After all, he did tell them that if they continue to spend, which creates deficits; and not tax, which creates the need to create debts to pay for that deficit spending, which depresses the value of the USD, which leads to inflation and higher interest rates; and if interest rates are going to grow faster and the mountain of debt is growing faster, there is only one result, which is economic "destabilization".

He even told these elected representatives that their constituents no longer are willing to help because they now find importing foreign made goods quite acceptable as to price and quality. So the ball is in their court.

Do you think they get it?

More importantly, do serious capital owners and managers believe the U.S. Congress is going to do anything about it, or do they feel that destabilization -- Greenspan's word "- is inevitable? If you accept my take on things, then the answer is obvious.

Sell stocks. Sell bonds. Clear your debts, including short-term mortgages. Accumulate cash. Buy gold. And, if you've got a job, hope you can keep it.

In a scene right out of ‘Back to the Future', America has returned to the 1970s. Stagflation is actually a better word to define the times than what Greenspan referred to today, i.e., system destabilization " at least the image of destabilization.

This market is going south. Dow 10,869 today was the cycle high.

BCara@BillCara.com