TruthMission

California has recently been in the news as being in big financial trouble.  Basically they spend 30% more then they bring in through taxes.  In comparison the US spends 67% more then it brings in through taxation.

I am still pessimistic on the US economy even though some believe the worst is behind us.

I also still believe we will see a major depreciation of the dollar vs commodities over the next few years if not sooner.  The Federal Reserve as increased reserves in banks by 17 times.  I believe once that money is lent out and put into the real economy is when we will start to see a stronger devaluation of the dollar.

So I still recommend people buy storable food and hard assets.

I don’t recycle and I don’t feel bad about it either.  Here are some of the reasons.

Peter Schiff calls gold a leading indicator of price inflation.  It just hit $1,100 and I don’t expect it will end there.

This is just a reminder to get out of cash and buy some real things.  Storable food, silver, gold, seeds, farming tools, etc.

Real estate is a maybe.  If you live where it is actually cheaper to buy then to rent then it might be a good idea to buy but don’t expect the price of your property to up much.  Price is a function of supply and demand and when price inflation happens it doesn’t happen equally throughout all sectors of the economy.

When calculating the cost of home ownership, be sure to add 40 – 45% to your mortgage to account for taxes, insurance and repairs.  But keep in mind that the cost of upkeep will likely go up as well.