Recipe for Disaster!

I fully realize the title to this posting is over-used to the point of it being cliche. But....

That does not dissuade me from pointing out that disasters have happened in the past that were fraught with stupidity from the outset that brought about a sure and horrible end. I could speak of the Titanic, the Vietnam war, our "security measures" that led up to 9/11, and especially the election our our current man-child president!

But what is bothering me at this time is simply this. We are on the brink of an economic collapse that will dwarf the Depression period of the 1930s, and that quite possibly will bring the United States of American into an era of (un)civil war from which it will never recover.

To wit:

We, the US Congress, is about to pass, ram through, a bill for supposed "health care reform," that will have a price tag, depending on who is counting, anywhere from 1.2 to 2.0 TRILLION Dollars! There is scant little plan in place to pay for this horrific boondoggle. Some talk of cutting Medicare by 500 Billion Dollars, and "Taxing" the evil rich and insurance companies. But aside from those ludicrous ideas, what is always held in reserve is the fact that the United States Federal Government can simply print money!

I know that sounds simplistic to many of you who deem yourselves sophisticaed financeers. But the presses have already been inked and the paper is ready.

FACT: The US Dollar has lost over 16% of its value, compared to other world currencies, in this year of 2009 alone.
FACT: World oil prices are soon to be measured in a currency other than the US Dollar.
FACT: As our dollar decreases in value, we will have to pay more of those dollars for just about everything that we consume.
FACT: America does not manufacture its own consumer goods. China does.
FACT: America does not produce enough of its own energy products, oil, etc., to satisfy its needs. DUNNER'S predicts that "American field production will probably go below 25% of its total annual supply within the next five years."

The stage is set for the perfect economic storm. And, sadly, there is little anyone can do about it. We have become a dependent nation. We have chosed, via our elected officials, to be that way.

Now consider: If we are in place to have TRILLION dollar annual deficits for as far as the eye can see, the time will come when the world will simply say, "ENOUGH! We've had enough of your free-spending ways and failure to balance your own economic budget. Pay us what you owe us!"

My friends, should that occur, (and we have already heard rumblings to that effect from China) the worst of the worst would happen. With no value behind our Dollar, with no manufacturing base from which to generate wealth, and with no discipline in our government to rein in its desire to TAX and SPEND, TAX and SPEND, we would have nothing of value to pay our creditors... They would not want phoney printed money; they would demand hard assets.

Would anyone besides me care to fill in the blanks as to what those assets might be?