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If You Haven’t Bought Any Gold Yet… It's Time to Act.
Zero Hedge ^ | 07/21/2011 | Simon Black

Posted on 07/21/2011 12:35:54 PM PDT by SeekAndFind

Print. Lie. Borrow. Deceive. Deny. These are a the principal tenants of the Greek restructuring plan that were released today from Brussels… it’s as if EU policymakers put it together after shaking a Magic 8-ball.

The whole world knows that Greece is bankrupt and has been living bailout to bailout for over a year. Deep in debt and devoid of cash, the country has completely forsaken its sovereignty in exchange for becoming a ward of the European Union; Prime Minister George Papandreou is now a hapless stooge awaiting instructions from Germany.

It’s ironic that the Greek proposal released today calls for a ‘Marshall Plan’ of investment across Europe… given that the last time Greece was being controlled by Germany was during the country’s occupation by Nazi forces after being vanquished by Hitler’s 12th Army in April 1941.

And so, with limited debate and even less fanfare, Europe has just officially signed on to destroy its own currency. Utterly worthless, quasi-defaulted Greek debt will become perfectly acceptable collateral, much in the same way that the US Federal Reserve took every scrap of toxic paper it could find off banks in 2008 and 2009.

Given the favorable market reaction, European politicians must be feeling pretty proud of themselves. The euro is up. The stock market is up. Oil is up. Well, never mind about oil, they’ll blame that on evil speculators… just like food prices.

And the proposal is so deliberately vague, they can go back home and tell constituents whatever they want. Angela Merkel can tell German voters that the French are paying for it, and Sarkozy and tell French voters that the Germans are paying for it. Win, win!

The European sovereign default SOP has just been set. When Spain, Italy, Portugal, and Ireland’s time of insolvency arrives, it will be handled just like this: Print. Lie. Borrow. Deceive. Deny.

Every day it becomes more and more obvious that the financial system as we know it is breaking down. The United States and European monetary union, whose currencies comprise nearly the entirety of the world’s fiat reserves, have both signed up to debase their currencies as rapidly as possible.

This is going to kick inflation up another notch as anyone holding on to Greek debt is going to trade out of it as quickly as possible. All that money has to go somewhere… and it’s a sure bet that a lot of it will feed rising commodities price (which translates into more inflation).

If you haven’t found a safe haven for your savings yet, it’s time to start. Now. No more excuses. A few you could consider:

Swiss franc, Norwegian krone, Singapore dollar, Chilean peso: These four currencies are generally regarded as safer, stronger, and managed by less obtuse central banks. In a world of fiat, these are among the least worst of the bunch.

Unidad de Fomento (UF): This is a special unit of account used in Chile that was set up during the hyperinflation days of the 1960s. The UF is designed to keep pace with inflation and it’s possible to establish a bank account denominated in UF in Chile. I’ll be telling SMC members how to do that in an upcoming issue.

Agricultural Property: Nothing hedges your risk against rising food prices like being able to produce your own food. This idea underpins the concept for the resilient community we’re planning in South America.

Precious Metals: Portable, divisible, durable, and scarce, precious metals are the classic hedge against rising prices. Gold and silver aren’t going to go up in a straight line, and gold in particular is due for a correction, but in a world ruled by an economic magic 8-ball, it’s a much safer store of value than a government IOU.

High quality equities: If my only two options are Apple stock and a bank account earning 0% interest, I’m going with Steve Jobs. The chief problem with equities is that the more money that central banks print, the more money flows into equities… pushing valuations up to dizzying (and unsustainable) levels.

Firearms and ammunition: Weapons and ammo serve a dual purpose of providing better home security, as well as a reasonable store of value. Unfortunately, they can also serve a third purpose– putting you on some government agency’s radar.

This list is by no means exhaustive… but if you have the majority of your savings just sitting there wasting away, it’s time to act.


TOPICS: Business/Economy; Society
KEYWORDS: gold; inflation; silver

1 posted on 07/21/2011 12:35:58 PM PDT by SeekAndFind
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To: SeekAndFind

BTTT


2 posted on 07/21/2011 12:40:48 PM PDT by Jet Jaguar
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To: SeekAndFind

Yeah, let me just crap $1600 for an ounce. I have that lying around the house. s/


3 posted on 07/21/2011 12:40:48 PM PDT by manic4organic (We won. Get over it.)
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To: SeekAndFind

So we should throw our savings into a precious medal that due for a correction? Forgive me if I don’t do that...or dump it into Chilean pesos, lol.


