CLOUDY FUTURE
Frankly, I don’t think the welfare state can survive for many more decades. The demand for subsidies and government spending grows relentlessly. More and more money must be created in a vain attempt to alleviate all of society’s suffering. However, passing out money to everyone creates its own set of problems. It weakens and corrupts the recipients. The resulting dysfunction requires even more money. Eventually, the exploding costs require so much newly created money that inflation destroys the value of the money and national bankruptcy ensues.
Inflation will be the problem soon. The virus put our monetary and spending requirements on fast forward. John Maynard Keynes wrote that Lenin was certainly right when he said “There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency.” This inflating sponsored by the welfare state can wipe out the people’s savings and send their cost of living to unaffordable levels. The resulting public bitterness will look for scapegoats. The left will be quick to point to the affluent as the culprits for this inequality. You can hear it now and this growing chorus of accusations will grow to deafening levels. The rich will get the blame.
The secret is to make so much money now that you can withstand the coming tax increases, the wealth taxes and the expropriations. I’m hoping to do that with my investments in silver. If Mr. Butler is right, silver offers great potential for extraordinary gains. I’m banking on him being right. From what I’ve seen recently, it looks like more turmoil ahead. Now is the time to hedge and hope the revolution dies.
