I’m not an economist. I am not a savvy Wall Street Investor. I don’t watch CNBC or follow Jim Kramer. I am a common sense guy who thinks we are operating in a totally artificial economy. Mark Twain was quoted as saying “The thing about common sense is, it ain’t too common these days. ”
In America, with our Keynesian Economics, we have been trained that we can spend our way out of recessions and depressions, when the best thing in the long run may be a complete economic rebuilding from the bottom up.
The dollar is at a scary low. Inflation on gas, food and commodities is becoming hyper inflation. Our government, mainly the federal reserve, is bailing out everybody but the little guy. They are bailing out JP Morgan to allow them to buy Bear Sterns. They are bailing out Fannie and Freddie. Today they announced the bailout of investment banks through January. They are printing money that we don’t have. Of course this followed up a spending spree in congress for the last 8 years and and wonderful economic stimulus package that was spent on “stuff” from Best Buy. The housing market is bust along with the mortgage and banking industry. There are homes on the market for $350-$700K that will continue to sit. I don’t know many people expanding, but I know a whole lot who are downsizing their homes and mortgages.
I wish at this point I had a stockpile of cash. I would invest into gold and silver ever time the stock market went up and precious metals went down. I would buy foreclosed properties and distressed properties to rent. I would sell short most stocks and buy a select few.
Our fiat, not gold backed currency, is puffing up our economy is such a way that a big collapse has to happen at some point. I would rather own natural resource businesses than anything in the next 15-20 years.
Give me hard assests and hard information. The central bank of this country is loaning money that we don’t have to banks to secure mortgages that people can’t pay. This will mean that banks will own even more of the assets in this country in the next several years.
Our family is preparing for tough times. We are guilty like everyone else of living in luxury with time and money borrowed from the future. I think we as a country are going to have to get out of debt, save like mad men, invest in smart assets- hard assets and give like we’ve never given before. I listen to some very sound economic minds from Australia and they say the United States is scaring the world to death. We are supposed to be the leaders and we as Christians in the United States should be convicted even more. We are the light of the world and the salt of the earth.
Follow the trends- read between the lines- think with a contrarian mind. If you see a group of people going one way and a few people going the other way – follow the few and you’ll probably never be wrong- paraphrase from Earl Nightingale.
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