Now that our nation’s politicians, led by President Obama, have concluded their histrionics over “sequestration,” and the automatic $85 billion in spending cuts have been written into effect, the question becomes: So what?
The White House admitted to the nation and to the world last week that the president had actually been “for” the sequestration cuts. Awkward! In truth, he had actually developed the concept. After that he alerted us of all kinds of disasters that would befall America if we risked a simple 2% deviation from our prepared 2013 spending.
In the real world, this was such a non-event that even Wall Street took the development in stride this morning. And unless the federal government gets serious about slashing spending even further, “boy who cried wolf” scenarios like sequestration will keep occurring.
The final point is that the sequestration cuts will not impact runaway federal spending. Furthermore, our economic circumstances are so dire that the U.S. budget plan talk will not change the future of America nor will it ameliorate the world’s economic climates. There’s little that can be done prior to an international monetary collapse. The way things are going, the worldwide financial collapse will make 2008 resemble a walk in the park.
I like how Nilus Mattive at EasyStreetInvesting.com summarized the whole parlor game. He said the sequester debate was “like a deeply indebted household arguing about the amount of money that they spend on soft drink while overlooking their home loan payments!”
As Mattive and many others, including Real Money USA, have pointed out, our nation’s obligations to entitlement spending such as Social Security and Medicaid effectively have bankrupted us. Obama’s piling on of still more, discretionary spending through initiatives such as Obamacare is just adding to the house of cards, whacking the U.S. dollar still more and guaranteeing that the next financial panic will be immeasurably worse than the last one.
What can you do about protecting your household assets and investment income in the midst of this madness? Invest in God’s Money, gold and silver.
While precious-metals rates have, in fact, dropped a little just recently, you can be sure that this short-term change in pricing is just a technical correction in the inexorable motion upwards. The market will increase the worth of gold and silver instruments.
Why else would the Fed and the world’s other central banks be continuing to hoard God’s Money, when all they need to do to keep their economies afloat – or so they believe – is print more of their own currency?
Looking to find the best deal on gold and silver? Also, visit Anne Trimble’s site to find the best advice on surviving crisis by reading her autobiography Faith Through The Flames.