by Eric Fry
A revolution is underway – one that will topple the existing order.
It’s not the sort of revolution that decapitates monarchs or murders czars. But a revolution is underway, and it is the kind that’s going to overthrow faith in government.
But that’s not necessarily a bad thing. In fact, it might be a very helpful thing.
I think it is time now to begin investing as if there were no government guarantees…or at least no reliable government guarantees.
For my entire lifetime, no financial guarantee has been more reliable than the guarantee of the US government. The T-bond was the safest security, the dollar, the safest currency. No one doubted that Medicare, Unemployment insurance, food stamps, Social Security, etc., would be there for them if and when the time came.
But that confidence is wavering. Treasuries and the US dollar remain the go-to assets in times of stress. But at the margin, faith in a government guarantee is wavering. As this cycle unfolds, I predict that faith in government guarantees will all but disappear.
Why do I say this?
Because governments in the West are already growing feeble and untrustworthy. And not just economically. There are some sociological trends that are pointing in the same direction. As you examine life here in the States, for example, it is easy to see a government that is becoming a bit unreliable, at best, and hostile, at worst.
In fact, I would argue that the same government that initially advocated “life, liberty and the pursuit of happiness” is actively standing in the way of all three...
Read more:
http://lewrockwell.com/orig11/fry4.1.1.html
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