On June 27, 2011 I mentioned my pessimistic outlook for the future. In the short term, I was concerned about how the debt ceiling debate was to end. About a week ago before that, China’s Dagong Global Credit Rating Co. had downgraded the U.S. credit rating. This was generally met with skepticism, but this would not have occurred without some cause. Now that S&P has followed suit, reality has set in. Gold prices shot up by about $100 an ounce as a result.
But that is all short term. In the long term, I am even more pessimistic. I am expecting an economic collapse even worse than that of the late 2000s. I believe it would be wise to convert cash and other paper assets into tangible assets such as silver and gold.