Friday, May 27, 2011

Can't Turn the Spigot Off Blues

Read this. Here are a few shots from the article to give you an idea of the importance of the subject matter.

That blue line down at the bottom heading up from left to right is a support line. It is not a tried and true indicator but generally it is a good barometer of where things should be. Now over towards the end of that line you can see that the actual index has completely crashed through the support line. If you have any excess d011ars, convert them to something tangible. It doesn't have to be precious metals but by all means avoid like the plague anything paper. A CD, for example, is paper. It is only worth what they say it is worth. AND they are the ones holding on to it. People whose wealth only comes in the form of savings accounts, money market, stock market, may soon find those assets locked away while the prices of staples begins to hyper-inflate. Litigation to get your money back? Good luck with that.

The above graph is a good illustration of the value of the d011ar. Most people really don't know what that means and I am not about to try to explain it because I don't totally understand all the implications either. But what I can understand is that as the gov allows trillions upon trillions of paper to be printed they overall value of my paper goes down. Gas, food, precious metals all cost me more with every piece of paper they print.

A typical Hollywood scene shows our hero trapped in a room with water rising around their feet. This is the plight of Americans today. Most are trapped in a room with monetary liquidity rapidly rising around our waist's and no one seems capable or willing to turn off the spigot.

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