Another Warning

This freight train is building up speed, folks, and actions which were objects of scorn two years ago can be discerned now quite clearly. Here are some serious warnings:

1. Empty out your safety deposit box. Your bank manager will confirm that if there is a Friday surprise he can not guarantee that you will ever have access to it again.

2. Start pulling your cash out of banks. Again, turn as much of it as possible into real property–which does not mean “real estate”but tangible assets. It doesn’t matter if the banks crash before the bond market does or whether the dollar crashes or is devalued first. The interests rates are so low it is very inexpensive insurance to remove your personal wealth from sinking Bernankes and store it in metal, C-rations (sorry, MRE, “meals, ready to eat”), or cowrie shells. I’m famous for saying, “The worst that can happen is…” and the worst that can happen is you will lose the premium you paid for gold coins (there are better ways to buy metal), forfeit the 1.13% your funds are accruing in the bank, and have to pay the premium to sell silver ingots back much later. Don’t stand there like a deer caught in a jack light, and don’t expect any sympathy if you go to the bank one day and see signs that say “Bank holiday. Closed until further notice.” or “Daily withdrawal limit $300.” There are proposals for those very restrictions floating around, and that limit is going to include transferring funds between banks. Mr. Paulson asked for permission a while back to post SWAT teams to prevent bank runs.

3. You’ve been warned repeatedly to accumulate a bare minimum of three months’ supplies of food, water, and Sudoku puzzles, those representing whatever you, personally, would not wish to be without in times of stress and crisis. Don’t forget the Tullamore Dew.

4. If the dollar is devalued again history shows that the usual amount is on the order of two-thirds. If you want to risk getting roughly thirty-three Amero coins for a Bernanke, you keep your innocent faith that this is “just another bump in the road” and that Mr. Obama couldn’t possibly do what Roosevelt and Nixon did. When the dust settles from what at best will be a controlled demolition you have watched go whoomp-whoomp-whoomp-whoomp-whoomp in a series of rapid shocks you will take what you are given on any assets you haven’t squirreled away in hard money of various kinds including tobacco, soap, fifty pound bags of rice and pinto beans, and canned corned beef.

Our world is a-swirl with forces building hurricane speed, each having an impact on the others. The concatenation of instability in the bond and stock markets, housing and commercial real estate, the mushroom cloud of increased “money” supply, job losses developing in the auto and tobacco industries due to recent legislation, the Chinese and Japanese at least eying manipulating our currency or replacing the dollar as the standard against which other currencies float, and the possibility that the government is going to appropriate the health industry are just some of the warning signs that indicate it is time to head for the storm cellars with the kiddies, the livestock, a kerosene lantern, a good book, and an enormous picnic lunch.
More

Gold would probably not be confiscated but everything else would.
Link