Woe to Thee, O Land, When Thy King is a Child
Are we finally reaching the point where gravity catches up with us and we have to admit we can’t finance the future by eating it?
The Dow is down over eighty points, and we just had two days that were even worse. Sooner or later, before we can have a real recovery, somebody somewhere has to make some money–has to create some wealth–and given our unemployment figures, that doesn’t seem to be happening. And we still have a gigantic glut of foreclosed homes the banks are sitting on. They can’t hold them forever. Eventually, they’re going to be put on the market or bulldozed. It will be interesting to see what happens to home loans and property values.
Because we borrowed an astronomical amount of money to finance the recovery, in the future, we have to make more money than usual in order to have the same prosperity we had in the past. It’s just like a student loan; you borrow money when you’re 20, and by the time you pay it off, every pizza you ate in college cost $50. What happens when you graduate with debt and then can’t get a job? That’s America’s situation.
Where is the evidence that we’re going to do better in 2015 than we did in 2005? Why would anyone think that was possible, let alone likely? And if we try to solve the problem by inflating the currency, we’ll just end up with larger numbers of smaller dollars. We’ll all be millionaires, and nobody will have a second pair of shoes. It’s still poverty, no matter how you look at it. We may be able to cheat the Chinese via inflation, but we’ll also be burning our cash reserves.
I don’t know why God provided me with silver coins, but it looks like I should be happy about it. I inherited a bunch of circulated silver coins from my grandfather. He snapped them up after Johnson turned our money into steel slugs. Seemed crazy at the time, but if we have a depression, I’ll be able to buy bread.
People think silver coins are worthless. They’re ignorant. The coins are 90% silver.
I just looked it up. My nickels are worth a dollar each. The dimes are worth over a dollar. The quarters are worth over three dollars. Wish I had enough of them to keep me alive for a year or two. Maybe I should buy some.
Gold is fine, but in a depression, it would be hard to spend. Owning gold would be like carrying thousand-dollar bills. A piece the size of a sesame seed would buy a dozen eggs. That’s useless. They don’t make coins that small. And what are you going to do, if you own it? Run a smelter in your kitchen? Forget it. Even if you could cut your gold into small pieces, no one would trust it. This is why mints exist. The purpose of a mint isn’t to make coins. It’s to make coins people can trust. Otherwise, private enterprises would be making gold coins diluted with copper and brass.
A silver coin, unlike a gold coin, will have a useful value. One of my dimes is worth a dozen eggs. Spending gold will be very difficult, but handing over a dime and grabbing a dozen eggs will be simple. Gold will only be useful if you’re buying a car or real estate. Or you’ll be able to trade it for silver, at a loss.
People say you don’t have to have precious metal in your possession in order to use it. You can trade it electronically. Good luck with that. If things get weird, I don’t want my money in the vault of some metals dealer three thousand miles away, waiting for him to declare bankruptcy and disappear. Savings accounts are insured by the government. Gold? No. When it’s gone, it’s gone. You can have private insurance, but would you trust it? Look at AIG. And the insurance wouldn’t compensate you in gold. You’d get worthless paper dollars. Better to stuff a few bags of silver in a deposit box at a local bank. If the bank fails, money will vanish, but goods in deposit boxes will remain.
If Obama and the Fed manage to eat our savings by printing money, what will we have left? Subsistence agriculture and bread lines. People in cities will starve. It may be especially bad in Florida, where we are suffering an unprecedented wave of blights and exotic pests. Oranges are probably going to get very scarce over the next five years because citrus greening is incurable. We may lose our bananas. Growing tomatoes here is already very hard; without chemicals, it can’t be done.
What do you do when you live in Miami and times get hard? The fish and peacocks and ducks would disappear in two months. Squirrels and pigeons would follow. You can’t grow enough fruit to live on, if you have a typical lot. It’s hard to grow vegetables here, and most lots are small anyway. Many homes here have topsoil six inches deep. Under that, it’s pure coral.
I never pray for God to fix things for us. Not exactly. I pray that we will turn to him and submit to him because of our problems, and that he’ll give us recovery only after that happens. We won’t learn anything from an unconditional handout. It would be a false kindness, and God doesn’t deal in those. I actually pray he will maintain the recession until we have revival. Otherwise, the suffering will be in vain. I also ask that he end the recession for those who have turned to him already.
Obama thinks a chicken can make a living by eating its own eggs. Everything he tells us goes against common sense, history, and basic economics. Borrowing only leads to prosperity when you reasonably anticipate that the borrowed money will enable you to make enough money to repay it. Otherwise, the result is bankruptcy. Can a nation declare bankruptcy? I guess so, but it won’t protect us from harsh consequences. We may weasel out of our debts by devaluing the currency, but we’ll all become poorer, and we’ll have to pay higher interest to China the next time they lend to us. This is how bad credit works. Everything costs more. But it’s worth it, so we can have essential government services, such as the subsidy of multimillion-dollar studies to tell us why trout can’t fly.
I think we’re going to have labor pains for a while. Things will get better and then worse, over and over, until the big collapse comes. The fluctuations will warn people and help those who are teachable to make preparations. Hopefully I’ll be ready. Life isn’t perfect when you’re in good standing with God, but it’s a whole lot better.Stumble it! Save This Page