It has always amazed me how tax cuts don't work until they take effect. Mr. Obama's experience with deferred tax rate increases will be the reverse. The economy will collapse in 2011.
Consider corporate profits as a share of GDP. Today, corporate profits as a share of GDP are way too high given the state of the U.S. economy. These high profits reflect the shift in income into 2010 from 2011. These profits will tumble in 2011, preceded most likely by the stock market.
"There is but one correct answer...and it is best delivered with a Winchester rifle."
The government is doing everything it possibly can to destroy the economy, it could hardly be done better with the most malicious intent. The combination of increasing financial obligations, higher taxes, more regulation, and more money printing is one that we can't survive.
The only reason we haven't been crushed by inflation is because the economy has been so bad lately. Many people have less money, and those that do are holding on to it rather than spending, most importantly the banks. Once the newly printed money is put into circulation prices will skyrocket, this is obvious given that the amount of goods and services will not increase at the same rate that the supply of money increases. More money chasing fewer (relatively) goods - prices go up. This is great if you are one of the first to get hold of the new money, and terrible if you are one of the last (most of us).
The best way to protect yourself in such conditions is to store your wealth (not your money) in forms that will hold its value (i.e. things that will inflate in price along with the money supply). Metals, energy, real estate, and a host of other goods are decent choices. Unfortunately, just storing your money in cash holdings is one of the worst things you can do.
