Monday, September 28, 2009

Cash is King...Or is it?


Well here we go. Federal Government is increasing Debt to all time highs. The Fed is printing money faster than the ink can dry, all the while telling us the recovery is at hand. Things don’t seem to be getting better, but so far the dollar hasn’t inflated much in spite of the huge printing run. Why is that? Because we’re all hoarding the stuff! Think about it. If the fed is printing more money, but everyone is hoarding money, the relative volume of cash stays the same. It’s not until we the people go out and start trying to spend our hoarded up money that inflation will set in. And it will, and once it does our economy will see the BIG dip. And since the federal government is up to it’s eyeballs in debt, there will be little recourse on their part. In fact at the G20 Summit, the other nations of the world are seriously wanting to get rid of the American Dollar as the international currency of trade! If China stops buying all of our government bonds, the Debt of America, our currency value will drop like a lead brick. Imagine paying upwards of ten dollars a gallon for gasoline, or five for a loaf of bread? Our lives are so based on foreign trade that America no longer stands on it’s own anymore. So America will go Bankrupt. And our creditors will buy up our federal land, our military equipment, our gold and oil reserves, pretty much everything that makes America great will be gone. And your couple of thousand in cash? Gone so fast you blinked and missed it. Your wages won’t be adequate for feeding your family. Cash will be all but worthless and the necessities of life will be more valuable than bricks of gold. Food, clean water and shelter will be invaluable as people are driven from their no longer affordable homes. Shanty towns will form and everything will be pretty close to the great Depression, except this time we will have enemies with nuclear arsenals. They will laugh and laugh at our prideful stupidity as we allowed ourselves to implode.
What can you do? Here's an idea, buy one full months worth of non-perishable food. This is good advice regardless of what may come, because if anything bad happens, food shortages will be the first problem. “But I need the cash if I lose my job!” You reply. What do you think you’re going to be spending that cash on!? Buy food supplies now, it’s not paranoia, it’s common sense. If where you live floods, you can’t drive to the grocery store. Tornado could blow the store away. Any number of things could cause you to be unable to go grocery shopping. Be smart and take care of your family. Cash is only worth what you can buy with it.

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