Warning--economic meltdown

On the heels of the Obama administration's revised deficit numbers which show a projected 9-trillion-dollar deficit rather than 7 trillion as originally predicted, the Feds today rolled out some more 'revised' figures that should send the warning flags waving frantically.

The White House Budget Office released figures this morning showing that if the government continues on its present course, the nation's deficits could reach three-quarters the size of the entire U.S. economy.

As if that were not enough, White House economic adviser Christina Romer admitted that the economy will shrink by 2.8% this year rather than the 1.2% rate of contraction predicted by Obama earlier this year.

Romer also predicted that unemployment will continue to rise, reaching at least 10% before the end of this year.  She further stated that Americans should brace themselves for the jobless rate remaining high throughout 2010...at least more than 9%.

These grim unemployment figures should take us right into the 2010 mid-term elections.

Unfortunately, these admissions on the part of Obama administration officials were not unexpected, despite the rosy scenario painted by Obama and the Democrats, as well as their cheerleaders in the mainstream media.  Many of us have been sounding the alarm over the spending spree of the current government in the midst of a deep recession.  We have also warned that the monetary and economic policy being pursued  by Treasury and the Federal Reserve will lead to unmitigated financial disaster for the country.

Most of us realists do not foresee any significant economic recovery for years to come.  To the contrary, the current policies of spending, printing more money, monetizing the debt and then auctioning off the notes which only serves to create more debt, will lead to a financial meltdown that has the potential of being worse than the Great Depression.

Why?  Today many more Americans rely on credit and accumulate much more debt than did citizens back in 1929 at the time of the stock market crash.  And many more Americans have significant assets tied up in investments on Wall Street than did citizens during the 1920s.

What, then, can a prudent citizen do to protect themselves?

Try to avoid banks as much as possible.  Deal in cash whenever you can.  Purchase gold and silver.  Note I did NOT say 'invest' in gold and silver 'accounts.'  The key is to purchase the actual gold, silver, and precious metals that you then keep in your possession.  Avoid investing in T-bills, stocks and bonds, money market accounts, etc.  Avoid real estate as an investment.

My disclaimer for these suggestions is that I am not an economist, nor am I a financial adviser or a financial planner.  I am no expert in these matters.  I am merely passing along what I, myself, consider to be a prudent plan of action during a precarious time   But, in the end, the choice is up to you.

If you believe as I do that the U.S. is headed toward a devastating financial meltdown, and if you have been greatly disturbed as I have by the policies being implemented by the financial charlatans at the Federal Reserve and the Department of the Treasury, then use your head.  Common sense will dictate your plan of action.

Your primary objective is to protect your assets in the event of a meltdown.  We are going to be in a 'defensive mode' for quite some time to come.

Source:   Yahoo News

For more commentary on other issues, visit my blog at The Liberty Sphere.