America is racing toward its greatest test since the Civil War – a monetary inflationary spiral leading to a depression that will be remembered with a shudder for generations. We are looking at a collapse that will eclipse the Great Depression.
No one knows exactly where the tipping point will be, but it’s coming. Unless you have buried your head in the sand like an ostrich, you know America is truly on the brink of disaster, along with the rest of the world.
So what is likely in your future? A grisly list of unpleasant events – exploding inflation leading to probable price controls, shrinking of your wealth (if you have been able to achieve any), soaring gas and oil, total collapse of private and government pension programs (including Social Security), vastly more government policies and regulations to control your life, the disintegration of the basic foundation of society, the traditional family, and eventually an international monetary holocaust which will sweep all paper currencies (especially the dollar) down the drain and turn the world upside down.
Paper fortunes based on lending will implode and a new kind of investment and financial-planning morality will put some very unlikely people on the top of the heap. And you can join them there, if you know what to do.
You don’t have to be a genius to identify the basic trends and make some very simple decisions with your assets. You might feel unsure, and that’s why I’ve created the RuffonomicsU with a group of experts you can trust to guide you to freedom from government controls.
Here is what has happened to get us to our current state of chaos:
Residential real estate has collapsed. Deflation, recession and unemployment threaten our public welfare. Washington continues to react in their usual panic fashion, attacking the problem by cranking up the spending machine to “stimulate” the economy – “a bit of the hair of the dog that bit us.” Job programs, matching funds, universal health care, guarantees, subsidies, bailouts, loans, and entitlement programs have brought us to this moment of crisis.
The continued creation of fiat money is the engine of inflation. You will see a gradual accelerating inflationary spiral, followed by government imposing price controls, which is like pouring kerosene on the fire. These effects of dollars coming from “the printing press” will finally cause Americans to distrust our paper money and start to get rid of it as fast as they can in an orgy of spending, similar to what happened in Argentina when their inflation was running at over 800% a year and Argentineans were buying everything in sight as inflation hedges.
When Kay and I went to Brazil years ago, they were suffering from 1,000% or more inflation. We went to a recommended curio store to shop, but it was closed for two days. When the owner finally showed up, he told us, “Inflation was driving up the price of my wares so fast I can’t afford to sell them.”
Sooner or later, the American dollar will no longer be a dependable means of exchange (it is already no longer a store of value), which will create chaos in the market-place. In the final stages, Washington will attempt to issue a new currency by “fiat” (official order), but by the time we get to that point there will have been a sudden rush of brains to the head and we reject it.
All paper currencies depend on confidence. After all else fails, the government will finally be driven by desperation to re-establish a gold-backed currency, but because it has already sold most of its gold hoard, gold will have to be revalued upward to a price adequate to back the new money – thousands of dollars per ounce. This will be the only way to establish a means of exchange and a store of value that people can trust.
A tiny minority who have no need for a means of exchange during the chaotic period (who have already bought several months’ supply of all the things they will need, such as food, clothing, candles, medicine, toilet paper, batteries, diapers, soap, automobile parts, etc.) will get along fine. Those who have no acceptable means of exchange, no store of value, and no advance storage program will suffer.
Eventually order will be re-established, and painfully the nation will climb back out of the pit it created one entitlement at a time, hopefully chastened and prepared to avoid the mistakes of the past 50 to 100 years, but “net-lenders” will have been wiped out and paper fortunes will have disappeared.
We will launch RuffonomicsU within the next few weeks and will send details soon. This is no “bail-out-of-civilization-and-head-for-a-retreat-in-the-Rockies-with-a-machine-gun-turret-on-the-roof” plan. Learning from the experts will raise the odds of your personal and financial freedom as you begin to live free from the control of government entitlement programs. You and every middle-class American can and must learn how to survive the chaos of the next few years.
You will want to invite your family and friends to become members of RuffonomicsU, and we are working on an affiliate program to make that worthwhile for you.
I am not forecasting the end of the world, the end of Western civilization, or even the end of the American dream. America has survived a Civil War, at least three total monetary collapses, and several depressions, to say nothing of the stupid decisions made by U.S. Presidents, past and present. The inherent strength of the American system is incredible!
Wednesday, February 27 Close:
Dow Jones Industrial: 14,075.37
S&P 500: 1,515.99