Just in case you missed it, Hugo, (hombre grande) has put the death knell to the Venezuelan economically deprived. How did he do this? Well, last week he devalued the currency. The peso is now worth 4.3 to the dollar from 2.15 before the devaluation. This is the last gasp of a dying hombre and destitute country. Venezuela, notably has the best record of socialization in the hemisphere. Their oil and mineral sectors have long been controlled by the government as well as many other sectors of their economy. Back to the devaluation, because the peso is worth more 1/2 as much on the official scale, but only 1/3 as much on the black market, all imports will cost at least twice as much. Shortages will occur, the cost to the citizenry will become unbearable. But the ultimate payback will be to Chavez (Jimmie Carter's Amigo). In due time, the peoples revolution will occur. Those who Chavez claims to help (the poor) will be the ones to over throw the Dictator. Because most of his macho policies hurt the economically deprived, they will be the ones to lead the violent over throw of the socialist Dictator Chavez. The middle to upper class segments of the population have long anticipated this catastrophe and quietly moved much of their liquid assets out of the country. As time goes on, economic activity will get worse setting off the Revolution.  Bring it on,

This little tidbit was brought to you as a warning and a heads up to all Americans of the Patriotic bent. By spending the United States into Oblivion, we are headed on the same track as the Chavezistas. Our money will become so common that it will become almost worthless. The government will continue to print more greenbacks until our creditors tell us "no mas". As we alluded to above, imports will become more expensive and this goes for gold as well. The yellow metal waits for no country, it has been the storer of wealth since time immemorial and it will continue to do so for many years to come. Look at the precious metal complex as insurance, buy some for your own financial health. If no calamities occur, you will at least have peace of mind. If a major financial tsunami takes place, you will be in the drivers seat.

What can happen?

1. debt is rising faster than we can service it leading to a Revolution
2. social security is fast approaching bankruptcy  which will cause a culture clash
3. medicare is entering the bankruptcy court  affect retirees way of life
4. low interest rates will explode in the very near future causing undue burdens on the private sector
5. government employment continues to grow creating heavier tax burden on the private sector
6. private sector will invest less and move to friendlier countries
7. low interest rates prevent market rate dividends that would ordinarily flow to savers causing capital to flee the U.S.
8. creditor countries will become reluctant to hold greenbacks causing the price of precious metals to skyrocket.
9. states and municipalities will entertain bankruptcy to release them from onerous union contracts and pension obligations