Sometimes one “REALITY” so grabs our attention it awakens us from a state of denial. My wake-up call came during the aftermath of Katrina while watching desperate citizens of New Orleans cope with the unthinkable. Katrina exposed two things I want to share with you today and both should keep everyone dependent on entitlement up at night (yes it has everything to do with owning silver & gold). I’m not sure what surprised me most, watching helpless folks stranded on rooftops plea for help while streets turned into rivers or multiple layers of bureaucracy so large, so inept it couldn’t simply react to an emergency without first establishing blame and protocol.
The incident I’m discussing today is a prime example of what happens when an ideology transforms a society to a point of inability.
The fact is our overall economic condition is much worse than perceived; this is why food stamp participation has doubled over the last three years. This means many once in the middle class are now part of the dependent poor. They are, if you will, future roof top dwellers holding signs for help.
Katrina was my wake up call because it proved to me we really have few safety nets in life. We can expand social programs but in the end they only create a lethargic economy, new taxation, and unsustainable deficits. What happens when a tax base can no longer support under funded food centers, housing subsidies, school lunch programs, farm subsidies, and the million other programs that can no longer fill the gap of a real economy?
I have great concerns for inner city America. I see plenty of anger and blame when someday soon entitlement programs admit they can no longer fulfill obligations. This massive and publicized outcry will not go unnoticed and this will lead to more money (currency) printing as governments desperately try to literally feed the giant they created. The alternative is to watch cities burn.
Most folks receiving government aid don’t consider themselves among the poor. They fail to recognize a lifestyle or condition without the help of programs.
I doubt most gold/silver holders truly recognize the layer of protection they’ve provided for their families. The benefits of owning PM continue to grow each time we allow central bankers and governments to print currency in order to fill budget shortfalls. It is very important you recognize the two primary benefits of physical silver and gold well before buying it. The first benefit, real money provides sustainability and keeps its participants from sliding from middle class to dependent poor.
The second benefit is both protective and highly profitable for the few willing to trust silver and gold. This benefit allows those holding physical PM to expand wealth while the rest of the world realizes fiat currencies can no longer print themselves out of fiscal mistakes or promises. This is why an ounce of silver or gold will soon be worth ten times its value today.
Right now each of us has choices. We can accept dependency – like most of us eventually will – or we can begin to provide for our families a layer of INDEPENDENCE one ounce at a time. Yes, it really is this simple.
QUESTIONS & COMMENTS:
COMMENT: Here is how I see it so please tell me if you disagree. I too believe ones who still hold wealth will frustratingly turn to physical PM when the “realization” you often discuss becomes reality. But who’s to say the same folks buying silver at say $100 an ounce, or gold at $3500 an ounce, won’t eventually have to sell the one wealth-holding investment just to feed a family or put a roof over their heads. To me, it seems most who buy silver or gold now will end up having to resell when things get tight.
TPS Reply: Great comment and thanks for sharing it with us today. Yes, you’re probably correct, many who buy silver and gold today will have to sell, barter or trade it down the road as our economy continues to correct, I won’t argue this probability. Precious metals are the ultimate savings account – the reason we save is so we have options when the unexpected enters our lives. To not save is to rely on a failing ideology, the same ideology that left Katrina folks on roof tops, for our family’s well being.
You make valid points but miss the true benefits of owning physical PM. I have great concerns over the short term and bigger concerns over the longer term. I feel budget strapped cities and states will reduce the same social programs many now depend on to survive. This will cause a backlash so disturbing – burning cars and looted buildings – eventually leading to more entitlement only supported by digital currency creation and taxation (remember, our country is broke – just like many other countries around the world).
Okay, stay with me here. When we print too much money the buying power of our currency declines, this is why a box of cereal is twice the price it was not so long ago. This is why a box of cereal and other necessaries someday soon will cost far too much for the average family budget to afford. At such a point, the only option is to forgo a healthy diet or rely on government assistance that is only available by borrowing (printing) more currency.
Now let’s tie this all together. Let’s say a family sells the camper trailer today and then buys physical silver at $30 an ounce (300 ounces of physical silver). You mention $100 silver in your comment above so let’s use this number since I feel $100 silver is not only possible but a fraction of tomorrow’s offerings.
By trading a declining asset (camper trailer) for a growing asset we leveraged the power of wealth relocation. Wealth relocation is something I wrote about extensively in Why Silver & Gold Will Go Higher, probably the most powerful weapon for wealth expansion and independence. Now that we own physical silver, or gold, we have the luxury of watching all things priced in dollars rise but stay relative in terms of PM. By example, an ounce of silver buys around 8 boxes of my favorite cereal today. When cereal prices rise so will silver making it possible to buy the same number of boxes regardless of price.
The power of PM is beyond questioning since history shows all fiat currencies eventually print themselves worthless (we are witnessing this right now) proving only one true source of money – gold & silver.