Thursday, April 8, 2010

The Calm Before the Storm

For civilizations, there are never any free rides. For every action, there is a consequence. When the Romans overspent and over-expanded, it became corrupt and reckless. The empire crumbled and the world moved on. When the Weimar Republic drastically accelerated the printing of its currency to pay debts, its people suffered from a horrific hyper-inflationary holocaust. Today, America has managed to repeat the errors of both the Weimar Republic and the Roman Empire.

As of March 2010, we have 3.4 million Americans who have been unemployed for at least one year, 38 million people living on food stamps, millions of useless IOUs in our social security system, a medicare system that is severely underfunded, hundreds of underfunded pension systems, crashing tax revenue at all levels of government, inept stimulus packages that are drying up, two costly (and necessary wars) and a continued rise in unemployment (and underemployment.)

It you can't see the obvious by now, I don't think you ever will.

For those of you who are awake, I'll reiterate my warnings. Store food, water, protection and medicine. it's not enough to own a gun. You have to learn how to use it.

Like Rome and Weimar, this system will come crashing down. And when that happens, people are going to panic. I just hope that you're ready to weather the storm.

1 comment:

  1. The taxes should be for spending money not for making it. Income is discouraged. Debt is encouraged. We have to get back to a creditor economy. This should be true whether there is a flat tax or a "progressive" tax. Citigroup will be the first of the "Too big to fails" to fail. Just take a look at what they have off their balance sheet.