Nevada Congressional candidate's advice to 3rd District residents and all Americans

It is imperative that the residents of Nevada's 3rd Congressional District, as well as all Americans, understand that we are living through a slow-motion run on real wealth. This is due to the inflationary policies pursued by central banks all over the world, but especially the Federal Reserve.

The United States has been running an unsustainable account deficit for decades. Rather than Washington coming to its senses, the policy pursued has been aimed at trying to conceal the insolvency of our financial system by further undermining savings with more and more inflation (i.e., an expansionary monetary policy). In other words: the supposed solution to insolvency is to become increasingly insolvent.

You will feel the effects of present policy by noticing rising prices in real terms, and also nominal terms. It isn't that anything is becoming more valuable, but that the dollar is becoming less valuable. Gas prices will keep rising, food prices will keep rising.

When you find yourself struggling to buy the basic necessities of life due to the inflation, understand that the problem is completely political. Rising prices are not a feature of a free market. Inflation is a monetary phenomenon. The reason why the Fed is inflating to hold interest rates down is for the sake of the biggest sub-prime borrower of all, i.e., the U.S. government. This is all about politicians wanting to continue the promiscuous spending, not wanting to relinquish a single inch of power.

The message the market is sending is that we can't continue to pay the bills with inflation. Our foreign creditors have accumulated huge amounts of dollar reserves. The dollar-dumping phase has begun, as our creditors are demanding payment in specie. It is important to get out of dollars as fast as possible.

I know not everybody can afford gold bullion. But there are other measures that can be taken to protect yourself. I believe silver bullion is still relatively very cheap. You can get yourself water filters, storable food supplies, storable seeds, etc. The idea is to obtain things with intrinsic value.

I do not recommend buying equities, bonds, nor anything that is denominated in dollars. Inflation, which engenders pseudo-rates-of-return, is not equities-friendly. The fact of the matter is that we have been in a bear market for the last decade. The stock market never went up in real terms. The gains were strictly nominal, and one can see that by pricing the Dow in ounces of gold - it went from about 45 to 9 over the last decade. It was all the result of inflation, and real incomes have been steadily declining due to a rising cost-of-living.

As we move into the future, I believe you will find my advice to have been right.