THE STATE OF THE FINANCIAL WORLD

– and how it affects us

The world’s financial systems, as a result of the greed and corruption of Wall Street facilitated by their political cronies, unofficially have been out of control for several decades. The reason for confirmation of these events is that over the past 3 to 4 years, official interest rates in the Western industrialized nations have lingered at near zero levels. This is unprecedented in history and signals a massive disintegration of systemic failure. Quantitative easing and subterraneous inflation fuel both the confusion and conflagration. The end result, barring a miracle, is that these measures will not save the financial markets, our life savings, our pensions or the planet.

To keep the game going, the US Federal Reserve continues to resort to monetary inflation but that process is erosive in the extreme. At the corporate level, including small business, higher costs and shrinking profits compound the problems. Looming over all this is the increasing cost of imposed healthcare systems, which may be called the ‘Insurance Tarp’.

To further muddy the waters, we have the US election, which fields two candidates or parties that are literally making up the facts as required. Neither Obama nor Romney has a definite vision and the US currently has more problems than solutions. One may safely hypothesize that the upcoming election will change nothing − no matter who wins. Despite this I would favor Romney for the potential of real change.

The solutions: return healthcare to the client-provider level, erasing the costly administrative intermediary complex. Similarly, governments must solve the problems they create by radically reducing the number of politicians, political parties and bureaucracies.

Finally, solutions for individual self-preservation: do not purchase any paper – no matter who writes it, sells it or delivers it. Purchase solid income producing properties and acreage that has potential for future development. For immediate needs, purchase precious metals, diamonds, etc. for direct holding. The prognosis – critical at best!

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