Posted on 03/04/2008 7:54:09 AM PST by Gritty
Body need Foods water and Shelter. Oh and guns and plenty of ammo to protect them.
Might be hard to trade that gold for a sack of potatoes.
Were not there yet but it does not hurt to be prepared.
It is not so much “contained” or “contagion”, for the root issue is that every single central bank in the world issues money that is “borrowed into circulation”, that is fiat money that in the final analysis is simple government counterfeiting of private wealth.
This is exacerbated by fractional reserve banking that also creates money out of thin air in a different way, but one that has a many-fold leverage factor based on bank capital. When capital expands, lending can expand by a factor of 20x or even 30x. When capital contracts, which it did by a large factor when CDOs of sub-prime mortgages were written off in large measure, then lending must contract by a factor of 20x or even 30x.
Long ago, economist Ludwig von Mises understood that this is the cause of our "normal" boom-bust business cycle.
All the proposed “stimulus” packages are all the same: borrow money and give it away. It would be far more productive and take a lot less time to accomplish if Bush would just insist that everyone go out and get a $1000 cash advance on their Visa Card.
When someone doesn’t understand the very nature of wealth and money, they are foolish to believe that such self-stimulus can be satisfying. Government is the largest single drag on the economy. It is amazing that we can prosper with more than a third of our income being dissipated in such foolish ways.
The best way for government to “stimulate” the economy is to cut spending and cut taxes by a $150 Billion. If $150 Billion is good $900 Billion would be better. Indeed, why stop there?
I made a hunk of change from mid-70s to 80 investing in gold. For a time, this market makes me happy b’cause I’m doing the same thing now. I’ll be watching carefully for the exit, however, just as in ‘80.
Slippery Slope there.
Looks like my Y2K survival bunker will come in handy after all. The end is nigh!
This guy is a bear of epic proportions. He wrote the article posted on FR a couple weeks ago basically predicting a total meltdown in the financial system.
Unfortunately it seems the bears are consistently being proved correct of late.
As a wise person told me, though, its never as good as it seems during good times, and its never as bad as it seems during bad times. We’ll find out in the next 12 months how true that is.
buy it when it is on sale only...that's the only way to get around inflation....
I also recommend having a few gallons of gasoline around...just in case you need some but it would be out of you way to go into town at that time....this applies moslty to people that live outside of town.
I am reminded of the parable of the ant and the grasshopper. The one enjoys the summer, yet carefully provides for the winter (the ant). The grasshopper frolics and does not prepare. Not the best analogy but..... It does not hurt to be ready for any crunch. My experience of the average person is that only when things happen that are bad, do they wish different.
My own suggestion that will not be taken- of course (chuckles) is that people try to minimize any unnecessary debt. Sure a mortgage is a tough one and indeed an automobile, both mostly necessary.
Watch that credit card debt says I.
I strongly suggest that folks invest in hardware commodities.
Yep. Much easer to swap a 20 round box of 308 or 223 for a bushel of tators and kid goat.
Let's not forget Bank of America and Citibank loaning money to illegals who don't even have a social security number.
So we all pay for the Nation's big banks stupidity and greed. What's worse, is that those of us who have invested in these failing banks and hold stocks or 401 k's, end up being the victims who will end up losing our hard earned money.
sw
Sadly, it appears so.
Me too. This go-round I bought a bunch of it at $280/oz about 4 years ago. I wish I had bought a lot more.
My dad keeps trying to get me to sell some and “take some money off the table”. I told him last night “yeah, you told me that at $700/oz too”.
It has so far to fall before it wipes me out that I can afford to wait for a firm exit sign.
LQ
I bought higher, at around $483, so for my purposes when it gets down to 920 or so then I’ll probably exit.
Ammo isn't hardware -- it's a consumable!
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