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And when you add the fact that the US household financial balance sheet has been falling deeply and steeply into the red ever since the early 1990s, you have the potential for a debt crisis.

All this gloom with no facts to back you up. It's getting to be a habit.

Doesn't look too bad to me. Maybe you have some different facts?

In addition, as I already mentioned, disposable personal income has not kept pace with the interest we have to pay on our massive debts.

Source?

The asset bubble of the late 1990s allowed Americans to sustain their extreme level of debt for a while, and then the FED manufactured the housing bubble to sustain our debt once the bubble of the late 1990s popped.

Extreme level of debt? Sounds scary!

At some point we will have to pay the piper, and as far as I can tell, when that day finally comes, it won't be pretty.

We know, angels with magnets pulling gold to $1650.

P.S. since you won't (can't?) back up your assertion (lie?) about "Goldstocks paying better dividends than most other investments for the last five years" I did the work for you. Your beloved "AMEX GOLD BUGS INDEX (^HUI)" consists of 15 stocks. 7 pay dividends ranging from 0.1% to 2.1%. 8 pay no dividends (that'd be 0.0%). I couldn't find the weightings of the components, but if they're equally weighted, your index pays about 0.44% in dividends.

Unless you're comparing that to gold (0.0% yield), I'd say your assertion (lie?) was off just a bit.

I think that is a wrap - game, set and match. :)

There is a case for gold (well gold mining stocks, not gold itself), because historically its price movements are uncorrelated with other equities, and a good diversifier. Incorporating it as about 5% of your equities portfolio makes some sense. Do I bother with doing that however? The answer is no. It isn't worth the trouble for me.

==Extreme level of debt? Sounds scary!...All this gloom with no facts to back you up.

"In addition, as I already mentioned, disposable personal income has not kept pace with the interest we have to pay on our massive debts."

=Source?

==Unless you're comparing that to gold (0.0% yield), I'd say your assertion (lie?) was off just a bit.

They are not even close to being equally weighted. BTW, 2.1% beats the SP500 average yield. There are a number of other gold stocks that beat this average. So when you combine gold stock appreciation with yield, gold blows away the major indices. Any questions?