Let me preface my remarks and say, yes, I know I write a lot about the financial state of the USA and Europe. The reason being is, our way of life is going to change in a big way if we do not alter the course we are taking. In any case, this morning, we got word out of the ECB (European Central Bank) that they will now buy unlimited amount of bonds in duration of three years or less….So…why should you care what goes on in Europe. Well… the reason you should care is, they are going to do the same thing here in the USA. Today, we got the latest Unemployment figures which are all lies (Not Good) and we hear that Ben Bernanke is ready to print even more money.
As a matter of fact the Fed has been printing money all along. Here in the USA we called it Quantitative Easing or QE. We had QE-1, QE,2 Operation twist 1, Operation twist , 2 and coming soon , the grand daddy of them all, Open Ended Easing. Your next question will probably be – Why? The reason is, our government wants to continue to spend money it does not have. Don’t believe me? The following numbers are not in dispute. We as a country take in 2.6 Trillion in Taxes. We then spend 3.8 Trillion out the door. Tell me where the extra 1.2 Trillion dollars comes from? No BS, no long stories, no, bravado about the full faith and credit of the USA, No Santa Claus, No Obama secret stash, that’s all unvarnished hogwash. The sorry fact of the matter is, we print it or we borrow it. When I say print or borrow, when you can’t sell your debt, we print money to buy it ourselves. Great concept, don’t you think? We are on the runaway train I call The Oblivion Express and no one is driving.
Let me put this another way. Let’s say you have an Uncle Lenny. Uncle Lenny lives in a big house and drives really nice cars. He takes great vacations and appears like he has the world by the tail. There is only one problem with Lenny… he’s leveraged to the hilt. O’le Lenny has a mortgage and has an outstanding Heloc. (Home Equity Loan) You see, Lenny believed all the BS about taking that Equity out of his house and putting it to work and besides, he deserves it. Lenny put it to work alright by buying a E-500 Benz and a ski boat and financed all of it. Now… well Lenny barely has his head above water and comes to you for a loan just to tied him over. You loan Lenny some money because he’s a great guy and hey… he’s gonna pay you back…. right???? Unfortunately for you, Lenny never gets it on track and comes to you AS THE LENDER OF FIRST RESORT. After the the second time he puts the arm on you….. you are getting the idea that Maybe… just maybe… you may be pouring money down a rat hole as nothing in Lenny’s life has changed. He’s still got the same house, the same cars and boat and has made no attempt to down size his life to live with in his means. Meanwhile – you are, or have been, enabling this clown to continue living in the mode he has become accustomed.
Finally…. the day comes and Lenny is calling you again. You look at the ID on the phone and see its him and don’t want to take his phone call. Lenny is persistent and insistent and finally gets a hold of you. Once again, the sob story, but you are having none of it. You finally blurt out that he needs to sell some of his toys and maybe down size the way he’s living. This is followed by a pregnant silence, and then a stinging rebuke by Lenny saying something like… “Well…you obviously don’t have compassion for me and my dire circumstances.” You see to guys like Lenny, having compassion means, “Shut up and give me what I want” and don’t ask me any of the hard questions, or lecture me on the way I am living because at this point there is no intention of changing. Lenny hangs up the phone on you and you think, well good luck. Just when you thought you have seen the last of him, one week later your phone is ringing again and Lenny is back on the line. Now there is desperation on the other end of the phone. You hear about the bill collectors and how they going to repo his house and those beautiful cars and you just gotta help him……Your response is “Sorry, Lenny there is nothing further I can do for you…”
What Lenny does now is what our government can do but Lenny can’t. Lenny… in his desperation is writing checks he knows are NFG (No Freaking Good). But its now the end game for Lenny as he can’t afford the lifestyle he is living and now the market will enforce its discipline. Such it is with our country. Instead of addressing this Debt Bomb, and it is a Debt Bomb, we are going to continue living as if there is a care in the world. In order to do this we are going to print money with abandon. Look at the recent dramatic increases in Gold and Silver. These are Canaries in the coal mine telling you all is not well. Look at this for what it is…. NOTHING IS GOING TO BE DONE ABOUT THIS. I wish I were wrong, but without addressing this, get ready for massive increases in Gas and Food among other things. These will be direct results of money printing.
People, you do not need to be a math major to figure out how this will end. The Princeton Professor, who everyone thinks is so smart, is bankrupting this country (along with Obama). There is nothing this guy has been right about and yet he is going to persist in printing money which will do nothing but enable our country to continue to put off the day of reckoning. Well…. I got news for you…. He’s going to have the “Lenny Moment” where it all comes crashing down. The time to make prudent preparations are now. For an In-depth free manual on preparations – Email us and we will email one out over (.pdf)….