I was having lunch with Bonnie, my wife, Saturday, in a local Thai restaurant, and a man and his wife took a table near us. They looked prosperous, but ’liberal.’ Know what I mean? I really believe that liberals have a certain look, which I can’t describe, but it is there. Then, we began talking about the two well off, well dressed, liberals at that table, and the result goes like this:
Obviously, liberals have great faith in the economy, and I am sure the faith is pretty close to 100%. I’ll bet that couple have a couple hundred grand in some bank. In other words, they have their surplus assets all tied up in dollars and dollar denominated assets, such as stocks, bonds, CD’s, annuities, and savings accounts. Lots of conservatives do also, so this prediction applies to all who have surplus assets in dollar denominated things. They feel very secure in their dollars. Dollars are a habit, like nicotine. Nicotine is the most addictive drug known to man, but maybe dollar addiction is a close second. Here’s what I think will happen as the depression gets worse and worse:
Already, there are hundreds of thousands of closed businesses. There are many shopping centers, Home Depots, and others that are closed and the weeds are growing. On Main St. in my town, there are lots of closed, empty stores, and the situation is the same or worse everywhere. In my town, there is a Russell Stover candy factory, which used to run three shifts. Now there is one shift, and hundreds have been laid off. For all the closed stores, factories, and businesses, there are millions of laid off former employees. The year’s worth of unemployment welfare won’t last forever. At the same time as this is going on, the Obama administration and its Democrat majority, are printing money as fast as the presses can run. This will result in hyper-inflation, unless all the laws of economics can be defeated.
As hyper-inflation rears its ugly head, those who have their assets in dollars, will begin to notice prices going up. As the inflation continues and increases, prices will go up faster. Those with dollars, will become alarmed. Really alarmed. “Look Mabel, we’ve got a hundred thousand dollars in our savings account, but it only gives us 1% interest, and we’re 70 years old and in good health. We might live to be 90, and at the rate prices are going up, we might run out of money long before we die, and then what will we do? We’d better stop eating out, stop taking vacations, and really economize. We’d better not buy that new car, live on our Social Security, and take care of our money so it will last.” I predict that everyone who has surplus assets in dollars, will begin to think the same. Even that obviously well off liberal couple in the next table.
What does this mean? It means that as this second ’great depression’ continues, unlike the first ’great depression,’ when there was no inflation, this one will foster hyper-inflation. The hyper-inflation we will have, will make this second ’great depression,’ not like the first, when there was no inflation. In the first ’great depression,’ people were not worried about their money losing value, because it wasn’t. The dollar was firmly backed by gold, and there was no inflation and fears of savings losing value. This second ’great depression,’ has already imitated the first one with massive layoffs. and unemployment, which continue. This second ’great depression,’ will couple the unemployment, with the well off populace realizing that they are no longer well off, because their saved dollars are losing value and purchasing power, rather than remaining static, as dollars were in the 1930’s.
This will, in my opinion anyway, cause even more layoffs and bankruptcies, such as maybe the restaurant where we were having lunch last Saturday. As dollar holders pull in, economize, and wonder what hit them, they will suddenly realize that their stash of cash is not going to last them till they die, and they will panic. Panic will bring even more restaurant, car dealership, Loews, and jewelry store closings, and more unemployment and hardships for everyone. With hyper-inflation just around the corner, it will bring a more severe depression than the first ’great depression.’ It has to, as far as I can theorize. My local jeweler, with whom we are great friends, says his business is off 30%. He’s debt free, but the empty stores on Main St. probably weren’t debt free, and have folded. The chain reaction continues.
People’s savings obviously will buy less and less, and with interest at one percent, or even two percent, the interest will never equal the rate at which the value of their dollars will go down. Not only that, but since the D.C. Gang fakes the true cost of living, the oldsters’ Social Security won’t begin to go up nearly as fast as prices will be going up, which is already happening.
Those wise people who got out of dollars, and put their surplus assets in tangibles, will see the tangibles go up in price, equal to the dollar’s downslide. As prices go up, the panic will set in with the dollar savers, and they will severely cut back on their spending, making the second ’great depression,’ even worse than the first. Those who had gotten out of dollar denominated things and stocks, and into beautiful, solid, historic, true money, in the form of gold and silver, will be awfully glad. If they need a few bucks as prices go up, they can sell a few coins, get the dollars, and pay their bills. Those who are in dollars, will gnash their teeth, and never know what to do, or what they could have done to secure their wealth. As prices go up, the things you buy with dollars remain the same, be it Big Macs, needles and thread, restaurant meals, or gold and silver. The tangibles are exactly the same tangibles. Only their cost in depreciating dollars goes up, which is why surplus dollars must be gotten into tangibles, rather than saved in dollars.
Just finished Glenn Beck’s “Common Sense.” Lots of good stuff in it, but as it ends, a “Call to action,” which Glenn calls for, doesn’t quite tell me how to save America. Do we reform the Republicans? Work for Sara’s candidacy? The book has no answer, because as I see it, there are none. 95% of Americans are died in the wool sports fans, commercial loaded TV watchers, functional illiterates, and mouth breathers. They have no idea of what’s happening to them and America. None at all, and if a really great candidate came on the scene, who was young, and a great speaker with brains, such as Sara Palin, would they vote for her? Another book I just finished is titled, “A Great Slobbering Love Affair,” and in lurid details it shows how the media are in the pockets of, and paid off by liberals and Democrats. They crucified Sara, because she scared them silly. If she were the nominee, it isn’t difficult to imagine another Barry Goldwater type of crucifixion of her by the Media. In short, I guess let’s do our best with tea parties, and letter writing, but the main thing is to protect yourself, and I really don’t think major cities are going to be places of safety in the future.