Thursday, October 16, 2008

Savings? What Savings?

One thing I am finding annoying are all the lame comparisons with 1929. I've got news for these people: This isn't 1929! Americans have little or no savings. (I know I don't--at least not in fiat currency.) As pointed out in No savings allowed, if your job goes in the crapper, most Americans have nothing to fall back on but unemployment. This means the situation is both individually better, but probably collectively far worse as there is nothing to re-build upon (not to mention that US industry has been dismantled and "outsourced" overseas). To make matters worse, after all the money has been printed to pay for bank bailouts and other government programs, even those who do have money will end up with nothing. In 1929, if you had all your money under a mattress, you could conceivably ride it out. Soon, even that option will cease to exist. So my advice is to buy physical gold (assuming you can find it for $100 over spot), and if you can't afford it buy silver (assuming you can find it for $4.50 over spot). Prices are being Manipulated, so you might as well take advantage of the situation and at least have something in reserve for The Fall.

No comments: