Nobody's paying any attention to this, but I'm going to say it anyway: I told you so. :)

I'm posting this because I believe there may be people who read this who have wondered what is going to happen next with our financial situation, and are uncertain what to do. If you are honest enough to see the warning signs on the horizon, and do not believe everything you hear, then this is for you. Maybe these books will help you as they have helped me.

One observation: your understanding (or lack of it) regarding how the dollar works is going to largely define your financial situation over the next ten to twenty years. Not your job, not your debt, not your savings, and not your investments. Your understanding. Because it is your understanding of how money works that defines what you do with it.

For starters, you need to read "The Creature from Jekyll Island". This will give you an understanding of how the Federal Reserve came into being, how much power it has, and what exactly it can do with that power. The book is a bit long-winded, so if you get bored, read at least about the first half. You'll get the drift.

Next, read "I Want the Earth, Plus 5 Percent". This is a short story that will help give you an understanding of the machinations of interest. Its a fun read, and will start opening your eyes to how a fiat currency works.

Then read "The Guide to Investing in Gold and Silver" by Mike Maloney. The first half of the book covers how "money" works, and how it has been abused by EVERY government that implemented a fiat currency. It also clearly shows the outcome of that policy.

Finally, read "Conspiracy of the Rich: The Eight New Rules of Money" by Robert Kiyosaki. I started reading a loaner copy last week (had to give it back), and mine is on the way, so I'm not done yet.

This should get you started in the right direction. You can buy these books for a total of about fifty bucks. It will be the best investment you've made in your financial future. If you don't have the money, check your local library.

Understanding our financial system is the key to making it work for you. If you do not understand it, you will be constantly working for those who do. Which side of that fence would you like to be on?

I do not profess to understand the subject completely, but reading these books, and observing what has been going on in our world has been very instructive to me over the last three years. I hope they help you as much as they helped me.

If you have read these books, and know of something else I should be reading, please let me know!

Obama Pushes Banking Overhaul

When legislation fails, the solution is more legislation. Does this sound illogical to anybody else?

Folks, lets get real. The problem isn't legislation. The problem is people. If we haven't got the legislation right by now, what makes us think we ever will?

Can anyone give me an example of one single person who was tangibly punished for the violations that led to the collapses we witnessed in the last 12 months? No? Maybe this isn't about legislation....

Maybe, just maybe, its about something more sinister. Maybe.... its about control. Control that wants more than clean, transparent governance of the people, by the people, and for the people. Governance that now wants to control how people think, respond, function.

One thing you can be sure of: more legislation = higher costs of doing business. If the bank's costs are increased, you can be sure this will be reflected by higher interest rates.

There are many causes currently coalescing to drive our interest rates through the roof. The money supply, the deficit, the increased meddling with banks, the machinations of the Fed. There is only one way out of the hole that the U.S. deficit is digging, and that is with massive, massive inflation.

The future is always uncertain, but right now it seems especially so from a financial standpoint. The U.S. dollar is no longer viewed as the safe haven it once was. The U.S. financial system is clearly not the powerhouse it once was. There are many reasons for this. Due to my beliefs and biases, I not only attribute the current weakness to violations of fundamental principles of stewardship and finance, but also to purposes that are shaping the geopolitics across the entire globe. That subject is far to large to receive justice here.

I offer several observations from this:

1. Now is a really good time to have no debt. Debt expects that tomorrow will be as good as, or better than, today. There are significant indicators that our tomorrows may not be as good as they have been.
   
2. Now is also a good time to be as independent as possible from the supply chains we so easily become dependent on. I know its not very practical to become totally independent, if such a thing is even possible, but there are some things one can do. A large garden providing a lot of your own food is a good start. Planning ahead at least 30-60 days for normal consumption needs can mitigate the risks inherent to sudden difficulties with our normal supply chain. I believe that our reliance on technology to shrink inventories in supply chains has made us especially vulnerable to failures of the supply chain. Any serious failure in the supply chain can quickly escalate, with severe implications for the stability of the populace. Locate and identify good local food resources.
   
3. Now is also a good time to ensure the safety of the value of your cash, if you have any. Land and precious metals are generally immune, in terms of real value, from the dying pains of a fiat currency. The bank is not your friend. You may have friends at the bank, but if the bank fails, you will suddenly find that the bank is: Not. Your. Friend.
   
4. I believe we are nearing a high on the DOW, and the stock market in general. If you have funds invested, this may be a good time to take profits. Look for ways of ensuring the safety of the value that your cash currently represents. Refer to #3.

I believe the greatest danger to many people right now is complacency. The assumption that things will go on as they have for the last 10, 20, 50 years. I do not believe this will be the case.

I know I sound like just another survivalist. However, I think if we're honest with ourselves, we can see the warning signs. Even if nothing goes seriously wrong, there is no harm done in being very careful with one's finances right now.

If you wish to have further insight into where we're headed with our currency, I suggest you read The Guide to Investing in Gold and Silver by Mike Maloney.

For an excellent discourse on how interest works, you can read I Want the Earth, Plus 5%

We have built a sand castle with the illusions of our fiat currency, our efficiencies of mechanical energy, and modern technology. All of them help create the mirage that we can work less. However, the net effect is for everything to cancel everything out - and in the end, it appears to me to be a zero-sum game.

The wheels of the world are beginning to turn more slowly. Are you ready?

If you're an artist and do a painting, or maybe a sculpture of some sort, you get to display your work for everyone to enjoy and admire when you're done. Maybe you're an architect, and everybody gets to admire the beautiful building when its done.  Or maybe you're a great cook, and everybody gets to enjoy your food. Et Cetera.

But if you're a programmer, your most beautiful artistry, the code that is woven into a perfect tapestry like some sort of a fantastic musical, gets compiled into a simple little file that nobody sees. Nobody cares. In fact, its probably even copyrighted, and maybe even trade secret. Users only get to see the boring part, the user interface. They don't get to listen to the real music.

When was the last time you've seen some sort of algorithmic process printed out and hung on the wall? Yup, I didn't think so.

My wife is asking me if I feel slighted. Yes, very.

I should post a beautiful little piece of code I created over the last two late nights of code and iced tea.

But I can't. Its trade secret.

I am not kidding: we just got the following email at my shop.

"Hi I was wonder if i can get a Job im am 20 year old and I was Good on computer and repair like that and"

How would you like to have this guy work on your computer?