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July 28, 2011

The World Doesn’t Want To Lend Us $2 Trillion A Year. We Can’t Afford To Pay It Back.

The dollar is starting to fall too, although not quite through the floor yet. But it is at a record low against the Swiss franc, the Japanese yen, the New Zealand dollar and it’s almost at a record low against the Australian dollar.

So the real crisis is coming, not because we fail to raise the debt ceiling, but because we succeed. That’s what the market is worried about—that Congress does raise the debt ceiling and it does so without meaningful reductions in government spending. The world doesn’t want to lend us $2 trillion a year. We can’t afford to pay it back, or pay back what we’ve already borrowed. - in index universe

Tickers: ProShares UltraShort 20+ Year Treasuries ETF (TBT), iShares Barclays 20+ Year Treasury Bond (ETF) (TLT), iShares Lehman 7-10 Year Treasuries Bond ETF (IEF), SPDR S&P 500 ETF (SPY), ProShares UltraShort S&P500 ETF (SDS), Bank of America Corp (BAC), JP Morgan Chase (JPM) Citigroup (C), SPDR Gold ETF (GLD), IShares Silver ETF (SLV)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.
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