First things first. Is there an end to the run-up of the price of metals? I am not sure, but as long as every single person in business complains about prices of their merchandise going up, and that they are having a hard time making a profit, and as long as oil is doing what it is, I say not in the near future. As long as the dollar falls out of bed like it is doing now, making imports ever more expensive, and causing more and more people to sell their stocks and buy gold and silver to hedge themselves, I say no. Smart people I know, say the DOW could go to 8,000 or lower. As long as the trade deficit is in the hundreds of billions, and the dollar presses run 24/7, I say no. Occasional corrections like last Wednesday? Sure, but steep drops of tangible gold and silver? Don’t hold your breath or make a bet on it. Chance of any tangible going down in dollars? Not likely, other than real estate which continues to do so.
What is happening in Zimbabwe, is happening to America and the rest of the world, but faster in America. When Zimbabwe was Rhodesia, the business and farming were in white hands, the economy was excellent, and food was exported. When the blacks took over, the decay began, and now, one American dollar, as bad as it is, is equal to 25 million Zimbabwe dollars. Now, what used to be prosperous Rhodesia, is failed Zimbabwe. Utter failure, with violence everywhere. As a matter of fact, Sub-Saharan, black, Africa is failing pretty quickly. Johannesburg used to be a wonderful place, but now is mostly black and crime ridden beyond belief. White, productive farmers, have been murdered and their property confiscated after their womenfolk were often raped. Many white farmers have simply abandoned their farms to save their lives. The electricity comes and goes, and typically, the entire continent will rot and decay with fratricidal warfare, cannibalism, murder, rape, and pillage, till it will return to its former ’glory’ of being the almost pre-historic, ’Dark Continent.’
All the while, humanist, generous, foolish, America and other ’enlightened’ nations, continue to pour their monies into black Africa, in hopes of civilizing them and stopping the animalistic conduct. The monies always go to the pompous leaders and dictators who live very high, and I hear probably store their dough in Switzerland, while the peons starve and are slaughtered. What a waste! In America, the $3 trillion budget that is soon to be signed, will consist mainly of the military, welfare, subsidies of all sorts, and worthless, meddling bureaucracies of all sizes, who hamper freedom and prosperity. In a way, it is like black Africa’s dictators. We are snooped upon, wire tapped, taxed to death, and have been forced into two useless, expensive wars, which we won’t cease and desist. If getting out of Iraq and Afghanistan were on the November ballot, the voters would say a huge YES. Instead, we will have no choice but a socialistic Democrat or a ’let’s keep on fighting’ Republican.
The peons in Africa are powerless against the rulers who control the soldiers and armed might, and equally so in North Korea. All the while, the buck slides into the abyss. Remember, when the euro came on, it was 28 cents, and now over 5 times that much! The dollar cannot be fixed, any more than stupid Africa can be fixed, or stupid (evil?) Washington DC can be fixed. We the people, are powerless to stop the decay of our money, and prices rising. The tax collections will undoubtedly be way short of what is expected, due to bankruptcies, poverty, unemployment, and indebtedness, which will make it necessary to print even more dollars. The utter inefficiency and waste of the D.C. Gang, defies description. Who can we vote for who will fix it? Ron Paul? We all sent him money and displayed his signs, and he got 4% of the vote.
The public schools, media, TV, and even colleges, have blinded the citizenry into glazed eyes, and numbed brains. Far too many professors are carry-overs from the 60’s radical left wing “Berkeley” crowd, and are poisoning the minds of their students with socialism claptrap. They know nothing about economics, and the so obvious fact that inflation is caused by an increase in the currency supply, even though it is in the dictionary. I watch CNBC, and see the ’stars’ blather on and on about what to do, what causes prices to rise, how to secure one’s future, and what to invest in, but never a word about getting out of the very thing they speak of, and that is DOLLARS. Dollars are a measuring device which is failing. This morning, (Friday) as I am finishing this, the news has broken that even ’officially’ there was a loss of over 100,000 jobs, just in February, counting all three sections of counted employment. How many more jobs have been lost which were never entered into the ’official’ count? Hard to know. The dollar sinks further, there are more foreclosures than sales of real estate in California, and even Helicopter Ben admitted that most Americans owe more on their homes than they are worth.
Naturally, the interest rate will be lowered again, but Japan lowered theirs to zero for years, and it didn’t bring their economy back. Smart investors were borrowing yen at zero interest, and investing it other places at interest and were cleaning up. I wonder then the dollar carry trade will bloom? I honestly wish I could just see some glimmer of hope for the US economy, the stock market, the dollar, or even winning the wars in Iraq and Afghanistan, neither of which can I find a single reason for us fighting, being there, and enraging the entire world. Don’t forget, beginning Sunday, we’ll have an extra hour of daylight to mull over our plans for the future and think about what to do with surplus assets we might have.
If the good Lord will excuse me, I’ll change the words of Joshua 24:15 a bit, and it will read like this. ’Now if it is bad in your eyes to invest in dollars, choose for yourselves today, where you will invest, be it in the dollars your forefathers invested in during times past, or the gods of the stock market, which lives in New York, but as for me and my household, we shall invest in gold and silver.’ Protect yourself and have a great weekend.