US Middle Class nears extinction, Looks for gold,silver to rescue

Will the middle class disappear and become the "serf" class in the United States? Many economists believe that a recovery in our economy is impossible for years, maybe even decades. Combined with inflation and a falling dollar, unemployment and lower incomes, the average American family is economically under attack.

Whether we like to think about it or not this may be the calm before the storm. Jim Sinclair, highly esteemed economist and precious metals expert, was quoted as believing that the economy is not going to have a significant recovery for more than a decade.

He believes that the middle class will cease to exist and that the price of gold per ounce could go over $12,000. With wall street "low balling" gold price forecasts at around $1700 per ounce who are we to believe?

Let's look at a few economic predictors and you will be able to discern yourself the truth from the rhetoric and make decisions that can help insulate your family from the financial woes most Americans will face in the near future.

Let's begin overseas in Europe. The European Union is trying to keep afloat economies like Greece, Portugal, Spain and Italy. This European Union a on the verge of collapse with it will go the floundering Euro. Germany has been asked to pour money into Greece to prevent the country from collapsing.

Germany did so, with the agreement that Greece would make the changes necessary to "fix" their ailing economy. Now a year later, Greece needs more money, and the German citizens see their hard earned tax dollars going to a country where the people have refused to change their lifestyles to give their economy back its life.

To make matters worse, Greece doesn't want the money from the European Union, they would rather go bankrupt and default on their debt than suffer the necessary lifestyle changes. Portugal, Spain and Italy appear to side with Greece and would rather default on their debts than be forced to take money from the European Union.

In the past, the strong European economies hid the weaknesses of the poorer economies in the Union. Now the EU is unraveling. There are too many countries, governments, values, cultures, languages and beliefs to sustain this delicate union. So the economy of Europe is in trouble and with it will go the Euro. With this crisis will be the flight to gold and silver!

What about the US dollar then? This June ends the refinancing of the federal debt. Our government has been printing money to pay the interest on the US debt. This "extra money" enters the economy making the dollar worth less and less.

- CommodityOnline.com, 27 June 2011