-- Posted Wednesday, 9 May 2012 | | Disqus

The greatest blessing in my life, my daughter Tara, is 20 years old today. While witnessing her birth through today has brought joy only the Creator of All That Is Good in the Universe can give, during this period I’ve also watched my country spiral downward economically, socially and spiritually. Both sides of the political aisle are responsible and nowhere is that more true than in the grave financial condition we find ourselves in as a nation.

I have no cabins in West Virginia to sell, nor dry food supplies, guns or ammo but a sense of obligation to honor my Creator by sharing the knowledge He allowed this awful sinner to gather in almost 30 years in and around the financial arena. I can assure you that what I’m about to state is not “good for business,” nor will it win friends and influence people. In fact, most will not only wish they never read it, but just about everyone will literally pray I end up dead wrong.

My wonderful daughter, and the sons and daughters (and grandchildren, too) of those who read this are going to pay an enormous price for decades of over indulgences and total mismanagement by government and individuals. Better days for these generations cannot and will not be possible without severe economic and social pain. Our founding fathers did all they could to set in place measures that were to prevent such occurrences, but never-the-less here we are.

What we have witnessed in Greece and elsewhere is coming to the shores of America. And while the national election may either accelerate it or momentarily slow it down, make no mistake about it, the die has been cast and all the political rhetoric and rare actual good political deeds can’t prevent the inevitable.

I’m not the first person to say this, and thankfully I won’t be the last. The fact is America is bankrupted financially (and well on its way to socially, politically and spiritually, if not there already). The saddest point of this fact is virtually all Americans either don’t grasp it or if they do, hope it’s only a bad dream and they shall wake up and all shall be well again. While there have been a few brave politicians who have been willing to tell it like it is, and even fewer Wall Street types (perhaps that’s due to the fact that there’s not much in it for them to do so unless they sell cabins, dry food and ammo, and yes, gold), the ignorance of the nation is not surprising when you look at how other people in countries now already well into the nightmare also lived in denial.

The following video has made the dire financial situation easy to understand in layman’s terms. But don’t let the rather simplistic explanation make the enormity of the troubles any less than what they are.

I pray you took the time to not only watch it but to honor the producer of it and forward it to as many people you can.

As the video stated, it’s going to be painful and across the board. Unfortunately, class warfare is becoming more and more likely. It shall not only be the so-called 1% versus the 99%, but it shall be young against old.

The 55-and-over-segment of our population controls over 80% of what’s left of the wealth in America. There are now more people over 65 than under 18. In the last decade or so, the older (senior) segment of our population have seen two of the three areas of their financial and personal being take an enormous hit:

• Those who retired a decade or so ago and those who continued to retire up until fairly recently had assumed the ability to earn interest on the savings much, much higher than the 1%, 2% they can now. This caused many to seek out far riskier avenues, and many saw significant losses in principle (including being caught up in the mortgage crisis). There’s little chance that significantly higher and safe yields are coming their way as we insanely remain in a non-stop monetary printing press mode.
• From a decade or more before my daughter was born and for several years after her birth, we would hear how over time stocks and home values only go up. I doubt many of us would accept that belief without any reservation any more. By not doing so for many years now, real wealth and those who were dependent upon seeing that pass to them have taken a big hit.
• The last of the good old days is soon to be just a fading memory for the single most important segment of our population – superb medical care at a very reasonable personal cost. Medicare can’t continue anywhere near as it has been at a time when those who had such expectations are being hit hard due to the above.

How we go about dealing with the inevitable pain is going to go a long way on how the senior segment of our population chooses to go about it. They tend to take voting more seriously and, as noted earlier, control much of the wealth.

If that isn’t enough, there’s another segment that I fully anticipate will dig in their heels for their pound of flesh and soon may get to the point where there can never be a real solution. As this video accurately notes, we’re fast approaching the point where more than 50% of our population shall be directly or indirectly dependent on being employed by the government. How on earth can we expect those whose very livelihoods depend on big government vote to shrink it? Throw in all the Americans who depend on some sort of government support and we’re very close to a tipping point I assure you doesn’t have a happy ending.

Thankfully, a small but growing part of the population has looked under the carpet and seen all that has been swept under there. They have begun to understand the true ramifications of decades of excess and mismanagement.

The poster child for all that is wrong, IMHO, is our need for public storage facilities. America has too much stuff. They’ve bought into the lie that more money and things equal more happiness. Our parents and grandparents never needed public storage. Are we any happier than them?

There’s no quick fix but I can tell you we’ll know we’re finally on the right road to recovery when we see public storage facilities closing versus continuously opening up everywhere we go.

If what I said up until now hasn’t made you wish you never read this far, some of you will surely find my last comment to be the straw that broke your back: America’s only real hope is to do what our Founding Fathers did and return Almighty God back to His rightful place as the true leader of this once great country. No other solution is doable.

Happy Birthday, Tara … I think.

Note: Make sure you watch the two videos linked in this commentary

-- Posted Wednesday, 9 May 2012 | Digg This Article

Peter Grandich is the Managing Member of Grandich Publications, LLC (www.grandich.com).
The company publishes The Grandich Letter (first published in 1984) which covers the metals and mining industry, follows world markets and economies, and covers the Canadian markets from an American prospective.

Grandich also provides a variety of corporate finance and development services to publicly-held companies.

Peter Grandich is also the Managing Member of Trinity Financial, Sports & Entertainment Management Company, LLC (www.trinityfsem.com), a Registered Investment Advisor in the State of New Jersey. Trinity provides investment advisory services to individuals, small to mid-size businesses, professional athletes and entertainers.

Peter is a long-standing member of The New York Society of Security Analysts and The Society of Quantitative Analysts.

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