Would You Buy A Car From This Man?

The third possible tipping point for 2006 has to do with ethics, and in particular, the ethics of our current administration. As you may recall, back on December 21^st, I wrote about the then emerging story about President Bush ordering thousands of illegal wiretaps. What made them illegal? The fact the he did not obtain the permission of the FISA court.

Now George claimed at the time that he had the permission of the congress, (which doesn't count by the way) and that he was doing his duty to protect the citizens from terrorists. Sure it sounds good, but if we all applied that logic to our everyday lives, law and order would be out the window and mass chaos would be the order of the day.

Shortly after this story broke, the FISA judge resigned. That should have sent up warning flags to everyone that something was amiss.

Now we read that the Whitehouse is saying that the NSA did this wiretapping without the president's knowledge. Bull!

Now I ask you, do you really think that in the short span of two weeks, we have all forgotten about Bush's comments about permission and protection and all of that? Do those folks in the Whitehouse actually think that we all partied too much and forgot the president's words on the 21^st? I don't know about you, but I think not.

So, you may be wondering how this could become an economic tipping point. Well, the fact is that from this side of the future, it is often difficult to see a coming tipping point. And as the name implies,a tipping point is present because everything is hanging in precarious balance and often it doesn't take much to tip the scale. For you physics folks out there, you are well aware that the force needed to upset the scale is much less than the force needed to rebalance the scale, which is exactly why once the economic scales are tipped, it will not be soon or easily rebalanced.

If this incident, along with the Valerie Plame affair, which by the way is far from over, really hits the fan and people start calling for impeachment proceedings, the rest of the world is going to start questioning a government that is creating dollars out of thin air and living high on the hog at the expense of the rest of the world.

And lest you think that you and I are poor, consider this, if you live in a house, drive a car, and have enough to eat, you are in the top 5% of the most wealthy people in the world. Believe me, everyone else in the world is looking at you with envy in their eyes. They would like nothing better than to see you fall.

The point is that all of this domestic uncertainty could lead to a loss of confidence in the dollar, heck I have lost confidence in the dollar. Loss of confidence means a drop in the dollar. And a big drop it could be.

The result of the drop? Well, economists and analysts argue different scenarios. We could see high inflation, maybe even hyperinflation, similar to Argentina in the 90s. Some believe, and our new Fed chairman is in this camp, that we might see severe deflation, or even depression, similar to the 1930's. The other option, which is not talked about much, is a hyperinflationary depression. This option gets my vote for most likely to occur.

If the dollar drops hard we could wake up one morning to a dollar with the purchasing power of the peso. What would that mean? Try $12 bread, $30 steaks, and $15 gas. In other words, things would get wild for the average folks in this country. After a rousing bout of hyperinflation, demand for houses, food, fuel, and trinkets from China would fall through the floor and the depression would arrive in full force.

If you have received and read my free report "Five Things You Must Do Now to Protect Your Investments" then you can rest a little easier knowing that you have prepared for the coming rough times. If you haven't read this free report, click on the link below and get your copy today, before it is too late.


Click here and receive your free report immediately without any delay.