Inflation

When witnessing either a con-artist or a magician at work, it is critical that you stay focused on their hands, not their words.  Like some of our politicians, their success depends on their ability to mislead you.  An example is the current debate on inequality.

While there are some adults in Washington, apparently the majority of them are not.  Consider the following facts:

1. The U.S. Senate has not even had a budget hearing, much less created a budget, since the combination of Obama and Reid was created;
2. Our president talks in terms of not raising taxes, except on those he labels as “rich”, but everyone’s taxes went up dramatically the last two years;
3. The 2013 fiscal deficit declined, but a large portion of the decline was from those who in 2012 sold assets to take advantage of the lower capital gain rate, thus paying their tax in April of 2013.  That one time surge will not happen again in 2014, so the deficit may increase again.

Here are the facts on which you want to focus:

1. The U.S.A. Gross Domestic Product (GDP) is estimated this year to be around $16 Trillion;
2. The total U.S. debt of our government is over $16 Trillion, and headed up at a rate of over $1 Trillion this year;
3. Unfunded liabilities of our federal government, including pensions, Social Security, Medicare, Medicaid and various other government programs is now approaching $100 Trillion or six times our annual GDP;
4. The Federal Reserve has been buying $1 Trillion a year of our debt, which has been funding our deficit but distorting our economy’s feedback system.

These facts are more typical of a Central American or South American tin dictatorship than the United States of America.  We literally cannot afford ourselves.

The consequence of not controlling our spending is inflation.  In times of inflation hard assets win and you cannot eat gold.  So our recommendation is for you to go buy a really great tract of land.

A really great tract of land is the best long-term investment possible.  Not every tract of land will benefit to the maximum from what is coming.  The really good tracts of land will benefit most.  Call us.  We would love to help your investment look brilliant.