fubar02

Three Reasons the Stimulus Will Fail

Outstanding! This fellow has serious big picture lucidity.
The myopicity and ignorance of our public and politicians is challenging. What's really scary is that the foxes are still guarding the henhouse; and we are the hens.

Historic Financial Collapse Underway?

Most of Stansberry's article is solid. The only problem I see with it is that as a student of and believer in the Kondratieff Wave and member of "Who's Who in Hard Money Economics" in the early 1980s, I wrote an advisory article that sounded pretty much the same. Back then they called people like me "gold bugs."

Now twenty five + years and constantly inflationarily later, the U.S.A. is still here, oil prices are up once again, and the dollar is again in deep do do as it should be. (Last time it was saved by a hike in short rates to near 15% as I recall.)

Today we seem to be back at a similar point in a long-term cycle as we were in 1981+/-.

As an investment advisor then, I found the hard way that meritoriously dwelling on the true risk of fiat currencies was no way to make or save client money over a forseeable future, for gold dropped from $850 an ounce to about $250 and silver from near $50 an ounce (the market was cornered...maybe like oil is today) to $4.15.

All this happened, of course, while the U.S. continued to inflate the money supply and put interest rates at fire sale levels.

That of course added fuel to house prices, allowing Wall Street to securitize the smoke and sell it to the rest of the world.

This is all to say that while my head and gut tell me the author is right, historically the U.S.A. has managed to muddle through some pretty tough stuff (weak $, Vietnam War, collapse of the savings and loans, etc.) in the not so distant past.

Hopefully, this muddling medium-term cycle will continue and the very long-term and complex one signifying the complete decline and fall of the U.S.A.'s currency and democracy will be further off in the future this trip as it was last time.