Metals and Inflation Update.

I like this diagram, so make believe is subtly relevant to this entry.

I didn't make a quick profit yesterday as the markets collapsed. My open order was way to high.

If you missed events on Wall St., check out any site to see the collapse. The story is there was a sell entry mistake (1 billion instead of 1 million) that caused Proctor and Gamble to collapse, dragging down the entire market in minutes. A huge, short-term collapse of many stocks.  I mean huge.  Love those computers.

Meditate on what this price collapse tells us about the market.  One push, without any connection to fundamental facts, put the entire market in a free fall.  We are exposed.

Call me paranoid, like everyone else, but I have a hard time believing there was human error.  It was a brilliant way to make money, if you are a fraud. Personally, I would investigate George Soros, then China, then the administration.  Check for foreign accounts in the name of whoever is supposed to have made a wee error. See if he or she is still working in the U.S. in a week.

I am keeping my little stash long term, so no problem.  As the markets drop, I don't.  I am a little early in my pessimism, but I am infallibly correct, I think.

Anyway, here is the point of the blog.

An indicator of Christmas future:

I don't think anyone needs to be a veteran investor to get the gist of this movement. You can say we are in a gold bubble, but notice Greece collapsed, their are riots in the streets, and all eyes are on Portugal, France, and so on.  When people are facing ruin and hunger, the social contract is over.

The EU currency is on the way down and, perhaps, is in its death knell.  Why would Germany want to be supporting Greece, Portugal, Spain, Ireland...? We can be sure German is losing all interest in a Fourth Reich. So, the U. S. dollar is the best place to move money - for a little while.  However, we are only having coffee in the base camp as we dimly look up to see the largest avalanche in history has started, seemingly far away.

Note, that the U.S. and other governments had a policy of interlinking economies in order to prevent war, a good idea with, hello government!, unintended consequences.

So, mull this over and act accordingly.  Remember, when everyone figures out what is happening, it is too late to act.

Recall, it is easy to buy silver coins, called "junk silver" without any record being made, knowing that if the collapsing financial systems hit us hard, the coins will have street credibility.  Even having a Canadian savings account will be a good investment.

Get out of stuff, except for food. If you can, believe it or not, take out a loan, assuming you can pay it back, because a fixed loan now will be free money in a few years.  You could take the loan proceeds and put it in silver, then a high interest bond, as will normal in a few years, and make a profit on the spread, but that is arcane for most people.

In my early legal career, there was a time when house loans were 3%, but in a year or so, interest rates were in the 20% area.  I tried to buy a  condo in N.H. and went to the bank, ready to go, but stopped when they said the interest rate was 28%.  I am not making this up. Anyone can figure out what to do in this scenario, if he or she thinks it is coming.

I have seen very few things that are certain in this life, but inflation, perhaps hyper inflation if the administration isn't stopped, is coming. Don't listen to the talking heads on TV, the are tools of traders.

My latest idea is one should invest in the U.S. stamp.  The one with no cent amount on it.  It is a first class stamp.

If you get a treasure trove of these, this is what will happen. Inflation will drive up the cost of first class mail and you will have locked in today's price.  Further, the government, being irresponsible, has spent more than it can take in, contrary to its fantasies, so the real price of the stamp will also go up.  Further, there will be no record of the stamp purchase, other than a business deduction, if that makes sense for you.  Its like buying  TIPS bond that can be traded for food.

OK, if this seems odd, holding the U.S. dollar, to be PC,  demonstrates a challenged mindset. Find your own protective vehicle and let us know.