The Forcast for 2009
Its shitty... very very shitty indeed... and I shall explain why.
Right now as we speak the 2009 federal budget deficit is at 500 billion... and that does not include anything from TARP... or the soon to be past "stimulus". It doesn't include all manner of costs of the current war which are funded on the fly.
What I'm saying is... in 2009 the federal government is going to spend 2 trillion dollars more... at least... than it collects. That 2 trillion dollars will have to be borrowed... and since we already owe 5 trillion... and the rest of the world is in the same pathetic state we are... its quite clear that the "lending" will be done by the Federal Reserve Bank.
It will "lend" this money to the federal government by "monetizing" the debt. That's what they call it when they print money from thin air. The government wants to spend it... so they literally print up how ever much they need and call it a day.
This is new money. 2 trillion dollars of new money.
I want you to ask yourself... what would happen to the price of gold if 2 trillion ounces of the stuff suddenly found their way into the market? You're right. It would drop like a stone. Gold would be worth less than silver.
Now... what do you expect is going to happen to your dollar when they print up 2 trillion new ones?
This is compounded by the fact that GDP is actually shrinking. We're producing less. So the money supply should also be shrinking... in order to maintain the value of the dollar. But no.. we're doing the opposite. We're literally destroying the dollar.
This is how a big recession turns into a Great Depression.
This is how financial systems die.
How will it effect you specificly though? Prices on everything will go up. Way up. They'll double. They'll more than double... because each of your dollars will only buy what .50 cents will buy today.
There is no getting around this. There is no stopping it. This is not a prediction. This is fact.
If you have cash assets... get rid of them. Convert them to something tangible. Gold or silver will go up in price as the dollar's value goes down. You will be protected to a point. The time is now people. You should be planning for the bad times to come with your family. Very few of us are going to be able to make it on our own during these times... fewer still will thrive.
Most will be forced to pool resources... to improvise... to do without.
Buy a pressure cooker.. learn to can... start as large a garden as you can.
If you know nothing about any of this... there is a book called Country Wisdom and Know-how. Go buy it and start doing for yourself. For a few months it may be a fun hobby. A few months later than that... you'll be damned glad you learned from the experience and made all your mistakes when they didn't matter so much.
Time to get to work folks.
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