That’s a lot of dollars, isn’t it? It has been announced by the treasury, that anywhere from $600 billion to a trillion buckeroos will be placed in circulation fairly soon. It’s the old lemonade stand again, or as they call it, ’quantitative easing.’ It was tried a couple of years ago by the Democrats, and the result was an increase in the unemployment rate, from 4% to 9.6%, and a debasing of the dollar. What will happen this time? Probably the dollar will loose another 20% of its purchasing power, or in other words, the dollar will buy 20% less stuff. Put it a far more realistically way, probably the prices of EVERYTHING will go up 20%.
Will the price of doughnuts, gasoline, lumber, lettuce, and fabric go up 20%? Surely, and grains have already gone up far more than that already. Same grain, lettuce, doughnuts, gasoline, lumber, and fabric, but it will take 20% more dollars to buy them. Happened before, of course. Reckless governments always spend more than they take in, and that generally means all governments. When that happens, the printing presses roll to pay the bills, thereby taxing the citizens unmercifully. As the presses continue to roll, the currencies become worth less and less, till those two words are melded into one word, which is ’worthless.’ Wages never go up at the same rate as inflation, so the citizens are lost.
Zimbabwe, Germany after WW I, and Argentina are classics. Those who saved in those currencies, lost everything they had, other than their tangible goods, such as automobiles, food, housing, clothes, or gold and silver. Note those two last words in the previous sentence. Most people are so totally engrossed by the B.S. that comes on TV, that they aren’t readers or even thinkers, so this whole thing will come on like a sudden thunderstorm, and leave them broke, other than gobs of paper money, which will buy continually less and less.
If I had bought a $5,000 whole life insurance policy 50 years ago, I would have thought it would keep me very well at retirement. Today? What will $5,000 will buy you? Not much. Just a few decades ago, Argentina, a marvelous nation, with one of the most beautiful cities in the world, had the same thing happen to them, that is happening to America today. Politicians spent, and spent, and spent. They gave handouts to everyone, and it all ended with the currency becoming worthless. It happened to Germany again, after WW II.
If those victims had gotten OUT of those currencies, and into anything tangible, their wealth would have been saved. If smart people in Argentina, had bought tires, lumber, gasoline, or any tangible, they would have sold them for ever increasing prices as the currency dove to the bottom. If they had bought gold or silver, the same thing would have happened. In inflation, tangible things go up in currencies, as the currencies go down. Elementary, my dear Watson. Now, I ask you, which is the easiest to store, buy or sell? Which is, throughout history, been actual, honorable, commonly used, beautiful, money? It is gold and silver!
So, all you morons out there; you keep those CD’s with a 2% interest, and see how good they are with a 20% inflation. Don’t cash them in a few months early and buy gold and silver, because you will pay a penalty. How dumb! Stay with those dollars, and watch your wealth dribble away like a leaky boat sinks. Your problem, not ours. Am I being rude? probably. Just logical. Ask me ’what percentage of my surplus assets should I put into metals or tangibles?’ Ten percent, and then watch 90% of your wealth sink to who knows where? Or maybe 100%, so you can preserve your wealth?
P.S. Harry Reid won by 40,000 votes, and the voting machines are maintained by the SEIU union which backs the Democrats. Did Harry Reid really win, or were 40,000 votes stolen by rigged voting machines, which in a lot of cases, automatically registered Harry Reid when turned on? In Colorado, the Republican Senate candidate lost by 15,000 votes. Shouldn’t that call for a re-count? In Alaska, there are still tens of thousands of votes to be counted. Has the fat lady really sung yet?