Harsh Times Ahead Amid Inflation and Budget Shortfalls

    RALEIGH, NC, February 27, 2011 /24-7PressRelease/ -- Inflation is here in America, and it's just getting started, according to Peter Leeds, a widely followed investment analyst, and author of "Invest in Penny Stocks."

"You won't have heard much about it yet," says Leeds. "You may not feel it's effects at this point. Yet, inflation is now officially here, and it's just getting started."

With $14 Trillion in outstanding debt, $45,400 owed by every single citizen (including babies and 99 year olds), and a budget deficit which shows no signs of atrophy, America as a country is officially broke.

The only answer would be to run the printing press, creating new money, just like what was done to fund 75% of the last budget. The problem with putting more dollars into circulation is that it causes the value of those dollars to get watered down. By printing our way out of this fiscal hole, we may drive mild inflation into hyperinflationary levels.

Asked how bad things could get, Leeds stated that, "Massive austerity measures are coming to America, much like those we witnessed setting off protests and riots in Greece. Police, fire fighter, and teacher cutbacks, raising of the retirement age, releasing prisoners, shortening the school year, for starters."

To Leeds' point, we have already started witnessing most of these measures in various places across the United States. Cincinnati is cutting back on snow removal, trash pick-up and pothole filling. California has begun releasing prisoners, while at the same time reducing their police force. Ashtabula County in Ohio has seen it's own police force drop from 112 to 49. Michigan has converted over 50 miles of paved roads back to gravel, because it costs less to maintain. Flint, Michigan firefighters once numbered 88, but now count only 65. Shelton, Washington is just one of several locations turning off many of it's street lights.

Expect to see more, according to Leeds. This may just be the first wave of what is coming.

Asked what regular people should do to protect themselves, Leeds suggested, "Learn as much as you can, keep an eye all of these issues, and prepare. Don't buy what you don't have to, try to pay down debt, and get involved in some counter-inflationary investments like physical silver."

Leeds suggests consulting two resources for more help. The first is a free video by The Elevation Group, designed to prepare you for inflation. The second is a free report by Peter Leeds, entitled, "Inflation, Welcome to America," which spells out specific measures to come out of the economic situation with a profit.

"The problem is the combination of budgetary shortfalls mixed with inflation," said Leeds. "Like Egypt, Libya, Yemen, and most of the Middle East is going through, we've also got no money, and rising prices."

Leeds indicated that people need to be cautious when considering some common-place inflation hedges, like gold ETFs. The issue with them, says Leeds, is that they are leveraged to the hilt. They may only have one ounce of gold for every 50 ounces they sell, and they can only hope that people don't start redeeming en masse.

Peter Leeds, Inc. is an online newsletter focused on penny stocks. Located at http://pennystocks.com, subscribers from six continents and dozens of countries make it one of the most popular stock market publications on the Internet.

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