The End of the U.S. As We Know It
So why not be realistic? Why not consider the true consequences of the $8.5 trillion in stimulus coming down the pike?
According to the Bureau of Economic Analysis (2005), if Texas were an independent nation, its economy would be the 15th largest on earth—ahead of Australia, Switzerland, Taiwan, Saudi Arabia, and Israel. The state is extremely business friendly; its constitution requires a referendum to implement an income tax—an initiative which has never come close to becoming reality. Texas has the longest contiguous border with Mexico, along with some very large port cities. Beyond all that, Texas sports three of the ten largest cities in the United States.
If that isn’t enough to make you raise your eyebrows, consider this: the economies of New York and California are both larger even than Texas’s.
Now, remind me again why these economic blocs would want to remain in a bankrupt union whose currency has failed?
I know you’re staring at the flag on your wall, tears coming to your eyes. I know you think I’m a traitor and a iconoclast. But before you get too patriotic, remember that I am a classical liberal—a Jeffersonian to the core. I am a student of the American Revolution, and I am passionately dedicated to the United States Constitution.
We do not live in the United States set forth by our Founding Fathers. The document has been violated, usurped, ignored, and bastardized countless times by U.S. Presidents, the Congress, and the Supreme Court alike.
The imminent failure of our currency and our economy will not be a sickness, it will be a cure.
So how do I see it all playing out? I firmly believe that once the dollar dies, people will once again come to recognize the inefficiency and corruption that comes along with the Hamiltonian dream of centralized government. Never again will citizens of any state or country allow their governments to control empty currencies on which we depend for our pursuit of life, liberty, and property.
In the meantime, watch Treasuries, the dollar, and gold. Treasuries have already started to unwind, although the Fed will undoubtedly buy the long end of the curve to try to keep yields in check. Of course, it will have to print yet more money to do so, and that will obviously only exacerbate inflationary pressures. Equity and real estate markets continue to fall, the flight to Treasuries has evaporated, and people are flocking to time-tested stronghold of gold—up dramatically in recent weeks.