The "what-ifs" of 2012

The 'what-ifs' of 2012 Originally published December 16, 2011 The Frederick News-Post By Steven R. Berryman

[Editor’s Note: Due to an error by the editor, Steve Berryman’s column did not appear in Friday’s edition.] Are you in stocks, bonds, gold, or real estate? Or, what if life is just paycheck-to-paycheck, and choices made daily contain immediate consequences? With a record number of imponderables hanging over our heads like Damocles’ sword, how does one function financially, or as a business, in our new world of “never seen that one before”? Being able to see just over the horizon has been necessary for planning and investment decisions since the beginning of time. Watching trends and monitoring indicators had been useful tools. A predictability of risk had made choices and investment easier, and trends more trustable. With the consequences of the Great Recession still upon us — no matter the political definition — we must consider the sheer number of “what-ifs” surrounding us carefully. What if our stock exchanges were really rigged by insiders, such as your senators and congressmen who operate with impunity and immunity, making money coming and going based upon insider trading knowledge that gets others arrested? What if institutional investors could use computers to get into and out of the market in less than a second and predictably siphon off money? The above examples make “timing the market” seem like an antiquated concept, and holding for the future a fruitless exercise. What if the world stopped using the United States dollar as its “reserve currency”? There had been days when all oil transactions and balance of trade deposits were required in the form of our money, making it more valuable. Today our monetary policy is globally based, and the result has been to make incoming goods cheap to people that are less able to afford them. Job export and extinction of manufacturing was the cost. What if gold hoarding nations such as Russia suddenly decided to liquidate their holdings based upon fears of a global sell off? Will rumors of international collapse, as in the nation of Greece, or the dissolution of the European Union cause an irrational sell-off panic? Closer to home, California continues to suffer as a bellwether state, stuffed with entitlement excess and liberalism costs. The economic impact of a long-term acceptance of illegal immigration also contributes to a circumstance that may cause our largest state to become bankrupt, seeking cash form our Federal Treasury. With a rush to relief, how far behind could Michigan and others be? What if taxation of the Internet became essential to saving the U. S. Postal Service? A quarter per email? What if your mortgage interest deduction became a pawn of the Democrat-Republican class warfare? Watch out, because inflicting pain directly upon unwitting Americans for short-term political advantage is now routine. Economic solutions to the punctured housing bubble have proven to be a fraud and a waste. We can’t know all, but can hedge against the forces of ignorance. The answer to all of the above is to remain aware, stay informed, diversify your holdings, get involved, and fight our sewer of national apathy with all of your resources. Steven R. Berryman writes from Frederick srbmgr@comcast.net

Please send comments to webmaster or contact us at 301-662-1177. Copyright 1997-11 Randall Family, LLC. All rights reserved. Do not duplicate or redistribute in any form. The Frederick News-Post Privacy Policy. Use of this site indicates your agreement to our Terms of Service.