I posted an article on our forum a few days ago, which is a warning from Forbes Magazine explaining why it is risky to own property in California (or several other troubled States) or own any bonds issued within the State. My message was: ” It doesn’t take a genius to see how all of the mismanagement is finally catching up. Short of a miracle, California’s ship is going to sink!”
In response, one of our forum members, Big John, asked, “…will I (we) lose access and rights to the unpatented mining claims that I have worked so hard to attain and maintain for my family?“ I believe this question, and others like it, are on a lot of people’s minds at the present time. As uncomfortable as it may be, here is my answer:
Good question, Big John!
My crystal ball is not any better than yours on how things are going to be after the “huge correction” that is certainly coming to California and the U.S.
Huge correction? Well, our “leaders” are debating right now in Washington how to avoid Armageddon in January if we just make a 10% cut in existing overspending by the federal government. This is largely about trying to lessen the pain of an automatic cut from the federal budget of 109 billion dollars for each of the next 10 years, while overspending is still projected to be 10 times that much. Yes; the big fight is over only 10% of overspending!
The truth is that there is no real fiscal responsibility being promoted by either political party. Even if the sequestration budget cuts begin in January, our federal government is still going to be running us another trillion dollars or more in the hole every year! So what is all the noise about? In the Philippines, when someone is laying a bunch of BS on you, it is called “bula bula!” There is so much BS here, I have grown accustomed to questioning nearly everything that is said.
The truth is that we are being fed a line of bula bula by our politicians and the press while America’s ship is sinking by the day. What good is bailing 10% of water that is rushing in to sink the ship? The big fight is over 10% while nobody is doing anything about the bigger problem!
No matter what the government decides to do about the “fiscal cliff,” they clearly intend to continue overspending a trillion dollars a year (best case scenario). And since borrowing is getting more and more difficult, the only remaining solutions are (1) to confiscate and consume more resources from the private sector, and (2) to print money. Printing money means stealing value out of the existing purchasing power of the dollar. Both of these remaining solutions will move California and America faster and faster towards, perhaps, the worst and most violent correction in the history of the world. Anyone who thinks I am being overly dramatic should come to terms with the worst case scenario.
All these “billions” and “trillions” numbers are tossed around so much these days, we become deaf to the reality of what they really mean. Here is a short video segment which places the reality in a visual perspective. I warn you that the reality is shocking! Please pay particular attention to how much money a trillion dollars is. That or more is what our federal government is planning to overspend in each of all the years in the foreseeable future, regardless of all this noise we are watching on the television!
And as big as that problem is, it pales compared to what America’s unfunded entitlement obligations have grown to. I’m talking about social security, medicare, medicaid, government pensions, and hundreds upon hundreds of other obligations that American taxpayers are going to be held accountable for. To get a reality on that, you would have to take the whole 16 trillion dollar debt and make it five times larger!
Watch the video! And then try and tell me we are not being led to the slaughterhouse!
My personal outlook is to hope for the best and plan for the worst. Every problem, no matter how big, represents certain opportunities if you can find them. That’s where there is reason for hope. I have zero hope that our government will ultimately adopt policies that will move us in the right direction (expanding private wealth creation). But I do have some hope that red blooded Americans may pick up the pieces after the crash and possibly put America back on its founding principles. I believe a lot of people will be willing to fight for this. But I am only hoping.
The worst case scenario when all of our excesses (government gone wild) catch up with us are painful to even contemplate. I suggest things could get so bad that even law enforcement might take shelter. One reasonable scenario is that the remaining “officials” will be too busy dealing with violence and mass starvation to worry themselves with red blooded Americans out minding our own business making a living out on our mining claims.
There comes this flashpoint when people get fed up with the shenanigans (millions unreasonable policies; millions of unreasonable public officials) of government and take things in their own hands. Some will turn to violence since they have no viable solutions. Others will go back to creating wealth from the land. This is what we do.
When the population totally loses faith in the government, there will not be enough police to enforce every decree of the failed State. Many police will be sympathetic, since their pensions will likely also be wiped out. Anybody who believes the government will look after its own should pay attention to what happened in Benghazi! Good luck for the few who will still be out there trying to the enforce the unreasonable policies of a failed State.
I have covered these scenarios, which are certainly coming to America, in two chapters of my new book. I encourage you guys to read it!
My advice, Big John, would be to hold onto your mining property and make plans in advance on how you will rely upon your own labor to support yourself and your family when the time comes that there are no other solutions but to stand in a government food line – which probably won’t even be there. Where will the food come from to feed the masses if everything comes to a stop? While things will be tough, I suggest that the gold you mine will trade for essentials that others will produce, even if it is “against the law.”
People don’t like to face off with the realities of our time. Maybe that is the reason we are in so much trouble?
I am suggesting that if a person doesn’t get his car off the tracks when the train is coming, he is in for a very big reality check. There is plenty of warning that the train is coming. It is the biggest train in history, completely out of control! Those who do not take personal precautions are going to get run over. Your mining property, and all of our New 49’er properties, provide a solution to the difficult times ahead when the big financial correction finally happens. That could be pretty soon.
Thanks for asking the question, Big John! I’m trying to answer your question without getting too radical, without being put on the “bad boy” list, and without promoting violence. How did I do?