A Comment on the American Economy

The traditional American economy is now clearly into the dump phase of a managed “pump and dump” cycle that began in the mid-1990s with the “strong dollar policy.”

The housing bubble engineered by the Clinton Administration and perpetuated by the Bush Administration is losing steam. The government’s ability to print Treasury and agency securities and the Fed’s ability to print currency are increasingly questioned and under pressure globally. As this happens, the significance of the intentional siphoning off of assets and equity from the American economy and industrial base over the last decade – including +/- $4 trillion missing from federal government accounts – is becoming more apparent.

What does this mean to most Americans? A steady decrease in income, a steady rise in living and interest expense and a leveling off of housing prices – even a fall – at a time when most Americans are saving less and seriously overleveraged.

The biggest policy questions of our day are “Who is siphoning off our wealth?” and “How do we restore and reverse the flow back into our families and communities?”

Solutions to the financial drain in our communities necessitate we assert control of our local economies and government sufficient to assert control of the national and international governmental financial mechanisms that are managed on an uneconomic, unethical or criminal basis. To build the power to do this begins with taking advantage of the many opportunities we have individually to understand and bring transparency to how money works in our community and to vote with our bank deposits, our purchases, our investments and our time and associations.

One of the components of Solari Portfolio Strategy – my vision of how to build real wealth with your investments – is to use precious metals as insurance to help protect your assets and provide liquidity in critical times. Moreover, by taking steps to protect yourself against the manipulation and debasement of fiat currencies, you are taking action in support of freedom and sound financial systems. I am often told that mining companies are bad for the environment. My response is that our current central banking system and fiat currencies are wrecking our environment on a scale that the worst mining companies in the world could never touch.

4 Comments

  1. I am getting more and more worried about the economy and global meltdown.

    The more things change the more they remain the same. The fundamental challenges we face today have changed little since Chaucer penned his observations on life and distilled them in a set of tales. In the modern city of Canterbury University Students analyse and dissect the meanings conveyed in texts set in that very locale in the 1300’s.

    Youngsters face today’s Jekyll and Hyde society not knowing that the Constants remain; love, betrayal, desire, fear. Each story conveys a lesson as we study for our degree in the University of Life, the big diploma mill of which we are all Alumni. We sit grinning like Cheshire cats, thinking we have all the answers.

    We call it a success when we pollute our atmosphere shooting down our own Satellite USA 193, Market Street Credibility is our preferred accreditation and recognition from our peers and fellow consumers, we Poison our Planet for Profit. Banks have crashed before and remember – you can’t eat money.

    Globalization has consequences. Everything we do has consequences, even something simple like buying firewood. The Oregon ODA advises not to obtain anything from out-of-state because of all the insects and diseases it might carry. That is just a relatively local issue. Imagine all the things that are carried around the world each day – each hour. We must protect our future, just as we should remember our past. All over the world, From the UK to the USA and the Seychelles to Egypt, still, yes, STILL, there is no REAL alternative to fossil fuels.

    Are we all going to purgatory in a wheelbarrow telling each other stories to pass the time? Sometimes I wonder!

    Sorry guys, I had a long day and feel sick of the world. Rant Over!

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