By Porter Stansberry in the S&A Digest:

Readers of my newsletter, Porter Stansberry's Investment Advisory, must have been a little surprised by the dire warning I gave about the coming inflation in my last issue:

The big risk is what happens next. Having turned on the presses to save the day, who will have the political clout and the desire to shut them off? OBAMA!'s budget calls for annual deficits in excess of $1 trillion for the next eight years. Thus, by the end of this year, not only will all of the damage from the mortgage collapse ($5 trillion) be replaced by new money and credit, there will be significant inflationary pressures in the economy. Very few people understand this.

Currently, the total debt in the United States is nearly $60 trillion. That's $186,000 per person in the United States, or $750,000 per family. Looking at the numbers this way should make it obvious to anyone: These debts can never be repaid. And without heavily progressive taxes on the rich these debts could not even be financed. Last year, total debt increased by $3 trillion – roughly eight times faster than GDP. None of these figures include any of the unfunded government obligations, like Medicare or Social Security. And here's the kicker: Nearly all of these debts were created since 1990 ($45 trillion).

At the risk of sounding like a real kook, I advised my readers to make sure they own real liquidity (gold), a year's worth of prescription drugs, and at least part of a farm. (Even if you can't buy a farm directly, you can subscribe to a farming co-op and receive your share of the farm's production.)

I admit... the advice sounds bizarre. But when I look at the numbers above, I can't escape these conclusions. Sometimes you have to be willing to turn off the "that can't happen" regulator inside you and allow your brain to reach the logical conclusion, no matter how strange it sounds.

Crux note: The S&A Digest comes free with a subscription to Porter Stansberry's Investment Advisory. To learn more, click here...

More from Porter Stansberry:

Porter Stansberry: Why hedge funds will always fail

MUST READ: Porter Stansberry slams deadbeat mortgage defaulter

Stansberry: Inflation-fueled higher stock and commodity prices ahead