He says:
I don't have a crystal ball, but I wasn't born yesterday. Let me tell you what is NOT going to happen...
1. The bailouts will never end. Ever. Once you shatter a window, it never goes back to being a window... unless you melt it back down and reform it anew. Same thing goes for our FIRE economy (Finance, Insurance, Real Estate). The FIRE economy is dead, a corpse, rotten and bloated. And the bailouts are just so much plasma and platelets and fluids... No one is checking for a pulse on the body, no one can believe that it is dead. These guys loved the FIRE economy too much, and they are not the best ones to be giving emergency care. Someone needs to walk into the room and put a gentle hand on their shoulder, and whisper "Stop". Until that happens, the bailouts will get bigger and bigger, until one day, people stop believing that the dollar represents value...
2. The dollar will not hold value. Not really a shocker, the dollar has been a terrible store of value since 1913... the year the "Creature from Jekyl Island" took control of the country. Thomas Jefferson warned us of the danger of a central bank, stating that if we give the power to print money to private bankers, that "through the process of inflation, then deflation, our grandchildren would find themselves penniless on the continent their grandparents conquered". He was right.
And the value of the dollar is really based on our collective confidence, and not much more. But the problem is that confidence is not measured on a scale from 1 to 100. You can't "sort of" trust the dollar. Either you do, or you don't. Just like derivatives and credit swaps, when they fail, they go from 1 to 0... like a binary switch. ON or OFF. So it will be, when the American people realize that the Federal Reserve is flooding the world with worthless dollars.
3. Private retirement investment vehicle will not be left in the private sector. They will be confiscated. Perhaps not overtly, but I'm guessing that the day is coming where you must invest your tax-deferred accounts in T-bills (ONLY) to keep tax-deferred status. In case you haven't noticed, T-bills have not beaten inflation for years, and the one month currently yields 7 basis points... seven. Thats a whopping $700 return on your million dollar investment! Yikes.
4. Taxes will not stay low. Believe it or not, our Gov't has a bit of a spending problem, an even bigger debt problem, and a whopping future liability problem. They will raise taxes, fees, pay to play, fines, you name it. We will all pay more, regardless of income bracket.
I wish I knew exactly what was coming. I don't. But I've read enough history to know that the sky is darkening, and the leaves are showing their bottoms. The coming storm will not be gentle like the great depression. It will probably be more like the Civil War, or the French Revolution. I wish I felt differently about the future.
