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The Million dollar Postage Stamp
By de Andréa, Opinion Editorialist
for ‘THE BOTTOM LINE’:
for ‘THE BOTTOM LINE’:
Published September 26, 2015
I would be remiss if
I didn’t share this with my subscribers.
You can do whatever you want with this Information. Ignore it as I have
for years, or add it to you preparedness list.
In 2012, I published The complete Guide To basic
Preparedness, as well as give
presentations in the area where I live.
If you haven’t read it or haven’t even begun to prepare for some kind of
long term disaster, I would highly recommend it. It isn’t too late, yet. But the guide is basic as it is represented. In
other words there are a few things not covered in the Guide. Here are a couple
of them.
During WWII when I was growing up
one of the things I did besides collecting tinfoil for the war effort, (which
never got used by the way) was to collect stamps. And still today I have a
Germen stamp from the 1930’s with Adolph Hitler’s picture on it and a value of one
million marks, which is the German dollar.
It’s not that stamps cost so much it’s that the mark had become
worthless. People had to spend their pay
every day which was generally cash, wheelbarrows full of it, on the day they
got paid, because the next day the mark would be worth 10-20 % less. At the end
of every week the mark would lose 100% of its value. Soon there wasn’t enough
currency to buy even the most necessary things. So the government printed more
and more money inflating the mark even more, until…yes even a postage stamp to
mail a common letter literally cost a fortune. It’s called runaway inflation my
friend. But it couldn’t happen here…or could it?
Well it very nearly did in the late
1970s during the Carter administration.
We had 12-14 % inflation until Ronald Ragan was elected president and
balanced the supply of goods against the supply of money. Called “Supply Side
Economics.”
Now bear in mind I am not an
economist nor a financial wizard but I do have the common since that God gave a
mule. Which is more than I can say for most of the people in government. Most of them are lawyers or career criminals
and are not economist either. At best they are programed robots, at worst they
are stuck on stupid or as I said, career criminals, else we wouldn’t be in the
predicament that we are in now.
After the 2008 economic bust, the government printed
billions of dollars bailing out corporations and financial institutions. The money printing went on and on until they
had printed trillions of dollars. The corporate recipients, banks and insurance
companies that received all these trillions of new crisp dollar bills for the
most part, just sat on them. Banks didn’t loan it, not at such low interest
rates set by the FED. Corporations aren’t spending it because they don’t know
what the government is going to do next.
Manufacturing of goods went down and people lost their jobs. So far very little inflation.
But what happens when the FED raises interest rates
off of nearly zero. Banks will start
loaning money, corporations will start expanding and all those trillions will
hit the economy like a sack of rocks. Suddenly there will be tons of money and
nothing to spend it on, because there will be to little goods chased by too many
dollars. The low supply of goods will
demand more money. And the prices will
climb and climb the dollar will inflate to 20-30-50-70 percent of its original
value. Soon there will be a shortage of dollars to pay these outrageous prices.
So the Fed will print more money to meet the demand so the prices will continue
to climb and more money will be printed and so on and so on until a stamp cost
one million dollars.
In the meantime your savings won’t buy a days’ worth
of groceries and your retirement won’t pay your utilities for a month.
This may be an over simplification of the truth but ‘if’
the government continues down this road my friend, this is where it leads. And I say again…”If.”
So what should you do? Well that my friend, is
between you and your financial advisor. I wouldn’t pretend to tell you exactly
what you should do. Except you do need to do something.
All I
can do is to pass on some general common since ideas. Mostly what not to do, and that is obviously
not to horde a lot of cash, either at home in your mattress or in the bank,
especially not in the bank. Whatever you do, do it in moderation. If cash is going to lose its flavor on the
bed post overnight then hard goods that you need every day would obviously be
more valuable than money, especially if the prices go up. This is basic, found in my complete Guide To basic
Preparedness.
Next I would trade some of my dollars for something
that will hold value such as toilet paper…well…one can only store so much
toilet paper. But I hope you get the idea stored food, soap, everything you use
every day. Then…you might consider some gold, silver, platinum and palladium
coins. They have never been worth nothing.
When and if the dollar becomes worth less, the coins will be worth more.
Just do it as I said in moderation no
more than 10 -15 % of your net worth.
The other Issue not covered in the Guide is…if you
have been smart enough to prepare. And your neighbors haven’t, and if they get
wind of the fact that you have what YOU need and they don’t. The natural thing
for them to do - might be to take it all away from you.
Now if some woman comes to my door begging with
three dirty starved little kids I am certainly not going to send them on their way without something,
after checking to make sure there are not several thugs waiting in the bushes
to run at my door. But if someone comes to rob what I have for the survival of
me, my family and dog, then I had better be prepared to defend it. The
appearance of a Mossberg 500 12 gauge might be just the deterrent needed…or
not…in which case you might need to demonstrate what a 12 gauge short barrel with
00 Buckshot can do at close range. Trust
me it’s devastating. It’s the world’s
best all-around home self-defense weapon.
THE BOTTOM LINE: As I said earlier I am not a financial genius or an
economist but I am not a fool either.
Before you do anything like this you should check with your financial
advisor, but don’t just do nothing and watch your dollars become
valueless.
This may not happen at all, but what I do know is
if the government continues on this path to nowhere that is exactly where we
will end up. Nowhere, with nothing!
If for some reason the government develops some guts
and decides to do something smart or just get out of the economics business, step
back and let this capitalistic economy do what it does best, and our economy
recovers, then you really haven’t lost anything. Stored food can be eaten, soap can continue
to clean you, toilet paper…well… you know what to do with that. And gold, silver, platinum, and palladium has
never be worth nothing.
Thanks for listening – de Andréa
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