4 posted on 07/21/2011 12:43:11 PM PDT by americanophile ("this absurd theology of an immoral Bedouin, is a rotting corpse which poisons our lives" - Ataturk)
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To: All

“This idea underpins the concept for the resilient community we’re planning in South America.”

####

Galt’s Gulch?

Who is this “we”?


5 posted on 07/21/2011 12:45:28 PM PDT by EyeGuy (2012: When the Levee Breaks)
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To: americanophile

No, you should have been forward thinking and bought some physical gold and silver in the past few years. Then you could feel fairly happy with the appreciation of that portion of your assets. YMMV.


6 posted on 07/21/2011 12:47:19 PM PDT by ammomajor (If 'helicopter Ben' says gold isn't money, I want more of it.)
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To: manic4organic; americanophile
I'm with both of you. I have neither the funds available to convert nor the confidence in any of them to just jump into the deep end of the pool.

The proverbial rock and a hard place is coming. Just looking for a way to move sideways.

7 posted on 07/21/2011 12:49:30 PM PDT by Bloody Sam Roberts (If you think it's time to bury your weapons.....it's time to dig them up.)
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To: manic4organic

Maybe some silver then?

Price discovery in the Precious Metals is going to become keener once the HKMEX starts selling silver (i.e. tomorrow). The COMEX’s paper version of silver isn’t going to cut it for much longer. Seems like a good time to buy.


8 posted on 07/21/2011 12:49:37 PM PDT by agere_contra ("Debt is the foundation of destruction" : Sarah Palin.)
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To: SeekAndFind
It's Time to Act ...because someone is selling and wants to keep the price up? Disclaimer: I am not buying because I think it is being oversold, and a middle class at best income, I spent $2g on a car, and between savings, checking, and wallet, may have enough to buy one ounce of gold at <= $1600
9 posted on 07/21/2011 12:50:39 PM PDT by Son House (The Economic Boom Heard Around The World => TEA Party 2012)
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To: ammomajor

I just think it’s all hype. If there’s a true global financial crash, the gold won’t do you much good either...you can’t eat it.


10 posted on 07/21/2011 12:51:19 PM PDT by americanophile ("this absurd theology of an immoral Bedouin, is a rotting corpse which poisons our lives" - Ataturk)
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To: SeekAndFind

Prospect for it. :-)

http://www.goldfeverprospecting.com/cogolo.html


11 posted on 07/21/2011 12:54:30 PM PDT by Red Steel
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To: americanophile

Heard that was demonstrated in late-WWII Japan: knowing the mainland would get hammered, people bought up gold. When it did, there was nothing (to wit bread) to buy with it.


12 posted on 07/21/2011 12:54:54 PM PDT by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com/)
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To: americanophile

No matter what the dollar drops to, Gold and Silver will still be the only real money. Isn’t is strange that Greece the First Republic, and the first country with a monetary system backed with Silver and Gold, 2,000 years ago. Today is the country taking all of Europe and the U.S. down with their 0 based fiat money


13 posted on 07/21/2011 12:55:03 PM PDT by BooBoo1000 (The Mills of the Gods grind slow, but exceedingly fine.)
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To: americanophile

And isn’t it possible that should we have a financial meltdown, the feds just would confiscate gold like they did under FDR?


14 posted on 07/21/2011 12:55:27 PM PDT by NotTallTex
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To: americanophile

So we should throw our savings into a precious medal that due for a correction?

The day I buy gold with my savings, everyone should sell theirs because gold will take a dive the next day;) I guess I was meant to be one of those in the long food lines or foraging yucca roots and wild grasses.


15 posted on 07/21/2011 12:56:09 PM PDT by Bitsy (!)
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To: NotTallTex

BINGO!!!!


16 posted on 07/21/2011 12:57:45 PM PDT by ontap
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To: SeekAndFind

The Fed will take it all away if the dollar collapses and it will be illegal to use it for commerce... and those rats will do it... you just know that they will... they did it before and they would do it again in a heartbeat.

LLS


17 posted on 07/21/2011 1:00:28 PM PDT by LibLieSlayer ("GIVE ME LIBERTY OR GIVE ME DEATH"! I choose LIBERTY and PALIN!)
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To: NotTallTex

More than possible, likely - even though such an act would cause the 70% of USD holders who are foreigners to immediately dump the dollar. It’s still likely because Democrats are not like normal folks.

