Don't Worry, Be Happy, and Prepare!
What is on our "worry" list?
- The winner of the presidential election has been determined, so we can stop worrying on this issue. (Financially speaking, did the election really matter?) A few politicians will come and go, but not much will change in our economy. Government will spend more than it can afford and will bail out more banks and the politically connected. Worrying will not help, but anticipating consequences will help. Read We Have Been Warned.
- The Fiscal Cliff. Politicians will do nothing until they are forced by circumstances to address the consequences of their past actions. There is no need to worry about this problem; it is not changing. Read We Have Been Warned! - Part 2.
- The budget deficit and the trade deficit. See the previous bullet in this list.
- Unemployment. Yes, this worries me. Real people need work, and our economy is not doing well at creating jobs. Do you see any plan, anywhere?
- War and peace in the Middle East and North Africa. As it was in the beginning, is now, and ever shall be... Their problems are not going away anytime soon, so there is no need to worry. But planning for your gasoline price doubling during the next four years is sensible.
- Who will be voted off that dancing show? Okay, just kidding.
What can we do about all our worries? Very little! Based on past actions of government and The Federal Reserve, we can anticipate:
- Massive government deficits - spending rapidly increases while revenues stagnate, just as has occurred over the past four years.
- Money printing - liquidity injections - bond monetization - QE4-Ever from The Fed. Given the current conditions, continued "printing" seems not only inevitable but necessary to prevent a financial implosion. Inflate or die!
- Increasing consumer prices for food, energy, health care, taxes, and much more. Our standard of living will decrease.
- Volatile stock, bond, commodity, and precious metals markets. Look for commodities and precious metals to continue their 10 - 20% per year increases, but with more volatility.
- And more of the same.
- Read We Have Been Warned! - Part 3.
Don't worry, be happy, and PREPARE for the inevitable money "printing" and resulting inflation! Anyone reading this article probably can't fix 99.9% of the above, so buy gold, buy silver, avoid leverage, get out of debt, and watch the spectacle. It is certain to get more exciting, complex, and interesting.
Are you PREPARING for the "New Normal"? Are you buying gold and silver?