{"id":3041,"date":"2015-03-09T16:36:31","date_gmt":"2015-03-09T20:36:31","guid":{"rendered":"http:\/\/www.silver-investor.com\/blog\/?p=3041"},"modified":"2018-06-10T10:54:52","modified_gmt":"2018-06-10T10:54:52","slug":"debt-bomb-going-to-explode-in-september-2015-david-morgan","status":"publish","type":"post","link":"https:\/\/www.themorganreport.com\/blog\/debt-bomb-going-to-explode-in-september-2015-david-morgan\/","title":{"rendered":"Debt Bomb Going to Explode in September 2015-David Morgan"},"content":{"rendered":"

 
\nRenowned precious metals analyst David Morgan is out with a new book called \u201cThe Silver Manifesto.<\/strong>\u201d In a chapter called \u201cThe Debt Bomb<\/strong>,\u201d Morgan lays out the biggest problem and the biggest reason to own precious metals. Morgan contends, \u201cBasically, the United States have exported our inflation to every other country. So, for them to stay competitive, they are required to weaken their own currencies for what is called competitive advantage. It simply means if they don\u2019t print . . . their currencies would become too strong, and they would not be able to export. In order to keep trade flowing, these other countries are basically required to do what the U.S. government does, and that is export a great quantity of un-backed paper promises that are impossible to pay back. That\u2019s the crux of \u201cThe Debt Bomb.<\/strong>\u201d It\u2019s going to explode. . . . The basic premises are: You default on the debt . . . or you keep kicking the can down the road, and you continue to debase the currency, which is what governments have always done when it\u2019s a non-backed currency. If you look at the value of the Federal Reserve from 1913 to now, in a little over a hundred years, the Federal Reserve itself will admit that 100 cents is now worth about 4 cents. So, you have lost 96% of the value of the U.S. dollar. . . . That has been a failure, a tremendous failure. That is a collapse in slow motion. Now, what we are really arguing about is what\u2019s going to happen to the last 4 cents of the U.S. dollar. . . . It looks to me that at some point, a tipping point, that you will get an acceleration . . . and things will change dramatically.\u201d
\nOn the Greek debt crisis, will it be forced to default? Morgan says, \u201cYes, and the problem is everyone in power is acting like a bunch of kids. No one wants to be an adult and state the problem clearly. This new regime in Greece actually has. They are the only truth tellers at the political level that actually said we are bankrupt.\u201d
\nOn the price of silver, Morgan says, \u201cWhat is $16 silver compared to $5 silver over a decade ago, and basically they are the same price. Isn’t that amazing, this inflation that nobody talks about. It you take the $5 silver price back in 2003, and you use the true money supply of fiat currency today, hey guess what, it is pretty close to $16. So, in a nut shell, because you are buying the same silver for basically the same amount over a decade ago, it\u2019s really on sale. It is really a bargain.\u201d
\nWhen might the economy and the \u201cdebt bomb\u201d explode? Morgan predicts this fall. Why? Morgan says, \u201cMomentum is one indicator and the money supply. Also, when I made my forecast, there is a big seasonality, and part of it is strict analytical detail and part of it is being in this market for 40 years. I got a pretty good idea of what is going on out there and the feedback I get. . . . I\u2019m in Europe, I\u2019m in Asia, I\u2019m in South America, I\u2019m in Mexico, I\u2019m in Canada; and so, I get a global feel, if you will, for what people are really thinking and really dealing with. It\u2019s like a barometer reading, and I feel there are more and more tensions all the time and less and less solutions. It\u2019s a fundamental take on how fed up people are on a global basis. Based on that, it seems to me as I said in the January issue of the Morgan Report, September is going to be the point where people have had it.<\/strong>\u201d
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