What is Next?

I’m trying the saving cash thing again and so far I seem to be more successful compared to my previous attempts. It is not a lot of cash, but it doesn’t seem like it is “burning a hole in my pocket”.  With the market getting crazy, I seem a bit more focused on what little cash I can save.  I know some folks like silver and JM Bullion has a new product and I bought a Elemental 5oz. divisible bar. The 5 oz. bar is slightly larger than a deck of cards.  I think this is a great buy for all preppers and silver stackers. With the silver spot price under $15.00 per oz. you can get the bar for about $85.00. I have bought from JM Bullion and while they are not the fastest for shipping, they charge no shipping costs and generally have a low premium cost for their silver. The 5 oz. Elemental bars offer more silver at a lower cost than the 100 gram Valcambi bars but you don’t have quite the same “name brand trust” with these new bars. I think getting almost 2 more oz. for a lower cost pus you split the bars into 1/4 oz. rather than 1 or 10 grams make them a better buy.

I have been seeing some outlandish numbers tossed around about the future value of silver and gold in dollars. I don’t think some of those numbers are unreasonable but remember it is not that gold or silver are gaining value, as much as the Dollar is loosing value. A pre64 quarter will probably still buy a gallon of gas or a loaf of bread. But the value in dollars might be $3.00 like today or a few hundred if silver is valued at $601.00 per oz (per John Williams at Shadowstats).  I think before buying silver you should buy the ingredients and learn to bake bread rather than count on silver or gold to save you.  In Wiemar Germany the cost of bread went from about 4 marks during the war (1915)  to over several million marks by 1923.  Bread did not become incredibly valuable store of wealth,  but the German mark became essentially worthless. I recommend you buy 50-100 pounds of unbleached white flour, some yeast and salt and learn to bake bread. At the very least you won’t have to pay inflated costs for a loaf of bread and you might sell a few extra loaves at the local farmers market and pay off your house.  Trust me if gold and silver skyrocket priced in US dollars,  Hunt’s pasta sauce and Angel soft tissue paper will sky rocket in cost right along with it.

What I suspect will happen is all of the basic things we need to live such as shelter(rent), food, energy(gas for cars and utilities) , health care, will keep inflating. Toys and what most consider wants, not needs will get cheaper or deflate. For example I got an email from Harbor freight for a 900 watt generator for under $90.00 that is normally about $120.00. Harbor freight is not giving me that sale price because they love me or think I’m a great human being.  They need to liquidate and have cash flow/inventory problem. Car prices are starting to crash and what was a $60,000 pickup is being advertised around $35,000.00. The shale oil fields are no longer making profits and several companies are close to insolvency.  These are all Macro-economic events but Joe Six pack has a $500 dollar a month pickup truck payment due and just got laid off.

What I recommend is:

  • Get out of the market, I think this a “dead cat bounce” done by the PPT and the Fed. If it is paper profits or paper stocks, get your best price and leave. If I’m wrong you can sell high and BTFD rebound.
  • Don’t trust the big banks with your cash. If you have saving you are now an Unsecured creditor to the TBTF banks. I would put your money into a credit union, pay your bills monthly, withdrawal most in cash, and orpay a month or two ahead if you are allowed on bills.
  • Buy tangible goods you can stock pile at home. Food, fuel, tools whatever you need. If I’m wrong you don’t have to buy food for a month or two. No short term power outage will be a big deal and you will have either the camping or tailgate set up that will be the envy of your friends.  If you don’t have a wood stove I would recommend a Mr.Buddy heater and a store a couple of 15-20 gallon propane tanks.  The Mr. Buddy heaters are relatively safe and each 15 gallon propane tank lasts about 5-7 days depending how cold it is outside. I have cooked nearly all my meals this summer using a Weber gas grill and used about a 1 and a 1/2 tanks so far.
  • Store cash to buy  tangible goods you will need, and are starting to get cheap.  I know fiat paper has no real store of value but most folks think “cash in hand” is a good thing. While I prefer not to take advantage of people’s ignorance.  At this point a person must be willfully ignorant if they do not know the real value of their stuff.
  • Have a bit of fun and try new things. I fried up some zucchini using a dip in egg wash and some flour with season  salt, fried it and it was wicked tasty.

This is a great time to try new things and test your preps.  As you test your preparedness level you will gain confidence and be less prone to panic.  I want you to ask your self a question. If you knew the stock market would collapse to 5000 on Monday the 31st of August what would you buy this weekend. I trust you could make a solid, well thought out shopping list for Sunday. While you don’t need to get it by the 31st of August. You will have a good Idea of what you need on hand this winter.

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