Discussion

Robert,

With all of the printing that is taking place plus the Federal Reserve purchasing the bonds, That can only lead to a loss in the faith of the currency. Two things come to mind- Is the Fed purchasing because no one else will buy? or not buy quick enough? Secondly what will the world accept as the new currency? Gold, Silver, Euro's? or Something new?

Great Book Robert see you in May!

It's inevitable. I think that it is common sense. However, the U.S. is a powerful country. Most powerful countries have maintained thier dominance for up to 500 years. We only became more powerful than Europe in the 20th century when we took control of the seas and diliberatly created disruption between powers. No country has as much power as the U.S. We control every single sea lane. All potential powers that could have been a threat to the U.S. dominance have been disrupted. We have strategically pitted countries against one another. We are still in our infancy. So, I think that no country can expect to rise when our country is sinking. They will rise if we rise. Then when they have the power and the alliances to challenge U.S. power than we might need to go to war. No country has seen as much power as the U. S. and know country will for at least 100 years. Whatever happens we will still be the worlds superpower. And if you think China will threaten that think again. That country has so much inner political issues that challenging the U.S. would be suiside. That country will see its end soon.

I have been watching the markets and the turmoil as it has progressed over the past 18 months.
I have come to the conclusion that cash is king whilst we are sliding into depression, and will become trash as we see inflation kick in, which it will most likely do.
My take on it is that it should be used wisely to invest into assets at deep discount prices i.e. prime real estate, or stocks in fundamentally strong companies, i.e. utility co's, companies that provide our basic necesities for infrastructure, i.e. cable companies, pipeline companies etc. This should be done whilst we are heading down or at a bottom. Reasoning is simply you are buying assets at cheap prices.
When inflation finally kicks in (quantitive easing, printing money, loss of confidence in the value of money) these asset prices will rise rapidly, therefore the the value of your money will depreciate fast and what you can buy for your money will reduce.
Therefore you are protecting both on the downside and hedging on the upside.
On Tuesday UK CPI & RPI figures were reported, the two figures were contradictory. CPI goes down and RPI goes up.
To me this indicated that the value of your assets has reduced on one side and the cost of living has increased on the other side. A double whammy!!!!!!
Your Balance sheet has shown a drop in NET ASSETS, and your PL shows a drop in NET PROFITS.

Not only will cash be trash but all dollar based assets, like stocks, annuities, cd's, etc., will be trashed as well.
Rents and royalties will be at risk too because to keep up with rapid inflation, lessor's will be forced to constantly raise the payments (hard to do with long term leases) and lessee's will be evicted or forced to increase their revenues, which, in many cases will be impossible as unemployment increases and demands for goods and services drop. Trades and barter may become much more common.

The scenario of hyperinflation is akin to dropping a long chain off the side of a boat: the more chain that falls in the water the more rapidly it comes off the boat. Also the more likely it is to take down anyone holding onto it.

Arable land, moving off the grid, gold and silver will be our best friends.....TBC

In the present time, cash is king because all the assets are deflating in value but as we come out from this deflation 7 recession, we will be faced by hyperinflation. Therefore, it is better to benefit from the present forced liquidation by acquiring real assets as commodities (agricultural ,precious metals & oil) at the present depressed prices that are going to appreciate in the coming inflation.

The next depression will be the Greater Depression. Sadly even wors than the Great Depression. Case is TRASH and hyperinflation is our future. The dollar has no value since taken off the gold standard. Helicopter Ben has begun the helicopter drop recently and there is no end in sight.
It will be very disasterous. I am glad you are trying to get the word out as Peter Schiff has done in his book Crashproof which explains ways to protect ones self from the upcoming CRASH.

We are headed into an inflationary depression, just like Germany. Followed quite likely by hyperinflation, then complete bust (currency-wise). Eventually, real assets will have to soak up all of that fiat currency's presumed value. That is when those who have prepared experience lifelong WEALTH.

I think I infation type depression is coming. Anyway I am not afraid as a Zimbabwean. We have pulled through it for ten years now. The effects are devastating.
I had numerous life assurance policies which I taken as part of investment planning to use as collateral for loan applications. These have lapsed now becuase money lost value and I have lost my money and expected benefits. Some policies were said to change with inflation but that did not work out as infation rose exponential.
Salaries paid to people in Zim dollars became useless as the currency was rejected by the market. It meant working for nothing. The list is endless, the current government has fianally replaced the dollar with foreign currencies, US dollar, rand and pula.
The only way to survive this is develop an enterpreneur spirit, forget about job security and more importantly improve financial literacy. The expreience in the Zimbabwean depression made me to learn about this rich dad series of education.

I believe as of now cash is King, but as the new money enter our current economy it slowly becomes trash. I do believe people who have money now needs to be prepared for both depression in the US and depression in Germany. By doing so you keep a percentage of your money in physical gold and silver, another percentage in Oil and natural gas, and then keep a stock of dry goods in your home such as grains, bottle water, can goods, and watch your neighbors action closely, and do not speak about the wealth you have or accumulate. If you currently have assets that is producing a positive cash flow use that money to do the things I mentioned and continue educating yourself and increasing your financial IQ and become a Rich Dad Insider if your already not.