A real financial tip: Don’t buy anything you can’t afford, and hold onto whatever property you have through this depression. This is not a sale on financial stocks, nor is it a time to be jumping into shallow pools of capital. This is the beginning of something unprecedented and horrible for this country, and the media is making light of it. The Federal Reserve is knee-deep right now, and it’s only going to get worse over the next two years. If you look at the economic indicators, there is no avoiding rough times ahead, and the people may end up burning down the Fed’s doors by the time everything they have done comes to light. When bond and interest rates start skyrocketing, all hell will break loose, and there will be two choices: massive unemployment or hyperinflation (likely a combination of the two).
The worst thing that could happen: war with Iran. I believe China is trying to bait the U.S. into war with Iran, so that they may become allies with Iran and turn against Europe and the United States. Part of Iran’s political confidence has to stem from some assurance from the Chinese. After China backs Iran in the U.S. invasion, they will then call all of their U.S. Treasury securities, sell U.S. stocks, and leave our economy completely destroyed, which would allow them to realize their long-awaited goal of becoming the world’s top superpower. Our military and economic interests would find themselves penniless and cornered in the Middle East and Asia, and if cool heads do not prevail, we might quickly assume the identity of a nationalist and socialist country, eager to blame anyone but ourselves.
Going forward from the depths of what is sure to come within a score (hyperstagflation and confiscatory tax rates while paying the boomer generation’s debts and entitlements), the important thing to realize is that we already know how to build a solid foundation of self-security. We did it over two hundred years ago, and we need to follow the Constitution back to prosperity. We must learn from history, practice sound economic and monetary policies, and stop repeating our mistakes. For now, the writing is on the wall, and I am eager to wash it off as quickly as possible. The Fed needs to let the market correct itself, and stop prolonging its own demise.
Filed under: economy, Personal | Tagged: china, constitution, depression, economy, Federal Reserve, history, hyperinflation, inflation, iran, laissez faire, Politics, recession, stagflation, unemployment, United States, war |