I have a guest columnist today. He is a man who has become interested in the economy and thus has become interested in survival. Apparently he knows what he is studying. Here we go.
TROUBLE IN THE FUTURE by C.G.
Here is an excerpt from a market newsletter that I subscribe to, which I consider a mainstream-thinking author. It seems that the world is changing fast and people are finally catching on...
We are experiencing a turning point in our culture. The public now expects the government to step in and solve any crisis. It remains to be seen just what the fallout will be from the government�s efforts over the last year; but it will not be positive for stock prices, or for corporate profits, or for employment. You will be advised in the media of the �new normal� which will be a cheaper stock market, lower corporate profits, and a higher unemployment rate.
A bigger concern to me is that we will never get rid of the �solution bureaucracy� being created in the wake of crisis,and we will never regain the freedoms which the public is so willing to forfeit for a solution. I am forced to wonder where corporate America, indeed the corporate form of ownership, will end up after all of this? Who will actually run American business? I suspect it will be the same folks who deliver your mail.
Increased corporate oversight may eventually preclude owning U.S. stocks in the future. I am sure the same thing was said in the 1930�s as the government was bringing stiff new regulations to bear. However, today�s events are beyond mere regulation � they are trending toward direct government involvement. That will change the primary corporate objective from generating profits to something else. Corporations may be forced to operate solely for the common good instead. What ever changes that are in store are certainly not good for investors. We will see this reflected in the prices of paper assets as the secular bear market that began in 2000 resumes this fall.
Freedom will be a victim in this process, and so will the value of your hard earned money � U.S. dollars. How to build wealth, or indeed to maintain what you already have, will require a new approach and a better investment strategy over the balance of the century. This strategy must begin by investing with the idea of a much weaker dollar in mind over the long haul.
Here is an interesting headline in this day and age when deflation is all the rage: �Anheuser-Busch InBev and MillerCoors say they will raise prices.� As I have said in past letters, you will only see lower prices for those things that folks can give up easily.
An interesting article and full of things we should be thinking about. One of the things I think about is the bail out money. What the hell happened to all of that money? Trillions of dollars and we can't find out who got what. This is sho' nuff larceny. Right here in front of God and everybody, we are getting scammed and ripped off. Bernanke is going crazy making threats about what will happen if the Federal Reserve gets audited. Can you think for a moment what a business with horrendous power can do if it is not audited? It's mind boggling. And our dear sainted President Woodrow Wilson, another Democrat, was the guy who gave us the fed. Thanks a lot, Woody.
I read some economic sites myself and the news look's pretty bad for some folks. I hope you all have your land paid for and have plenty of preps. I cannot emphasize too strongly the concept of having preps. Food and more food. Non-hybrid seed for your garden. Guns and ammo for your protection. Medical supplies for keeping you healthy. Big John has been talking about tools, old, strong tools. He has a truckload and I think it is a great idea. My non-hybrid beans are just now starting to dry and should be ready in two or three weeks. Then it is going to be shell-out time. I intend to give away last years beans as this year's come in. I am already getting my ducks in a row for next years garden. I must do corn next year. Bloody Butcher Corn. I guess it is a good variety and if my compost works this year I should get a good crop. You gotta have a grain to go with your beans in order to make a complete protein. Rice has always been cheapest but corn will do and rice may not be available when you need it. I reckon the folks down in Arkansas will have plenty but we might be on the low end of the totem pole for any favors in that area. If the fedgov gets low on money they may require the rice to be sold overseas. They can get foreign currency that way. And foreign currency will look nice if the dollar ain't worth the paper it is printed on.
Another thing that is taking up some of my precious thinking time is the news that 50% of the doctors is England have refused to take the Swine flu vaccine. This tells me that I made a good decision when I decided to not get the vaccine. You do whatever you think is best.
Saturday, August 29, 2009
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