Monday, February 02, 2009

Eminent Domain

Remember all the treasure hunt stories. There was never a treasure hunt for paper money! At some point, it becomes worthless.

Don't buy US Gold

You need to buy a few of those … pure silver, gold if you have the money, and safely stash them. If you’re even more paranoid, don’t buy the US-minted coins because they fall under eminent domain and can be confiscated at the point of a gun — it HAS happened before. Your safest bets are pre-1933 US gold coins minted by the US Mint or foreign gold, like British Sovereigns (I like the 1/4 oz coins).

As a sidetrack … I’ve been getting mail calling me paranoid and crazy. Frankly, I don’t understand where those people get their unshakable faith in the US Federal Reserve Notes and this consumption/service-based economy. It’s not any kind of a secret, people, they even say it loud and clear on CNN/FOX NEWS — we are both a SERVICE economy and a CONSUMPTION-based economy. Two thirds of our economy is driven by consumption, not production. Therefore, in a country with fiat currency, the only thing that can possibly give that currency any intrinsic value is production and productive capacity of the people. What happens to a consumption-based economy then there is nothing else to consume?

Just think about your position for a second, the way I thought about mine. I’m a yuppie (young urban professional), and just like the rest of the office plankton I don’t produce anything … neither am I a value-add for anything my company produces. Are you a doctor? A farmer? Do you know a trade? If no, you, like me, are the first on the chopping block.

You need to buy Silver

You really have a couple of options. Buy US Mint precious metals if you’re not afraid for G.I. Joe confiscating them at the point of his gun. Buy some other form of silver if you are afraid of G.I. Joe slash Uncle Sam confiscating it when the time is ripe.

I’m taking my chances amd buying rolls of 10 US Mint Silver Dollar Eagles every paycheck. Sometimes, when the website advertisement paychecks rolls in, I buy a bar of Swiss Gold.

You’re asking, “why?”

Couple of reasons. First, I’ve been though currency devaluation before in the USSR. Not very fun. I’m talking, “run out and buy up whatever tangible durable goods you can because the paper money ain’t gonna be worth much in a day”.

Second … With the massive amounts (trillions) of dollars of money Federal Reserve is printing to cover the bailouts, I’m predicting massive inflation.

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