So in the Age of Obama, saving money in your bank account instead of pissing it away on Escalades, Nike Air Jordans and bling is "hoarding currency."
Now expand this same “hoarding” scenario to thousands and thousands of businesses, which have no more reason to trust this administration than individuals, and you have a cash-rich economy that is absolutely stalled. This isn’t a question of money or money supply (though Ben Bernanke hasn’t gotten that through his head yet). It’s entirely a matter of nobody trusting the idiots in charge. It’s an entire nation’s business “going Galt.”
Households have been deleveraging rapidly
TCMDO = Total Credit Market Debt Owed
And M2 velocity is rapidly decreasing
before a crisis there is nothing to “hoard”. It’s called stockpiling, building inventory, pre-planning, disaster planning, or being a good boy scout. even the bible says the wise man looks at what is going on around him, and to plan accordingly. besides govt does it all the time.
Celente thinks so:
After our close call in 2008, we have upped our savings/checking balances in a good rated bank to handle 3 months of no deposits from Iras, pensions and SS checks.
Around Memorial day I sent an email out to friends and relatives to have cash beween $500-$1000 cash on hand due to the PIGGS situation.
Some laughed, some thanked me and a few said that their financial advisors recommend much more cash on hand in 20’s not large bills. One family that laughed, 3 brothers, my age, their wives and their adult children were on a cruise to Greece and Italy during this past summer. When they got back to the states, they thanked me for the advise and followed it. What they saw in their motherlands scared the hell out of them.
In the past couple of years, we have seen several friends in their 60-70’s sell their California businesses and move out of state to retire, consult or start new businesses.
One of my longest time wise friend lives in a totally red state and city that voted aqainst Obozo and has red congressits. He has owned and run a good business since the 1960’s, if his state forces Obozo care on him and other owners, they will sell out or just close their doors. Like other guys/gals who own businesses, the Obozo lovers/supporters working for him will be the first to go.