FDR’s reign of terror managed to snag Gold left in safety deposit boxes (and also freely-surrendered Gold). The thing to do is make sure that your precious metals are not stored anywhere the Government can easily control/gain access to them.


18 posted on 07/21/2011 1:02:52 PM PDT by agere_contra ("Debt is the foundation of destruction" : Sarah Palin.)
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To: BooBoo1000

“Today is the country taking all of Europe and the U.S. down with their 0 based fiat money.”

####

Greece may be the problem today, but they are just the trivial opening act for the big show, which is the long overdue comeuppance of the American economy.


19 posted on 07/21/2011 1:03:27 PM PDT by EyeGuy (2012: When the Levee Breaks)
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To: americanophile

considering you can’t spell “metal”, I will take your recommendation with a grain of salt. =)


20 posted on 07/21/2011 1:15:18 PM PDT by rokkitapps ( Hearings on healthcare waivers NOW! (If you agree make this your tagline))
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To: rokkitapps

The spelling police are out in full force!


21 posted on 07/21/2011 1:23:12 PM PDT by FightThePower! (Fight the powers that be!)
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To: rokkitapps
To be fair, the original article sets the bar for spelling when it speaks about "principal tenants of the Greek restructuring plan"
22 posted on 07/21/2011 1:24:39 PM PDT by agere_contra ("Debt is the foundation of destruction" : Sarah Palin.)
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To: agere_contra

Seems to me like a good time to SELL gold, not buy it.


23 posted on 07/21/2011 2:05:21 PM PDT by bicyclerepair (WHITEY)
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To: Son House

This article is way too mild. Something this way is coming and it ain’t gonna be good.

If you don’t buy precious metals at least get a good store of food and hygiene items to last for at least several months. When the banks fail there will be a lot of other things fail. If you aren’t working because your employer went out of business do you think you will be able to live on food stamps? Ha! Everybody thinks that the government will protect them, it can’t!

Everybody thinks that because we have never had a catastrophic failure of the economy that it won’t happen. We did have a failure during the depression but this will be much worse. Back then we had a gold standard, people at least had something. Now days people only have debt.

Now in this country and much of the world 1/3 of our population lives on Social Security. When the inflation hits they will have a VERY hard time. People will be moving in together as large families try to get by on one household and very little money. Actually a lot of money but it will be worthless.

Do what the man says, get some gold, silver, guns, ammo, food and water. Get your house paid up or have enough cash to pay your rent or house payments for a long time. Quit worrying about how big your flat-screen is or how new your car is and get some security, do it now.

I hope the good Lord will help us. We don’t deserve it but I hope He will.


24 posted on 07/21/2011 2:12:38 PM PDT by JAKraig (Surely my religion is at least as good as yours)
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To: JAKraig

Food, storable food. Rice, and beans and lots of it. It is very cheap and carries the combination of carbs and protein to keep you healthy. A water filter, and stored water too. Buy plastic garbage cans, fill them with water somewhere on your property. Three or four of them, full of water will get a family of four through a month of troubles. The price is practically nothing, compared to bottles of water. I have my hot tub full of water, with no chemicals. Three hundred and fifty gallons to get us through a few months. Cord wood is drying, I bought a chain saw, and enough fuel for a year for it. I have three 100 foot trees laying down waiting to cut up too. Buy bar soap, light bulbs, raise some chickens. My garden is a disaster production wise, but I am learning. I have plans on buying a beef, along with a “craigslist” freezer to store it in. The worst that can happen is I lose $600, the best is, I can trade meat for other needed items. WHEN the SHTF, I hope and pray we all remain civilized. Just in case, I have plenty of ammo. That too is going to be a great trading item.


25 posted on 07/21/2011 2:31:53 PM PDT by runninglips (Republicans = 99 lb weaklings of politics.)
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To: SeekAndFind

All’s I know is this. My parents grew up in Italy during the war. It was the toughest times they ever lived through.

They always told me that the people who had it best back then were the farmers, because they had everything they needed right there. And my grandparents survived because they were handy and could do masonry or machinery work for the farmers in trade for food.

If I have to hedge my bets, that’s what I’m going with. Grow food. And make yourself useful.


26 posted on 07/21/2011 2:34:23 PM PDT by Claud
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To: SeekAndFind

How much rent do those tenants pay?


27 posted on 07/22/2011 4:06:23 AM PDT by Jack Hammer
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