A nice “upbeat” commentary on America’s future

[stockstradr]

Here’s my “upbeat” thought of the day…

Last night I was reading the economic news, and watching congress feign criticism of the one trillion dollar bailout, prior to their inevitable approval of it.

I thought and felt, “The condition of America implied by this has got to be the most depressing thing I have ever witnessed in my entire life.”

I’m not depressed because stocks or housing values are down. I’m depressed because, like you, I understand economics well enough to see the dark future this implies for America over the next ten years and beyond.

The spasms in America’s financial markets and economy are really the first undeniable death spasms signalling the inevitable decline of much of what we know and love about America. Any American and patriot can only be deeply depressed about this. And our government’s refusal to responsibly apply correct economic treatment at this last opportunity, means what lies ahead is dreadful, and inevitable.

During rough the next ten years America’s dominance of financial markets with a dollar-based hegemony will now collapse. The value of the dollar will collapse. Inflation will soar as our government prints money to inflate our way out of ponderous national debt. The under-funded Social Security and medical system will collapse before our generation can draw out our benefits. The world order will turn upside down, with America’s military and economic dominance ending forever. China and other nations will rise and fill the vacuum. The recession will get much deeper. Many of us will lose our jobs.

America’s economic decline is like a forest fire seen raging on the horizon, burning its way across the land towards your property. You just know with dread it will continue roaring toward you, and burn down your house. I have to give this all some deep thought as to best way to protect ourselves from all of it.

A few thoughts:

– My instincts are stronger than ever that gold will become a safe haven, while the world now enters the anxious, fretting phase searching for what will unseat the dollar as the world’s new de-facto reserve currency.
– My instincts also very strong we are very near the LAST opportunity to secure a fixed rate mortgage at these interest rates, and unfortunately both inflation and mortgage rates will rise steadily in years to come, eventually reaching mortgage rates over 10%. QUESTION: assuming you cannot afford cash-only purchase, is it smart to buy a American home (very soon) using a 30-year fixed rate loan, so you can participate and benefit as our government inflates its way out of its own (and our) ponderous national debt. Why not pay your bank mortgage back with ever-declining dollars!
– As the dollar will crash, what else (besides gold) to trade our dollars into as protection from this devaluing. EUROS? Chinese RMB?
– In terms of career, the Smart Move is obviously to take a job overseas that pays salary in foreign currency. Then as the dollar falls in value, you get an effective raise as your salary is paid in a currency that is rising against the dollar. A job (paying western scale salary but in RMB) in China is the obvious choice. However, the future standard of living in America is so depressing, one really needs a new country to move to PERMANENTLY, but who wants to live in China the rest of your life! Is moving to Europe the answer? Europe has big problems also, particulary since they were LATE on responding with interest rate reductions.
– Another smart move is obviously to down-size into a much lower standard of living BEFORE being forced into it. This means moving so I can ride my bike to work and then sell one of the family cars. This means downsizing our rental (or mortgage) costs with a much smaller home. This means cutting every non-essential out of the family budget. This means preparing for Peak Oil at $200 or $300/bbl, by getting a hybrid car. Also, prudent to plan for loss of job in 2008.

Good grief, this is incredibly depressing.

Your thoughts?
How to prepare? How to take advantage of this coming economic catastrophe?

[stockstradr]

By the way, Rich’s article on related topic of gold vs. dollar value is BRILLIANT:

http://www.pcasd.com/the_case_for_gold_and_gold_stocks

[stockstradr]

By the way, Rich’s article on related topic of gold vs. dollar value is BRILLIANT:

http://www.pcasd.com/the_case_for_gold_and_gold_stocks

[stockstradr]

By the way, Rich’s article on related topic of gold vs. dollar value is BRILLIANT:

http://www.pcasd.com/the_case_for_gold_and_gold_stocks

[stockstradr]

By the way, Rich’s article on related topic of gold vs. dollar value is BRILLIANT:

http://www.pcasd.com/the_case_for_gold_and_gold_stocks

[stockstradr]

By the way, Rich’s article on related topic of gold vs. dollar value is BRILLIANT:

http://www.pcasd.com/the_case_for_gold_and_gold_stocks

[peterb]

I’m starting to come around to a similar conclusion. The US$ losing value as prices keep decreasing for many asset classes. Thus, I have increased my position in gold to 50% of my assets.Both Elliott wave and candlestick charts are bullish gold now. And financial panic is building as well as future pressure of US$ devaluing.
Who knows what the future holds? But I think it’s not going to be good for a while. Articles in the FT lately are pointing towards a Eurozone recession and rate cut. I’d say, work where you can. RE prices may surprise you in the future. You may not need a mortgage. I cant believe I just wrote that. But it’s not that outta line looking forward.

[peterb]

I’m starting to come around to a similar conclusion. The US$ losing value as prices keep decreasing for many asset classes. Thus, I have increased my position in gold to 50% of my assets.Both Elliott wave and candlestick charts are bullish gold now. And financial panic is building as well as future pressure of US$ devaluing.
Who knows what the future holds? But I think it’s not going to be good for a while. Articles in the FT lately are pointing towards a Eurozone recession and rate cut. I’d say, work where you can. RE prices may surprise you in the future. You may not need a mortgage. I cant believe I just wrote that. But it’s not that outta line looking forward.

[peterb]

I’m starting to come around to a similar conclusion. The US$ losing value as prices keep decreasing for many asset classes. Thus, I have increased my position in gold to 50% of my assets.Both Elliott wave and candlestick charts are bullish gold now. And financial panic is building as well as future pressure of US$ devaluing.
Who knows what the future holds? But I think it’s not going to be good for a while. Articles in the FT lately are pointing towards a Eurozone recession and rate cut. I’d say, work where you can. RE prices may surprise you in the future. You may not need a mortgage. I cant believe I just wrote that. But it’s not that outta line looking forward.

[peterb]

I’m starting to come around to a similar conclusion. The US$ losing value as prices keep decreasing for many asset classes. Thus, I have increased my position in gold to 50% of my assets.Both Elliott wave and candlestick charts are bullish gold now. And financial panic is building as well as future pressure of US$ devaluing.
Who knows what the future holds? But I think it’s not going to be good for a while. Articles in the FT lately are pointing towards a Eurozone recession and rate cut. I’d say, work where you can. RE prices may surprise you in the future. You may not need a mortgage. I cant believe I just wrote that. But it’s not that outta line looking forward.

[peterb]

I’m starting to come around to a similar conclusion. The US$ losing value as prices keep decreasing for many asset classes. Thus, I have increased my position in gold to 50% of my assets.Both Elliott wave and candlestick charts are bullish gold now. And financial panic is building as well as future pressure of US$ devaluing.
Who knows what the future holds? But I think it’s not going to be good for a while. Articles in the FT lately are pointing towards a Eurozone recession and rate cut. I’d say, work where you can. RE prices may surprise you in the future. You may not need a mortgage. I cant believe I just wrote that. But it’s not that outta line looking forward.

[BGinRB]

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