When my father was born in 1900, the National Debt was $2 billion. In Ronald Reagan's first term, it crossed the $1 trillion mark. Twenty-five years later, it stands today at $10.7 trillion. Does anyone know what the National Debt will be twenty-five years from now? The second derivative of the curve of National Debt vs. year is positive, meaning that the number should cross $100 trillion in less than another twenty-five more years.

What will the value of the dollar be then? What will the degree of inflating be then? What will our economy look like? Will foreigners continue to buy United States' debt?

The House is holding hearings to revise the popular IRA. Why? Workers fund their IRAs with pre-tax dollars. The Federal government realizes no taxes from these employees until the IRA begins to be used for retirement income. And for new workers, that could be as many as thirty or forty years.

In Franklin Roosevelt's time, the government's share of GNP was 3%. Today it is 21%, and growing. When universal health care is imposed upon the populace, expect significant new government spending. This will further accrue to the current share of the nation's expenditures. Such new spending will dwarf any "stimulus" package now being considered by the incoming administration.


Simply put, the European experiment with socialism is coming here. The Federal government will be taking on significant additional debt. Private industry will be saddled with the need to carry even more government employees who will be lost to productive pursuits.

That is why I tell all young people to do two things: first, buy gold at pace. Second, open and fund a foreign bank account. Pay your taxes, report the account to the Treasury to conform with the law. And if Armageddon occurs, run to your money.

Poopy