by Kirk Elliott, Ph.D.
The U.S. government posted its largest monthly deficit in history in February! The total shortfall—$223 BILLION, according to preliminary numbers of the CBO last Monday. At this pace, the federal government would have a deficit of $2.67 TRILLION in 2011. Unbelievable!!!! They have got to stop spending money. The formula is simple: reduce spending AND reduce taxes to fix this economy. They are doing EVERYTHING OPPOSITE OF WHAT NEEDS TO BE DONE!
The rest of the world is really noticing our fiscal and monetary insanity. In fact, Bill Gross or PIMCO, the country’s largest bond mutual fund, stated that HE IS NO LONGER GOING TO BE BUYING U.S. TREASURIES. What?!?!?! I was taught in school that U.S. treasuries are the safe-haven investment to which risk-averse investors should flock. Well…times are changing, aren’t they? The U.S. dollar is on the verge of collapse, and countries, mutual funds, institutional investors, and hedge funds are starting to withdraw support—either partially or COMPLETELY. The writing is on the wall for our currency. Sadly, this also means the writing is on the wall for our way of life.
As if that wasn’t bad enough, geo-political tensions around the globe are deteriorating at a rapid rate. Zimbabwe may defy United Nations sanctions in a deal to sell uranium to Iran. Uh, oh!!!! Will Israel react to this? Possibly. Israel knows that she can’t rely on Obama in situations like this. And even pro-western Kuwait started having protests last week with the goal of removing their Prime Minister. Portugal edges ever closer to disaster as the yields on Portugal’s government bonds are now over 7%. YIKES! What a mess.
What we need to do is pray. We need God’s protection, guidance, and wisdom. We need to protect our finances. Re-alloccate your investment portfolio, and make sure you have an appropriate hedge of precious metals to protect your paper assets. Times are changing…QUICKLY! Be prepared.
