Thursday, June 10, 2010

A great time to flee to your desert cabin(hope it’s paid for!)

Everywhere you look around you, unless you live in the Hamptons or Dubai- oh wait
a minute, they’ve been rocked by the recession too, the signs are there for those who see.
Yesterday, I drove over to Fullerton from Buena Park, and sitting under the freeway underpass, were about 4 homeless people, a scene straight out of a Steinbeck
novel. You see these unfortunates everywhere you go.

A careful viewing of the media, skipping over the corporate fluff and spin, reveals
tale after tale of want and need in this “land of plenty”. Virtually every economic site
online brings forward bad news, I mean there’s just too much bad news to sweep
under the rug anymore.

Then you add this massive Gulf Oil catastrophe to the mix, which directly affects a
region with a 2 TRILLION $ economy, and probably will affect for years to come, and
maybe even leading to the shutdown of shipping on the mighty Mississippi River, this
is really looking more and more dire, the longer it goes on.

Add to this the fact that the Federal Reserve threw about a Trillion $ to the banks and
the U.S. Treasury another Trillion $, and look at all the good it did for us and our country,
in my humble opinion, we have got one foot on a banana peel and the other in the bone-
yard. One wrong move or slip, and we may go right back into recession or even depression.

Economic sites I follow say our M3 money supply has contracted about 5.9% which in
the old days was called deflation, very bad news for a “dead beat, debtor nation”.
Maybe in all fairness, I should have left it at debtor nation, but we have reached the point
in our empire building, where we just will never be able to pay off this debt, no matter
whose taxes we raise, or whose benefits we cut. We will have to make our bond payments
or else risk the “bond vigilantes” making a run against in the bond markets, possibly
exposing us as the next Greece or whoever the whipping boy is at the moment. We have
very little room to maneuver in this, per everything I’ve read. The difficulty of our situation
is also self evident by the gyrations our elected officials, both state, local, and federal, are
doing right now and this will only get worse in the very near future.

Yes, this is definitely the time to cash out of the markets, if you haven’t been wiped out
already by the rigged system and get ”liquid” as they say.

If it was possible, I’d head straight to the desert, do not pass go, do not collect $200, just as
quickly as I could, and head right to my cabin to live out my days.

Unfortunately I don’t own a cabin and I am broke so I guess I’ll face this freight train
coming shoulder-to-shoulder with the rest of you.

God help us in the days and years to come.


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