Being forewarned is to be forearmed !

Chris Mayer is the editor of Capital and Crisis newsletter. He has spent over a decade in corporate banking and in my opinion is a very intelligent individual. With a title for his newsletter like that, you might surmise that he knows both capitals and crises. His post yesterday was entitled When States Go Bankrupt. He reported this from the

Center on Budget and Policy Priorities: “At least 46 states face or have faced shortfalls for the upcoming fiscal year (FY 2011, which will begin on July 1 in most states).”

As you will be able to discern from the next couple paragraphs, it is getting rather predictable. More helicopter money will fall from the skies. Not gold coins pray tell, but helicopter money. Here is the line that caught my attention:

“In any event, what I see happening is a great big bailout from Uncle Sam, which itself is broke – bleeding astronomical deficits and in hock for record amounts.

In order to do that, the government will simply print what money it needs. We all know what happens then. The value of the dollar goes south.

To protect your wealth, stay with things, as opposed to paper, like bonds. Own hard assets, things like gold and oil. Own the stocks of companies growing fast enough to beat inflation.”

I agree with Chris. Aligning a plan to combat the coming potential dollar debasement and inflation are important points to consider that increasing look like they will be in Americans future. Be forearmed – buy gold!