No doubt, we live in a parallel universe… and having a Roller Coaster stock market only adds to heighten our anxieties. History, leaves us a good a lesson from the Roaring Twenties, leaving me to ask… should we, in these times of gloom & doom… party less or more?
Will the next Earthquakes, Tsunami or Volcanic Eruptions beginning on September 27th through November 4th put additional stress on our shopping plans & finances?
Photo of Inca Bob doing a Grass Hopper Dance for Wall Street’s recovery
The price of everything seems to be falling… stocks, gold, silver oil, copper… That’s how it is in a liquidity crisis. Everybody wants to sell everything – everything except dollars. Folks are bailing out of assets and seem content to buy US dollars.
So the dollar isn’t going to zero this week. Yeah, it’s a worthless fiat currency. Yep, the Federal Reserve said it would continue buying Treasury’s (with newly printed worthless dollars).
But these things don’t happen overnight. Prices don’t rise and fall in straight lines. When people get scared, they sell every asset they can. Selling assets is just another way of saying they’re buying money. And everyone still thinks the U.S. dollar is money. So as the price of everything continues to fall, the price of dollars continues to rise.
Some day, we’ll get tired of the Fed’s mismanagement of the U.S. dollar. Until then, remember Gresham’s Law – “bad money drives good money out of circulation.”
That means people hoard the good stuff (like gold and silver) and circulate the bad stuff (like U.S. fiat dollars) for as long as they can get away with it. So for as long as we continue to print new dollars like they’re in danger of going out of style, folks will buy things with U.S. dollars and continue to hoard gold and silver. (They’re only in danger of going out of style because we continue to print too many of them.)
When will the U.S. dollar completely fall apart? Nobody can tell you that. They can only tell you how to prepare for it and my advice is simple… Holding your physical gold and silver is the best way to prepare for your next party!