchange rates will have on US business ... look at HURC ... smok'n hot due to the exchange rates.

As for the articles statements

And he also warned that it “made sense” if global competition for resources ended in armed conflict.

Mr Rogers told delegates to the CLSA investment forum that the prices of all agricultural products would “explode” in coming years and that the price of gold, which hit an all-time high of $964 an ounce yesterday, will continue its surge to as much as $3,500 an ounce



The concept of global competition for resources ending in armed conflict is very real. Where would it happen? All those Ex-Soviet countries that Russia is pulling the energy strings on who also have Gazprom’s pipelines running through their countries. Then of course the developing African nations will still have unstable governments to try and protect assets.

As for $3500 gold ... I would be head'n for the mountains with my gold pan :) I read somewhere that it is estimated 95% of the worlds gold is still undiscovered. Gold is a psych play .... Iron is a real mineral. Heck, at $3500 an oz I bet you could pull gold out of sea water at a profit and get the desalinated water as a side benefit.

And all agricultural products would “explode” and so will companies like Monsanto and Cat, Harvester, fertilizer companies, irrigation companies ...... The US exports more, more jobs, better wages and the equalization cycle begins again.

I grew up with $35.00 an oz gold .... Now at $964. That is an increase of what? 27 X's. The author is claiming we will all die if it increases X4.

Economies are resilient and self adjusting over time. No need to get a cabin in the woods stocked with spam and sleep with an M16 :)

Bears
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