I try to tell my friends and family to buy silver and gold in the physical and stocks. They think that I am crazy. My Dad bought sone silver but he is just following the trend. What people don't realize is that US lifestyles are going to change. The only way out for our , excuse me, The government, ( certainly does not represent my values) is to inflate their way out of the Financial Nightmare that is our Reality. It could be a depression type scenario that has never been seen before in our history. Do people that you talk to have any idea of what is happening to our country? It is truly troubling. Please opine.
I agree with all that has been said. Except there is more to be done than simply to convert Federal Reserve Notes into specie and to stock up on food, ammo and a water purifier plus a generator.
A growing minority has taken the trouble to read and learn about the true nature of economics as well as a more rational philosophy for living on Earth. Congressman Ron Paul made many of us aware of the evils of central banking, that is the Federal Reserve's inflating of the currency. In addition we read the Constitution, in particular Article 1 Sections 8, 9 and 10. The Founders were unwilling to give up their State sovereignty altogether, having just endured the tyranny of a distant monarch. So they spelled out explicitly just which powers would be granted to the new Congress of the Federal government they were creating over them in Article 1 Section 8. In Section 9 they forbid the Congress from imposing a direct tax on the citizens. In Section 10, among other things forbidden to the States was to hold anything other than gold or silver coin as legal tender.
Ron Paul founded the Campaign For Liberty in 2008 and I joined when there were just 6000 members. Now there are over half a million and growing. We realize how the Constitutional limits on the Federal govt have been ignored, just as most politicians ignore their oath of office to uphold the Constitution. You will find no authorization in the Constitution for so much of what the Feds do.
The Young Americans for Liberty is endorsed by Ron Paul and exists now on over 500 campuses.
Students For Liberty also is fighting to enlighten classmates and the populace.
Judge Andrew P. Napolitano hosts the nightly Freedom Watch on Fox network. He has written several books which provide insight into Constitutional issues, e.g. the so called Commerce clause was intended simply to make sure that trade between the states was not hampered by protective tariffs, not to justify the wholesale government regulation of business and industry.
The so called necessary and proper clause meant that laws by the Congress were to be limited to those powers stated in Article 1 Section 8 alone, the forementioned powers, not any powers or laws which could garner enough votes!
See next post
Atlas Shrugged, the novel by Ayn Rand, is being made into a movie in three parts. The first of the trilogy has been created and will be in select theaters across the country on April 15th. That date was chosen for obvious reason. I personally favor April 19, the date the shot heard around the world was fired at Lexington, MA.
www.atlasshruggedpart1.com to find the nearest theater and to watch a trailer or scenes from the movie. The book is worth reading as well as her essays and The Objectivist Newsletter 1962-65.
G.Edward Griffin wrote The Creature From Jekyll Island about the secret meeting at J.P. Morgan's lodge in 1910 where the Federal Reserve Act of 1913 was written creating the Federal Reserve System which has caused the dollar to lose over 95% of its purchasing power over the ensuing years.
The Roosevelt Myth by John Flynn shows how ignorant FDR was about economics and how he confiscated the gold held by loyal American citizens enriching the State at their expense.
Henry Hazlitt wrote Economics In One Lesson is a lucid explanation of fundamental economic principles.
Murray Rothbard's The Great Depression sheds light on that event and how the Federal Reserve policies caused the boom and malinvestments leading to the crash and how govt interventions and deficit spending perpetuated the depression and did not create jobs or alleviate the unemployment but caused deeper indebtedness. Rothbard's Man Economy and State is his major work.
Ludwig von Mises of the Austrian school of economics has written many books clarifying basic economic principles. Planning for Freedom is accessible and Human Action is his magnum opus. All of his works as well as some of Rothbard's and others can be read free online at the Ludwig von Mises Institute site: www.mises.org
http://lfb.org is the Laissez Faire Books website
www.chrismartenson.com where you ought to watch the Crash Course for free. Includes a chapter on "what should I do"
Enjoy and join us!
When manufacturers' costs rise (as we're already seeing in a host of indicators), inflation of consumer prices can't be far behind. And how can prices not rise when the US imports more than it exports while Washington pushes the dollar lower against foreign currencies?
Inflation and devaluation must eventually drive interest rates higher -- all bad news for the American consumer. But if Bernanke's policy is widely seen as debt monetization and currency printing, the real danger is a US insolvency crisis that could destroy the dollar and bring global financial chaos.
Here's how it could unfold.
The Treasury now pays a blended cost of about 2.45 percent a year for some $9.14 trillion in publicly held US debt, the lowest rate in more than half a century. But inflation and devaluation will inevitably lead investors to demand a higher return.
The burden is manageable if the rate drifts back up to, say, 5 percent (double the current cost and close to the historic average). But a crisis in confidence would cause an immediate spike up in bond yields and interest rates.
We're edging closer to the two conditions that could precipitate that crisis. One trigger would be the Fed balance sheet having grown too large for orderly liquidation except at fire-sale prices; the other would be disorderly ("failed") US Treasury auctions, wherein bidders step away because they see the risks as outweighing the return.
Such a crisis would mean the cost of servicing federal debt would skyrocket -- triggering a downward-spiraling liquidity crisis ending with the US government unable to finance its obligations.
And while Germany and the European Union were able to rescue Greece and Ireland (so far), there's no one to bail out the United States.
I think your forgetting one key item: the federal reserve is prepared to buy ALL of the treasuries required to cover the budget deficits plus maturity rollovers.
With that one stroke they can entirely remove the problem of rising rates in the bond market because, as the only real buyer they will SET the rates. And since we "print" our own currency by definition america can never become insolvent (though in the final days of a hyperinflation effective insolvency will come about).
In normal times (pre-1990's) the things your talking about would be serious problems. However we have crossed over into the Twilight Zone now, and the normal rules don't apply.
My 2 cents:
This mess was bound to happen. Our days were numbered once we went off the silver and gold standard. That opened the floodgates to big government spending with no controls. Once politicians learned they could buy votes from special interest groups by transferring tax money from one group to another, our fate was sealed.
Until we get back to the original form of Constitutional Government, which is a "Representative Republic" that does not favor one citizen over another and we get away from this idea that we live in a Democracy, we have little hope.
A democracy is nothing more then a group of 1500 government wolves (Call them workers) and 1499 chickens (call them taxpayers) voting on whats for diner tonight. In this case Democracy works great for the wolves.
We now see Government union workers in the streets protesting any and all attempts to cut the flow of taxpayer money to them. These protester events are coming to a town near you soon.
Buy silver and gold and hold tight as your insurance policy against stupid politicians who want to take your tax dollars and borrow a bunch more dollars and give them to someone down the street.
I totally agree with what most have said here. I've been telling family/friends to buy gold since 2007. No one listened! I'm still telling them today and it's still falling on deaf ears. Reality is a hard pillow to swallow.
Had to chime in. Good thread.
My op has always been it will be in the middle, in between the gloom/doom and paradise.
But I will add, 1/2 way between will be a tough hit for many, or most.
If your home declines in value by an additional 30%, sure not doom and gloom, unless it already declined 30% and you were looking to sell to retire.
Or, folks who are already retired living off Social Security.
We know how hard inflation is hitting. Yet, the CPI shows a more flatline and therefore, SS recipients do not get any increase in benefits, thereby falling way behind. Coffee doubles, cotton doubles, food doubles, fuel for auto and home doubles.....
The Social Security receipients are the true bagholders.
Meanwhile, buy PMs.
Nothin has changed.