after abandoning the gold standard the dollar was on its way to becomming the greatest pyramid sceme in the world. Its now predicated on a dollar being worth a dollar. let me explain. I believe I can trade my services for X dollars because I can purchase services and goods for X dollars. As prices increase due to inflation the X factor changes. I believe the dollar I used to get for my services is worth less and I need more of them. I raise the price for my time if I can or suffer a loss of buying power. Most of us suffer in the lag time between adjustment to this equation if we work for someone else. We still believe that a dollar is a dollar even though it has less buying power. You don't hand someone money and say here is a picture of Washington. In our minds it is stil a dollar even though its true value(spending power) changes. The FED in its efforts to increase the money supply begins the cycle of inflation. We all hope to hold on to something that will be worth more tomorrow than today. We can't buy enough raw goods today and preserve them for tomorrow without incurring a cost that takes away the value of the commodity. Even buying futures is a belief that someone will honor the commitment tomorrow. One big ponzie sceme but it has always worked in some form or another. Hell people even invested in tulip bulbs in Holland . What a mess that was. The thing we have to protect the most IMO is for other countries to believe our dollars are worth something and send their money here. Let THEM be on the loosing end of the pyramid. This whole sub-prime mess and bailout seen to put a question as to the value of the dollar and foreign investment is sitting it out for a while to let the dust settle. The big question is what does the average American do. Buy gold and at least you will have something valued around the world. Will it be worth more tomorrow than today. how do you know its realy gold when you buy it?. Buy commodities futures and the same question is true. Put your money in the bank and hope it is sound? does FDIC mean you get ALL your money if the bank fails? Take it out of the bank and hope the IRS doesn't come knocking on your door because of the red flags associated with CASH money. But I think my wife has it all figured out!!! spend it all today because it won't be worth sh%$ tomorrow or even be there!!!!
I can get behind most of what you're saying. There are definitely things that are worth spending a lot of money on NOW. All your basic everyday living commodities are going to start skyrocketing soon. Our dollar is being purposefully devalued because Bernanke believes inflation is our savior. He truely does. We're going to see some fucked up shit in the coming months and years.
I've stocked up on diapers, toilet paper, meats, baby formula, just to name a few. Better that I spend my money on it all now, while it's still in a decent price range. $5.00 rolls of toilet paper are not out of the question in the near future.
Meanwhile, owning gold and silver is a way to hedge your cash against inflation over the long term. At some point, even if you sold your silver and gold later for less than what you initially bought it for, you're typically STILL going to have more purchasing power than you would have had with the cash you bought it with. The same amount of gold now, buys the same amount of goods as it did 50 years ago.
We haven't even started to see the real effects of the money supply expansion that's been going on lately. All these artifically lowered rates again. We could possibly be being set up for another bubble, a commodity bubble...but if that's true, how do you avoid contributing? You NEED commodities.
Whatever the case, people need to be preparing. It's extremely wise right now to take any surplus federal reserve notes and go stock yourself up with about a year's worth of your living necessities. What's the worst that happens? You eventually use it all up anyway, so it's not even like you're taking a risk.
Or, you can remain dependent on the system (jillian), and hope and pray that your government figures it all out for you, and rescues you from having to make those tough personal decisions on your own.
