NIA Calls U.S. Recovery 'Phony,' Recommends Buying Gold
March 11, 2010 by Personal Liberty News Desk
Even though most media commentators claim that the economy is turning around, the National Inflation Association (NIA) has said growing imbalances make it impossible to achieve a sustained recovery.
In particular, although U.S. consumer spending was up 0.5 percent in January, the national savings rate fell to a 15-month low of 3.3 percent. However, in order to spur a lasting recovery, the NIA believes the savings rate should exceed 10 percent.
The organization also points to decisions being implemented in countries such as Canada, which is trying to cut its government spending and reduce budget deficit in order to achieve a balanced budget by 2016. Similarly, Australia’s central bank has raised its benchmark interest rate to 4 percent.
According to a NIA press release, "If the U.S. doesn’t follow in the footsteps of Canada and Australia, instead of Zimbabwe, we could see massive emigration out of this country [as a result of hyperinflation].
Moreover, the NIA says that as the U.S. dollar is declining, China will be building up their gold holdings in order to ensure the stability of its foreign currency reserves. This will drive gold prices up, and provide great investment opportunities for Americans who are concerned about shielding their wealth and assets from the ravages of inflation.
"It is only a matter of time before the world wakes up and realizes the U.S. economic recovery is phony and the only way our debts will be paid back is through monetization," the release concluded.