excerpt from High Alert: How the Internet Reformation is causing a financial hurricane – and how to profit from it:
Despite the talk of rosy numbers, of deficits coming down and jobs being created, citizens of the West, especially in the US, face an uncertain outlook and a challenging future. Many Americans live from paycheck to paycheck — highly leveraged and bereft of any honest money. They are overwhelmingly exposed to whatever it is that those who are the most powerful believe appropriate or profitable to themselves in the sociopolitical or economic arena.
The current financial system is not salvageable. It is entropic, prone to decay. Central banks have to print more and more money to keep up with the spending of the politicians who, in turn, spend more and more to buy the favor of increasingly disaffected voters. Fiat money devalues more and more quickly, and the printing presses run day and night. Prosperity is just around the corner but never arrives and, in fact, recedes despite official pronouncements to the contrary.
The productivity isn’t there any longer, yet in the USA, certainly more than Europe as of this writing, the average household is loaded to the eyeballs in debt and is still urged to take on more. Why? Because foreign buyers continue to purchase American debt, allowing US citizens, even if they don’t know it, to fund their lifestyles at least in part with overseas loans. Who could blame the Chinese for trying to unload some of its dollar reserves by buying resource companies that help to ensure they have enough control over their own productive destiny?
As the currency devalues, the US middle class will be squeezed even harder. The public sector will continue to swell, just as it has overseas. The money and credit in the system continue to expand until the volume simply can’t be contained by economic activity. It becomes overwhelming — triggering hyperinflation and sweeping revaluations. Today, this very scenario is taking place — and tomorrow, as the financial hurricane bears down, it will be even worse.
Again, these results are predictable. Anyone who studies money knows how government fiat-money systems end up. History tells us they always collapse. And we are facing a collapse now.