As North Carolina and a couple of other states hold their primary elections on Tuesday, let's keep a few things in mind.
Empires rise and fall. The Ottoman Empire, the Umayyad Caliphate, the Persian Empire, the Byzantine Empire, and the Roman Empire are a few examples of powerful governments that have come and gone. There are others, but the point is that empires eventually fall. The American Empire will fall.
What these ancient empires did not have was technology. It was more difficult, for example, for the Roman Empire to devalue their currency. They had to actually begin melting copper into their gold currency to devalue it. The Romans were not privy to numerical digits on a screen. These days it's no big deal for the Federal Reserve to create trillions of dollars of new electronic money via computer.
We've come a long way in many ways and not far at all in many ways. Technology has advanced, but man's sinful nature is always present. Advancing at the expense of others has been around since Cain and Abel in Genesis. Manipulating currency is inherently dishonest. We have a moral objection to Quantitative Easing (Fed creation of money), because it takes what we have worked for (our dollars) and makes them less valuable.
This brings us to another issue. With Keynesian economics, debt is pivotal to the continuance of the economy. There has to be some way to heap more debt onto the system in order for it to continue. Often times this is called deficit spending.
Today in America our national budget cannot be balanced and Obamacare has exacerbated this issue a hundredfold. All the good intentions in the world will not pay for what the government is spending. We are swiftly approaching a day when it will be impossible to pile more debt on top of our current national debt. What happens then?
Currently "The President's Working Group on Markets," more colloquially called the "Plunge Protection Team," is manipulating the stock market, bond market, unemployment numbers, and precious metals prices, and we believe they have begun trying to stabilize the price of oil and the Baltic Dry Index.
The oil glut is likely to cause the house of cards to crash. Mainstream media sources like CNBC commonly have headlines like "Half of US shale drillers may go bankrupt." While many people are welcoming lower prices at the gas pump, it is not a good thing. For the unaware, the low price of gas creates a euphoric normalcy when they are able to hop in the car and go for next to nothing.
The oil companies have debt... Now who reaps the consequences when an oil company goes bankrupt? The banks do. The banks who are worse off than they were in 2008 when the government began devaluing the dollar by printing trillions of dollars. Think they can get another government sponsored bailout? Think again!
In 2010 Congress passed the Dodd-Frank legislation which mandates that there will be bank bail-ins. Meaning, depositor money will be used to stabilize the bank should the need arise. So when the oil companies go belly up, the bank screams with pain, and then your money is used to stabilize the bank.
So this brings us to our final point. Which Presidential candidate do you want guiding America through the pending crisis situation? Whoever that is, I hope they have an iron stomach.
These facts are meant to be warnings, and to demonstrate why it's important to protect your financial assets. We have strategies to help you do this in dollar-oriented financial tools, and also hard assets like gold and silver. There has never been a more important time in our lifetimes to be certain that your financial house is in order. After all, we all know there is precedent for the stock market being shut down for months at a time. During the Great Depression people were locked out of their money. Don't risk it all for a little more gain. It's just not worth it.