The world system is in dire straits from an economic point of view. Right now, the Euro is the focus. Financial institutions have embedded time bombs of derivatives in their balance sheets. MF Global was a fine example of how quickly fortunes can reverse. Once the dominoes fall in Europe, the focus will move to the U.S. Dollar.
Once the U.S. Dollar is in the crosshairs of the major financiers there will be volatility and fear will overtake greed. There is no way out except by Divine intervention. The U.S. Military are located around the world for the purpose of “National Security” or for the protection of our current lifestyle. But as the global economic system deteriorates, desperation will replace common sense, especially among the poor and unemployed. A simpler lifestyle will result from this crumbling system. You can choose to accept it now or wait until it is forced on you. The choice is yours.
Although governments and media have tried to convince us that gold and silver are barbaric relics of the past, none of them are selling their gold reserves. Of all the known official gold reserves of governments around the world, 57-60% are stored in New York City Federal Reserve. If things get dicey, President Obama may confiscated those reserves held for other governments and move them to a safe location such as West Point. He would use the International Emergency Economic Powers Act (IEEPA) of 1977 to accomplish this.
Other countries would not be happy with the forced conversion of their gold to be paid back in U.S. Dollars. This is why Venezuela’s central bank has requested its 99 tons of gold holdings from the Bank of England, according to a bank statement sent by e-mail (citing the institution’s president Nelson Merentes).
It might be time to take a refresher course on gardening and convert some of that bermuda grass beauty to tillable land. I hope you haven’t put too much herbicide on your lawn. The body doesn’t process it well. This great chemical experiment of the last six decades will soon prove to be wrong. Biblical-based farming techniques will replace chemicals as the farming method of choice. Range fed cattle will return to become the preferential method of raising cattle.
Mass transit rail systems will flourish as people reduce their automobile usage. Europe figured this out decades ago. The fat and happy American will slim down. Hard assets will once again reign as stores of value. I expect silver to return to its “Love” ratio of 16 to 1 with gold. This convinces me that the average guy can do well by investing in silver and I am an average guy. Gold may be subject to some type of restriction going forward so it is not as exciting as the prospects for silver. Removal of all debt should be your immediate focus. The fine print in many contracts is designed to protect the lender in case of extreme economic difficulties. Keep some cash on hand in case a Bank Holiday is declared at some point.
Things were going so well in the 1960’s!