(WAD!)
Goldbug ping.
We noticed. California is bankrupt and is near collapse. But that doesn’t stop the liberal idiots in charge from continuing their idiotic big spending ways. Doesn’t even slow them down. The inevitable collapse is going to be a big surprise to them. And to their legions of highly paid government union worker goons (useful idiots) who are going to see their plush pension funds go *poof*.
And the USA is not far behind.
Nominated for most charts ever in a posting. Good work.
Deflation will be disastrous in a heavily leveraged society such as ours. Debt will become nigh on unpayable. Debt will still be denominated in dollars, dollars that will be increasingly dear as they're worth more. But like cockroaches after a nuke, there that debt still is, it survived, now payable in dollars equivalent to those of thirty years ago. Who can pay a $350,000 mortgage note on a 1983 average salary? Practically no one.
Retire your debts with cheap dollars so you can keep your expensive ones is the strategy for deflation, imho.
I still think the best bet is baked beans!!
What happened most recently in Cyprus is a coming attraction to what will happen to your IRA’s and deposits in American banks once people realize what a house of cards they are.
Meanwhile these select few are out there buying all the gold, silver, available farm land and any other tangible, useful asset they can get their hands on because they know what’s coming.
...and firearms with an appropriate stock of ammo.
Wow, thanks for posting. I love charts.
Moderately prepared...
I own a small finger of a plateau - just over 12 acres. The
finger next to mine includes my adjoining hillside as well as the hillside of the adjoining land on the other side. There are two streams, one in each valley (about 70’ below the plateau) and a natural spring. It’s about 20 acres, mostly wooded with a 3 acre patch on top connecting to level woods at the tip of the finger.
I’m bidding on it at auction this Saturday. As much as I want to put the bucks into PM’s, I think this may actually be the better “deal” in the long run. RE taxes are only around $200 a year.
PM’s come next, beyond what I already have.
This thing has been obvious since around 2006, though I confess I didn’t really think it could get all that bad. It is so easy, even for those of us who don’t have TV, to be in denial about just how bad this can get. We have to forget the past and look at how current events will effect the future. And we must understand that we become numbed to just how bad it has already gotten.
We are already in WDII.(World Depression II), regardless of all the fake stats that keep being published. And yet it is obvious that we are still on the cusp of something much more serious. It’s looking more and more like it is late August, 1939. I don’t know when it will pop, but pop it will. For the US it may be the full implementation of Obamacare that is the final straw. But the word “straw” does not really apply.