Your Money Will Become Worthless

Posted Monday, June 8, 2009
Your Money Will Become Worthless


Source: Wall Street Journal - "Get Ready for Inflation and Higher Interest Rates"

With all due respect for President Obama, his bailouts, stimulus plans and weapons and wars will bankrupt the U.S. If you are an American your money will be worthless, as it loses its value in stages.

Eventually it will be replaced by another currency, perhaps one called the "Lincoln" or the "Washington." Here is why and what you can do to protect yourself:

The U.S. government is spending vast sums of money it doesn't have, borrowing it at record levels with no end in sight and no idea how it will ever pay it back.

Think of it as you maxing out your credit card but still making your minimum monthly payment. Each month you sink deeper in debt because you're being charged interest on what you already owe and interest on the interest cost being added each month.

In desperation, you get a 2nd credit card and put the minimum monthly payment of the 1st credit card on your new card. But instead of slashing your spending you keep charging gargantuan bills on the 2nd card until it maxes out.

Now even more desperate, you get a 3rd credit card and repeat what you did with the first two cards. Eventually the credit card companies cut you off and force you to face the consequences of being what you have long been: BROKE. But until that time, everything appears to be normal.

And unlike the U.S. government, you can't just print money to postpone your day of reckoning. The U.S. is now printing so much money so fast that if you stood on the flat ground of normal money supply, you'd have to lift your head as high as possible to stare up at a MT. Everest size pile of dollars. This will make the collapse worse as hyper-inflation kicks in.

What can you do to protect yourself from your money becoming worthless?

1) Raise your voice against this incredible financial recklessness while you still can. Nearly everyone is silent, believing the lie the U.S. government must know what it is doing. And don't be fooled by banks supposedly paying back the government money they borrowed. They pay back the so-called TARP funds and then borrow again from another window of the Fed.

2) Become a jack of all trades or a specialist in a crucial function so that you have a better chance of holding on to your job. Your money will be losing its value but at least you'll still have an inflating paycheck and perhaps some medical benefits.

3) If you can afford it, buy income producing residential real estate in a market near you. Everyone has to live somewhere and as their paychecks inflate, so will what they pay you each month to live in your property.

4) If you can afford it, take a 30 year fixed rate mortgage on that income property. You'll get a one time free ride as your borrowing costs are fixed at today's low rates and you pay back the money using ever worthless dollars.

5) Buy some gold coins. Not collector's coins but one ounce or smaller coins. Their value will fluctuate up and down but over time measured in dollars it will rise sharply. As dollars become worthless, gold coins will become a common way to buy what you need including your groceries.

6) Start or buy a business you know well, in which people will need what you offer and will pay in ever inflating dollars and in gold. Property management, food sales, medical supplies and car repairs are fine examples.

7) Be generous to those in need for we are all brethren and we are all in this struggle together.

8) This American financial calamity will take down economies all over the world. Most of America is working class. When it loses all it worked for, there will be an explosion of anger against the U.S.'s corrupt government. What form of government will come in is any one's guess.

This was written not to scare you but to encourage you to protect yourself and to help others in need. And please remember, if enough of us raise our voices now to stop this reckless spending on bailouts, stimulus plans and weapons and wars, this calamity can be prevented.

Dick