Stocks are taking a massive dive on news that Standard and Poors, one of the leading rating and outlook agencies in the world, has changed its outlook on the United States. They now claim that our outlook is “negative”. They explain that our debt and budget deficits will probably not be remedied by our politicians.
In other words, now even politically correct parts of the financial establishment are agreeing that our government is too massive, spends too much money, and our politicians probably aren’t going to fix the system.
This is absolutely incredible, because it means that we all need to get used to the fact that the United States isn’t going to be getting out of debt, neither party seem to really care about anything besides politics, and the best thing to do is to prepare for higher prices and a lower dollar. How to do that? Two of the best ways are gold and silver coins.
Standard and Poors is right, though. The US economy and the federal government both don’t have incredibly bright fiscal futures. Just a few weeks ago, the government almost shut down, and plenty of believers in limited government somehow believed that it was because Republicans were fighting for a smaller government.
Unfortunately, they weren’t. Democrats and Republicans agreed on how much to “cut”. They just disagreed where. Both parties support the same size of government — they just disagree on exactly how to waste the money.
In the end, the cuts were made, and they ended up being actually less than 350 million. Not even 1% of 1% of a cut. This kind of “drastic” cut almost shut down the Federal Government. Politicians simply don’t have what it takes to get the job done in America.
So what should you do? I’m personally living frugally, and taking every dime I can get into financial security, which means a lot of silver and a lot of gold.