AMERICA AT A CROSSROADS?

From "Country at a Crossroads 11/19/09 www.Safehaven.com by John Browne

" . . . The country appears to be going through a period of buyer's remorse over the election of Barack Obama. The majority cobbled together by the President one year ago included the Democratic base, independents hoping for "change," and many disaffected Republicans betrayed by the Bush Administration's big-government neoconservatism. It is unlikely that most of these voters favored an overt push toward socialism; however, this is what they have received. As the 'tea parties' illustrate, voters are not only confused - they are seriously concerned.

These concerns are justified. The Administration's hard-left turn was evident from the outset. Ignoring expert advice to spend on job-creating infrastructure, Obama spent wildly on entitlements. Now, with rising grassroots discontent, a falling currency, and threats to America's AAA credit rating, there is some evidence that the Administration is trying to hedge its bets through tough talk. Yet, they still have not taken any tough action. As their gold stockpiling highlights, foreign governments are not only confused - they are seriously concerned.

Over at the Federal Reserve, no such soul-searching appears to be underway. Its chairman, Ben Bernanke, is clearly intent on avoiding deleveraging. He has charted a course of massive liquidity injections, financed by hitherto unimaginable levels of monetary inflation. He has even attempted to coordinate these expansionary policies on an international basis.

. . .if the government continues to run the printing presses, as seems far more likely, hyperinflation will become a distinct possibility. While this may create the appearance of recovery, with rising stocks and less short-term unemployment, average citizens will notice a sharp decline in their standard of living. It will get harder and harder to 'make ends meet' as wages increase less than the cost of everyday goods.

The hyperinflation scenario will likely buy the Administration a little more time, but would eventually give way to the worst of all possible worlds: hyperinflationary depression. Here, America would feel a deep recession concurrent with rising prices - similar to what we're seeing right now with gold. This is truly a devastating outcome and should be avoided at all costs.

America is at a crossroads. It is important in these times to have leaders we can trust to make the right decisions, even if they are unpopular. Obama, Bernanke, Reid, Dodd, Pelosi, Frank... These are not names that are trusted to make wise choices over expedient ones. The markets know it; the voters know it; and, judging by the price of gold, the rest of the world knows it too."

Mr. Browne suggests that America is at a crossroads, meaning it can still turn back from the abyss. Sorry folks, there is no turning back from this mess brought on by duplicitous self- serving leaders in banking and politics, and enthroned by an unthinking media dumbed down populace.

Regrettably, there only remains the cliff-fall and prayerfully the recovery, but probably not until this generation and the next have passed.

With Love and Kindness,

THE HATMAN