Time To Making the Chicken Run With Your Financial Assets?

Time To Making the Chicken Run With Your Financial Assets?

Doug Casey

Doug Casey explores the idea whether it’s time to “make the chicken run” so you can preserve your financial assets, not to mention yourself, at this point in U.S history.

He explains:

“Making the chicken run” is what Rhodesians used to say about neighbors who packed up and got out during the ’60s and ’70s, before the place became Zimbabwe. It was considered “unpatriotic” to leave Rhodesia. But it was genuinely idiotic not to.

Doug explains how the events of Rhodesia are applicable to today.

Now, in 2016, the U.S. is in real trouble. Not as bad as Rhodesia 40 years ago—and definitely a different kind of
trouble—but plenty serious. For many years, it’s been obvious that the country was eventually going to hit the wall, and now the inevitable is rapidly becoming imminent.

Most people are thinking, “C’mon, it’s not really that bad, is it?” Let’s face it, most governments are not going to tell their citizens how bad things really are. They don’t want to generate “panic.” Most people in the United States have never faced the economic collapse of a government. So, they don’t have a clue what to look for at that point.

That point—economic bankruptcy accompanied by financial chaos—is quickly approaching for the U.S. government. With deficits over a trillion dollars per year for as far as the eye can see, the U.S. Treasury will very soon be unable to roll over its maturing debt at anything near current interest rates. The only reliable buyer will be the Federal Reserve, which can buy only by creating new dollars.

And what does the creation of new dollars mean to the citizens?

In 2008-09, most of the money creation through the sales of bonds was bought by foreign governments in exchange for maintaining the stability of the US monetary system. They needed that stability because international transactions were all done with US dollars. It also meant that all of the inflation caused by the “printing of the dollars” was actually exported to other countries, with hardly anyone in America even noticing.

However, they learned their lessons. Since then, the main buyers of the bonds during the last near collapse have been purchasing all the gold that they could get their hands on. Several of them have broken away from using the dollar as a medium of exchange. Most of the transactions have been done using the Chinese yuan…and a few using the Russian ruble.

So, with only the Federal Reserve to buy the the US Treasuries in order to create more money, that means all of the inflation from the process of creating more money will stay in the United States.

One thing you can absolutely count on is that everyone will look to the government to “do something.” Americans really do think governments control the way the world works. Another certainty is that the U.S. government will “step in” massively, because everyone will want them to, and the politicians themselves believe they should. This will greatly aggravate the crisis and make it last much longer than necessary.

The question one needs to ask is: will you’d be better off financially, or personally, if you’re outside the country when the stuff hits the fan? And, is it better to exit too soon, or too late?

If you’d like to consume the rest of Doug Casey’s perspective, you can read more at internationalman.com.