When you “short” a stock, you basically are betting that it will go down in price, and you will make a profit when it goes down. To ’short’ something, you borrow it, and agree to repay it at the price at which you borrowed, and theoretically you sell it at a lower price, pay it back, and pocket the difference, which is your profit. When you go “long” on a stock, you bet it will go up by buying it. As the title of this says, it is possible to ’short’ the dollar, betting it will go down, and profiting from its decline. Is there anyone out there who is willing to bet the dollar will gain strength, and that it will buy more and more over the years? Or is it common sense and knowledge, that since the presses are running night and day, and the Republicrats (not Tea Party) are spending and have spent us into bankruptcy, that the dollar will continue to lose value?
To make a profit on the obvious dollar’s decline, it is wise to ’short it,’ isn’t it? Isn’t it a virtual 100% sure bet, that the buck will continue to lose value? Could it do anything else? OK then, let’s ’short’ the dollar, and make a profit. How to do it? Simple! Take your dollars, and buy something tangible, which will go ’up’ in dollar prices, as the dollar goes ’down’ in value. What to buy to get out of dollars? It should be something that requires no maintenance, insurance, watering, oiling, refrigerating, painting, batteries, insulation, fuel, appraising, or other. As an example, in the last year, I bought a new washer, dryer, dishwasher, and refrigerator. The old ones worked perfectly, so why did I buy new ones? Because I knew, that the prices of new ones would go up, up, up, as the dollar slid down in value and purchasing power. I donated the old to Hospice and took a tax deduction, plus the new ones use a lot less electricity, have more features, and will probably last longer. Within the last two years, I replaced my 92.5% efficient Lennox hot air furnace, with a 94.1% efficient Lennox. Why? because the 92.5% efficient one was 18 years old, and still worked perfectly, but as with the appliances, how much longer would it last, and how much more would a new one cost a year or two from then? I was totally correct on all counts.
I bought a 1988 Mercedes 560SEL, which some say were the best Mercedes ever built, which had 62,000 original miles on it, for $8100, plus $1495 to ship it from Boston to me. It is absolutely flawless. I have the original title, showing that it was bought by Barbara Firestone (yes, the same family) in 1988 for $55,000. In 1988, that car was the best car in the world, and probably still is. Could I get more for it now? Yes, because there are few around, and probably none like this one with its history. My other 560 SEL, a 1989, has over 180,000 miles on it and it still runs perfectly and uses no oil. The 1988 is covered and used as a ’spare,’ and used a couple of times a year to keep it limber. I made a wise decision with car, appliances, and furnace. I ’shorted the dollar’ with the purchases.
By far the easiest way to ’short’ the dollar, that is betting it will go down in purchasing power, with the resultant rise in prices, is to buy beautiful hedges against it, and that is with gold and silver. Another sales pitch? I suppose so, but unless you think the buck will go up in value and purchasing power, you’re nuts to save in dollars. Might as well store your water in a leaky bucket. At random, I just went through thousands of 4X6 index cards of customers I haven’t heard from in over three years. After three years, I transfer cards to a separate file. Nothing’s on a computer. Why haven’t they bought from me in three years or more? I have no idea, but I never call people. Here’s Ross D…… who I last heard from in 2007. He bought from me in 2002, and stopped in 2007. In 2002, he bought 40 Gold Eagles for $314.30 each. He then switched to Krugerrands, and over the next five years, bought 450 Krugerrands at prices beginning at $334.40, and ending in 2007 at $681.90. Today, the Krugerrand is $1600.68, and the Gold Eagle is $1612.31. Here’s Doug G, who bought from me only once, in 2005. He bought 5 – 1 0z palladium bars @ $209. Today, they’re $784.50. Here’s William H. who also only bought from me once. In 2004, he bought 10 – 100 oz silver bars @ $709, and today they’re $3583. They shorted the dollar. Why haven’t they bought from me since? Maybe they’re broke, or waiting for prices to go down, which is a common mistake, or maybe they’ve bought from David, Melissa, or Morgen. We never call people. If they want more, they can call us, which is as it should be.
If you want to be driven crazy, call one of the TV advertisers of gold and silver. Once they get your number, they’ll drive you nuts with their calling, and trying to sell you odd ball stuff of fractional ounce or ’rare’ coins.’ They’re all used car salesmen. Want to ’short the buck,’ and preserve your wealth? Then by all means get out of them. Want to preserve your health? Then stay away from people with contagious diseases. Want to preserve your car? Change its oil and care for it. Want to preserve your house? Paint it. Want to preserve your garden? Weed it. Want to preserve your net worth? Get out of dollars, by converting them into tangible, useful, long lasting, beautiful, historic money, which is gold and silver. Protect yourself.
P.S. Isn’t it sickening to watch the charades about solving the enormous debt? While the Democrats and their illustrious leader insist on tax increases, and have yet to put anything on the table for which a vote could be taken? All the while Italy, Greece, Portugal, and Spain are in literal chaos for doing exactly what America has been doing since 1933 and even before, if you want to go back to the beginning of the income tax and Federal Reserve. The literal dummies who are left, after the Tea Party Republicans captured the House of Representatives, don’t seem to understand what a dire predicament politicians have gotten us into over the past generations. We are at the brink of going down the tubes as have all other nations because of fiscal stupidity. To hell with the republicrats. We need a legitimate TEA PARTY. Let the RINO Republicans and Democrats join together, and oppose a real, authentic TEA PARTY, who would straighten out the mess.
I’m getting tired of writing stuff, because it does no good and hasn’t changed a thing. Why do I waste my time with it? A couple of hundred thousand readers won’t solve anything. Just protect yourself and watch the D.C. Gang ruin us.