Dollar Bubble and the Government Debt Bubble are the next on the list to pop. Self-serving politicians will not acknowledge the dramatic risks we are currently dealing with. We are borrowing money at level exceeding $1 Trillion per year. The Federal Reserve Bank is buying most of the debt. Where are they getting the funds to buy the debt? Out of thin air.
How do we prepare for the bursting of these bubbles? First, we must acknowledge the problem. Denial is a killer. Two to four years appears to be the current time frame.
Normally, the inflation rate controls the printing of money but the Fed has manage to exercise short-term control over the rate. Manipulation of the price of gold has helped keep the lid on the “perception” of inflation. Manipulating government statistics such as headline unemployment and inflation has served them well.
Resource depletion is still occurring and $85 oil is now the new norm as a base price. This will help fuel inflation.
What is the exit plan of the Fed? There is none. The level of the problem has exceeded their ability to control. We have been close to zero percent interest rates going on four years. That’s fine if you want to borrow. Investing has now become “speculating” and the real issue is the return of capital rather than return on investment. In frustration, investors are making mistakes and attempting to seek out a return on investment thereby risking their “return of investment”. It appears that many are being set up for a substantial extraction of wealth in a very short period of time. Their illusion of wealth may be on the verge of being shattered. When that happens there will be a corporate repenting by society. Desperation moves them to seek the Higher Power that they once knew as children. Knowing nothing else, they will recite the Lord’s Prayer, hoping that the pain will be relieved. There will be a new paradigm of Internet surfing and it won’t be for sensual pleasure. They will seek answers to life instead.
Isn’t it amazing that the so-called smartest guys around are creating the very mechanism that will remove them from power? The Sons of GOD will be ready and empowered when that day arrives.