Inflate Your Problems Away

If you were a government that had borrowed $16 trillion from multiple sources and you knew that you could not raise taxes enough to ever pay it back while at the same time continuing to pay generous benefits....what would you do?

There is only one thing to do.  You have to create money out of thin air and know that sooner or later, if you create enough, $16 trillion will really not be worth $16 trillion...so it will become a lot smaller debt in real terms than it currently is.

Think about it.  30 years ago if you had $1,000,000 in investments and took them all down to your local bank...you could put it in a CD and easily draw out $60,000 per year...and with that much income you were sitting at the top of the food chain.

Today, if all you had was $1,000,000 and no pension....you best keep working because the bank won't pay you more than $10,000 and cost have gone up 4 times on everything you need to live....and health care cost have gone up about 10 times.

Now watch this interview from a top analyst at Aberdeen Money Management.  He flat out tells it like it is....saying the Bernanke's latest comments on the U.S. economy are "disingenuous", (which is a nice way to say that he is lying) and also saying that inflation is already here for Americans and it is going to get a lot worse.

Watch it here;  http://www.bloomberg.com/video/88453082/

He also says that investors should be getting out of stocks...because when you paste them into a formula that takes into account the real return on government bonds...stocks are not a good buy....meaning they are overpriced.

He didn't really tell us what to invest in...but this is certainly an example of one smart dude who is not buying all the "good news" that the media has been pumping out over the last few months.