Pride Goes Before A Destruction…

…And a haughty spirit before a fall. You’ll find those words in the Bible, Proverbs 16:18. That verse is exactly what I thought when I heard that the stock market was reaching record highs. Last time that happened, we had the crash of ’08 right after. What happened in 1929, right after the ‘Roaring Twenties’? People are lead to believe that a high stock market means that our economy is in full recovery. The fact is, we have been in a full blown depression since 2008. The powers that be can cook up all the ‘facts’ they want, nothing can change the truth that we are in serious trouble. Inflation keeps rising, as does unemployment. No where near enough jobs are being created to put a dent in those unemployment numbers. Everyone reading this probably does not have to be told that the only thing keeping the stock market up is the plunge protection team and a lot of wishful thinking. You can thank Bennie Bernanke for all the good his quantitative easing (QE) has done.

The only thing holding up the dollar right now is blind trust. This blind trust is beginning to rapidly dissipate into a noxious cloud of anger, hatred, and betrayal. Some are already losing trust: the BRICS  nations (Brazil, Russia, India, China, South Africa). Russia, China, and India have been buying Iranian oil with gold, not dollars. What a coincidence that our leaders here are chomping at the bit to invade Iran? Saving the dollar was the cause of our going into the middle east in the first place. We bombed a straight line through the mountains in Afghanistan under the premise of fighting Al-Qaeda  (whom the government can’t seem to decide whether or not they are our enemies) and the Taliban, invaded Iraq (who did not do a blame thing to us, the 9/11 hijackers were SAUDI ARABIANS, so why were we in Iraq?), monkeyed around in Pakistan a little, bombed the crap out of Libya, and now we’re arming and training Syrian rebels, many of whom are our enemy (ok, they’re our friends here) Al-Qaeda. Why? Afghanistan didn’t want the pipeline run through their mountains. Saddam wanted gold instead of dollars, same as Ahmadinejad does now. I don’t have a bloody clue what O-Bomb-a had against Libya and I’m still a little foggy on why our government wants Assad outed. Probably they are fed up with the bull hockey the bullies… I mean, LEADERS, of this country have been giving them. Now Iran is on the chopping block.

What would happen if the blind trust were to give way completely? I’m no expert in such matters, but it could go something like this: Realizing that the dollar is completely worthless, countries try to offload their dollars en mass. That means that all those trillions of dollars will have to go somewhere. Right. Back. Home. Coupled with all these QEs, which is a fancy term for inflation, all this worthless toilet paper is poured back into our markets, bringing hyper inflation of the likes we’ve never seen. It would suck.

How long will the dollar last as the world reserve currency? I don’t know. It should not have made it this long. That’s why I only keep enough cash in the bank to pay my bills. other than that, I don’t trust financial institutions. When I think of investing, I think of hard assets  like semi precious metals (brass, lead, steel), food, and medical supplies. Personally, I really don’t have the extra money to buy silver or gold, so I scrimp and save for what little gear I can get. There are countries preparing themselves for the fall of a haughty nation, are you?

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