Open your wallet. Take out that last dollar you have and put George’s face close to your ear. Hear the screams??? Believe me when I say he is screaming. I believe we are about to witness the biggest implosion on the value of that buck. I mean it’s going to be worth 30-40% less within the next three months. I hope you really understand what that means.
Gas today $3.00. Gas tomorrow $4.00. Pow just like that. Let’s say you have done well in spite of the economic crisis and by September you will have saved enough money to buy that $200K home, but hold on… it is going to cost $280K, and you are going to have to wait another 5 YEARS to get enough down.
Most people really don’t understand how this works. Hell, most finance people really don’t get it either. The problem is ignorance (not meaning it in the demeaning way here) does not alter the facts and the impacts that must occur. It is no longer a maybe, it is a sure thing. How did this happen?
Simple, it started with “tricky Dick” in 1971 when he decided to shut the window on trading dollars for gold. Even though that turned the whole money game into Monopoly Money, the rest of the world played along in this craziness, keeping the dollar as the prime trading currency in the world. But recently they can’t go along with it any further. Why? Well for one thing, with the latest “stimulus” packages, we now have the dubious honor of NEVER EVER being able to pay off the national debt. NEVER. Think of it this way, stimulus is another word for foreplay and we all know what comes after foreplay.
Remember last year when Zimbabwe started printing first million dollar notes, then BILLION dollar notes.. Well you get the idea. Printing money and pretending you are somehow buying your way out of deep dodo is a fool’s task. Yet, that is exactly what our government and Fed is doing. Last week, the Fed put up $130 Billion in new treasury notes and for the first time in history, nobody was buying. So what did the Fed do? It bought its own notes? WTF? That’s like you having a garage sale and buying all your own shit back. That helps you financially how?
Why am I writing about this. Simple. Whatever you are planning for financially, you better be adding about 30% to the cost right now. I’m not even going to mention how this all fits into the rest of the sinking economy. We are already hearing noises from Russia and China about finding a new world currency and a lot of the OPEC nations have dumped the dollar for other currencies to buy their oil. Swiss banks are requiring you convert your dollars into euros before you can open an account. Oh BTW I have some Kuwaiti Dinars for sale. They are on sale for oh $3.50 each! Poor George, we hardly knew ye.