STOP Looking Backwards
My foolian friends, we are in revolutionary times, not cyclical.
Could the buggy whip manufacturers in the early 1900s look back at hundreds of years of buggy whip cycles after the invention of the automoble? If they didn't start manufacturing luggage, they were out of business.
Do you look in your rear view mirror while driving to figure out where you are going?
History provides perspective, not direction.
California is out of money, plain and simple. The situation will get worse month after month as fewer businesses and individuals will be able to afford to pay taxes as they had in the past. It will spread to state after state. It is just that California is the biggest and will have the greatest impact on the nation.
Few really seem to understand the significance of the state wanting to print IOUs. It is actually considering printing its own state currency. A dollar bill is nothing more than a Federal IOU. If you don't believe me, just read the language on the front of the bill. Could you imagine if other states started doing the same thing? What about businesses? How about individuals?
If you live in CA, wouldn't it be silly if you paid your property taxes, or sales taxes in IOUs? If it is good enough for Ahhhhnaaaaaalllllld, why should it not be good enough for the rest of the citizens of CA? What about equal protection under the Constitution??????
We are just about to enter the period that I have been warning....very subtlly, but warning nonetheless. Nobody knows what a "dollar" will be worth? Will a loaf of bread be $0.50 or $5000.00. At this point it is simply a guess.....no matter how smart you think you are.
Is gold the solution? Who the heck knows....try taking a bag of gold up to the cash register of your local grocer and see how the checkout person reacts. Wealth and dollars are evaporating much faster than the government is printing them......and those that are being printed are staying with the banks for the most part.
Even Obama's most recent proposals doesn't even come close to making up for the extent of the evaporation of dollars.......how will this play out.....NOBODY KNOWS......but get ready for some very exciting times.....very exciting times.