A Rising Tide Lifts all Boats, until the ChiComs Pull the Plug

In 1970, as an idealistic student of American Government, writing my junior year thesis, entitled : "Congressional Oversight of Weapons Systems Acquisition by DoD", I noted that the annual federal executive branch budget of 200 billion dollars was skewed toward unreliable and unproven weapon systems that Generals and Admirals demanded, irrespective of growing federal deficits.  

              Yes, I was a fiscal conservative even then.  National defense was and always will be the first obligation of our federal officials, but that utmost responsibility makes it even more important that procurement be done intelligently.

             I burden you with this background only as a point of reference to the current out of control federal fiscal policies - last month's 30 day deficit spending exceeded all federal government expenditures for all of 1970.  We will run a 1.2 trillion dollar deficit this year.  That amount of borrowing is clearly unsustainable.

               Today, the recession might well be easing, due to the government's hemorrhaging of paper money (literally printed by the Treasury and shipped to the Federal Reserve to buy Treasury bonds).  Nonetheless, this illusory return of prosperity will evaporate quicker than the morning due in July, once our foreign borrowers see the buying power of their US dollar investment crash and burn, as the world economy is saturated with hundreds of billions more U.S. dollars than these currency markets can accomodate without a massive devaluation of the dollar/world currencies conversion rates.  

So, I say to you: Stay thirsty my friends, and buy gold now.