Tuesday, November 11, 2008

Worst Case Scenario

Perhaps, Senator McCain will be happier in defeat than facing an unprecedented economic crisis that he or Obama or anyone else will find unmanageable. Pat Robertson reported that $300 trillion are at risk in the derivative markets-a figure of such an astounding magnitude as to dwarf the US, indeed the world economy. No actions by a single government or the world's governments acting collectively may stave off the collapse of currency. Stories abound of people with wheelbarrows of money going to buy bread in late Wiemar Germany. The same situation exists today in Mugabe's Zimbabwe. Don't be confident that a similar calamity could not happen here. Middle class families who have never known privation or hunger could face it soon. If someone does not grow there own crops, have a barterable skill, or have a tangible asset(gold, diamonds, something illiquid not fungible but with real inherent worth), they may not eat. Concerted action now to save banks or automobile producers may be necessary but who could be certain of the value of paper printed by governments that have overseen the avalanche of negative financial news and not been able to staunch it. Ultimately, we must follow the advice printed on our currency "In God we trust".Those who seek temporal satisfaction are too often blind to eternal truths. Those who cleave to God are never hopeless, for their faith is salvation.

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