5 - 4 - 3 - 2 - 1. . . Debtination

I'm reading an article by Paul B. Farrell of MarketWatch and I have news for you.Gold is no longer just an inflation hedge, it's a hedge against, what a recent Bloomberg article refers to as, "The Great Reckoning" - a time when massive debts come due.

In 2005 the U.S. debt ceiling was $7.8 trillion.In 2010 that number has ballooned to near double at $14.3 trillion.That number represents 84% of the U.S. GDP.When that number hits 90%, KABOOM! Farrell says, "kiss your retirement goodbye."Thank goodness for social security.Oooops!Sorry, Farrell says that's another time bomb waiting to Debtinate.

And when is this fateful event to occur?With U.S. debt projected to reach $18.8 trillion by 2014, let's do some math.If my math background serves me correctly, $15.3 trillion of debt represents 90% of current GDP and it really doesn't look like GDP is going to grow faster than debt accumulates.So, could it happen this year? 2011? Were the Mayans right to suggest we don't need a calendar dated beyond 2012?Then what?

Now, let me say, the news isn't all bad, some of it's worse! But, trust me, nothing is hopeless.After that ticking time bomb Debtinates, some 19 subsequent explosions are feared to follow.Commerical Real Estate, Social Security, the Dollar, State Budgets, Consumer Debt and the list goes on.

Now really, is it any wonder worldwide gold demand is going through the roof?In my last article I cited information showing central banks around the globe are buying gold.In 2009, once net gold sellers, world banks as a whole, became net buyers.Shouldn't that tell you something?

Let me leave you with one question.If bread was a $50 a loaf, how long could you live on the hard-earned savings and retirement funds you have accumulated?Put this into perspective, with history to guide us, I suggest that whatever a loaf of bread costs today, in terms of gold, will be the same in 2 years, 5 years or 10.So why not put at least a little gold in your IRA or other savings and retirement accounts.

Therein lies your hope of surviving -- Debtination!