08/26/09 Pittsburgh, Pennsylvania
We’re still in the early chapters of the overall gold story. The plot is still forming, although I believe that all of the main characters are on stage.
We have excessive U.S. government spending. We have the deepening federal deficit, and associated exploding national debt. We have significant monetary players overseas, like Japan and China and Middle Eastern nations, holding trillions of dollars worth of U.S. bonds and other paper — and getting nervous about it. We have a hollowed-out North American economy that’s turned into what historian Charles Maier calls an ‘empire of consumption.’
Then we also have the utter incompetence and hubris of upper-level U.S. politicians and policymakers. They’re collectively so out of touch that they don’t even know that they’re out of touch. We have the parallel incompetence of the Big Media, with their overall ‘infotainment’ approach to presenting vital news to the American people.
The tragic part of this drama is that the high and mighty are setting themselves — and the U.S. economy — up for a terrible fall. Sooner or later, with all the spending and new bureaucracy, we’re going to have an implosion and see a collapse in the level of complexity. Those green ‘notes’ that the Federal Reserve prints — with the nice pictures of dead presidents on them — will not be worth nearly what most people believe.
Neither you nor I can do anything to prevent it. (OK, write to your congressman, for all the good it’ll do. Or go to a town hall meeting, for all the good it’ll do.)
The answer, of course, is to protect yourself and your family, and save what you can. When the mighty tumble, be sure not to be standing there in the crash zone. That’s why there’s the focus in Energy & Scarcity Investor on real things, like precious metals, energy and key technologies.
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too little infrastructure supporting too much infrastructure….the inverted pyriamid will topple or be replaced by something so totalitarian that even george orwell or friedrich hayek would not recognize it…..
the current crop of CONgressmen is much the same bunch who took us where we are now so their vision is clearly focused on the rear view mirror….
as i told my CONgressman the herculean efforts used to prop up the current sclerotic soviet regime is depriving capital for visionary and next era successes and triumphs….thus schumpeter is buried alive in his grave and no room to turn.
you can never go wrong owning gold….
that should have been too little infrastructure supporting too much superstructure…