Everything is down it seems. Stocks, precious metals, the euro, and economic disaster plagues Europe. Spain has a 25% unemployment rate, and its banks are on the verge of going under. Italy has debts galore, and doesn’t seem to want to economize to pay them, and Greece has riots when the handouts are cut off or threatened to be cut off. Greece’s economics are so pitiful that it is almost laughable. For decades, there was no limit as to government handouts, early retirement, and tax collections. Tax collections were pitiful, and it was the vogue not to pay. Retirement in the 50’s? Sure! Greek debts are literally unpayable.
In France, the newly elected socialist is forming his cabinet, and I’ll guarantee you economic stability is not in France’s future. Portugal isn’t much better, nor is Ireland, and Belgium has just joined the ranks of shaky economic situations. Germany has had enough of bailouts, and refuses to do more. The euro may not last, but we will see.
Canada is duplicating the housing bust we had here a few years ago, and mortgages can be had for 3%. Housing prices are going up as much as 10% a month in Canada, and real estate sales are booming, just like they did here a decade ago. House flipping? Sure. Just look at Toronto, but all of Canada is the same. Do not buy real estate in Canada, and if you have some, sell it before it collapses.
Here at home, we see Obama and Romney pulling all the stops with negative ads. No one has yet found out anything about Obama, such as his grades, thesis, history, or for that mater, how he ever even got to be a Presidential candidate, much less a Senator. His birth certificate is an obvious fake, and Arizona sheriff Joe Arpaio is taking on the birth certificate matter with real gusto, and as a result is being sued by the feds for something entirely different, such as upholding the federal laws on immigration, which the feds refuse to enforce. He could use a few bucks for his defense, and if you can spare a few, send them to him at Box 5066, Scottsdale, AZ 85261.
I bought gold at $1600, and of course it went below. I bought silver at $28.29, and we’ll see, but a year from now, all will be OK and I will be at a nice profit, without doubt. How low will it go? I think it’s at the bottom, but my crystal ball dropped on the floor and shattered last Friday, so it won’t work any more. The old expression is “Buy low and sell high.” It’s low now. Those who place their trust in paper, will always lose, and even if you don’t actually lose dollars on an investment, you will lose anyway, because inflation is a universal tax which no one can avoid, unless they invest in tangibles.
When I was a kid, gasoline was 20 cents a gallon, and a candy bar a nickel. Same gas and same candy bars, except the candy bars are about half as big as they were then. What’s changed? The value of the dollar, and the only way to protect ones self from it (inflation) is to get out of them and into tangibles. Any tangible and all tangibles, such as lettuce, tomatoes, roofing, tires, furniture, seed, fuel, and of course gold and silver will go up in dollar prices, which just means the dollar is losing value. Why is it losing value? Because the presses are running day and night, figuratively, but the fact is that billions of dollars are being placed into circulation every day by banks and the fed. This means that they are losing value, and unless D.C. ceases to exist, the trend will continue unabated. How can a politico get re-elected or elected, unless he or she promises largess from the public trough? If you have surplus dollars, don’t store them in a bank. Store them in tangibles, which are easily bought and sold, require no huge storage space, refrigeration, property taxes, insurance, paint, or maintenance. Bullion gold and silver is not a matter or age, condition, or opinion. It is just ounces of precious metals, and never requires appraisal or certification, any more than a jar of Hellman’s Mayonnaise. An ounce Gold Eagle is just that, and it is not made in China, as are many numismatics today.
Isn’t it grand? Spring is here, the trees are out, tulips and forsythia peaked, and Colorado’s columbines are coming up. The three 14,000 foot mountains I see from my window 30 miles away are still full of snow, and all is peaceful in my small town. When it hits the fan, it won’t be pleasant in big cities or in California. Isn’t there some way of floating Washington D.C. down the Potomac and sinking it in front of Mt. Vernon, George Washington’s home? In his grave, he would appreciate it.