The gold and silver recovery has been nice, but it's nothing compared to
what's happening.
If you haven't prepped.
Now, is really the time to do it because there may not be that much
time left.
The system was broken long before the pandemic.
What the pandemic did was it moved up the that brick wall, that we're
heading for moved it.
Towards us a little bit because we had to take on a lot of extra debt
during the pandemic and we broke a lot of small businesses.
So, the economy is not nearly as resilient as it was.
It's just got, you know, it's got a handful of gigantic companies
right now, and that's basically it and
That's not a healthy system.
So we're very unhealthy.
We're financially a mess, inflation is starting to rise and you know,
you can't we aren't going to go back to a normal world of 2% official
inflation, just because the pandemic is over on the contrary, as
people come back into the economy, demand, higher wages, and then
spend those wages.
We're likely to see an acceleration in at least wage inflation, which
is going to make things even worse.
You know, and what the short-term scary part of this story is that we
hit a point where people start to panic buy stuff.
In other words.
They see the necessities of life, going up dramatically and they
decide well, instead of buying just this month, stuff at Costco.
Let me buy the next year's.
Were, you know, I'll just load up the SUV with everything.
We're going to need for the next year.
Well, that pushes prices up even further which causes more people to
panic and you get this kind of runaway train of inflation, going where
it's a feedback loop that the
Cannot stop without raising interest rates to the point that they
bankrupt.
Basically, The Leverage speculating Community, which is to say
everybody who requires low interest rates to function financially,
that's almost everybody.
Now, you know, so you are going to be in a box and that kind of
runaway.
Inflation thing is, what might make it clear to everybody that there
is no fix because if the FED looks at 7 percent inflation with the
bullet, you know, that's heading.
Towards 10% and they don't act aggressively, which is to say they
don't raise interest rates up to above the inflation rate.
That's what you need to do.
You need, you need real interest rates that are positive, not just
slightly less - so, you know, seven percent inflation.
You need nine, or ten percent interest rates.
Well, that destroys the financial system.
So when people realize that those are our choices, then they're going
to start acting accordingly, which is to say they're going to start
panicking and a lot of different.
Actions, so what what makes sense for an individual is destructive for
society sometimes and we're going to see a lot of people acting that
way, you know, getting what they can right now because who knows at
the cost of much, much greater instability for society as a whole that
could be this year.
You know, that's the kind of thing that we're not far from.
So it could be a 2022 story.
I don't want to say that it's going to be because there's no way to
know that for a fact, but this is the, you know, has the feel of
something that could metastasize into.
That thing I just talked about the golden silver recovery has been
nice but it's nothing compared to what's happening.
The problem with precious metals is that you've got that potential big
drop out there when stocks tank, you know, and so you see, silver go
back down to 12 bucks, easy.
And you can see gold to go back down to 1400 or whatever very easily.
These things can happen in a flash crash, in the stock market, which
you know, the last few weeks in the stock market, have felt like the
Prelude to some kind of big.
Panic down.
So we could easily see that happen.
So if you want out, you know, you heard me saying there's urgency and
you went out and bought all your gold and silver right now.
You probably regret it.
So don't do that because I don't want, you know, a world full of
enemies out there that I cost a ton of money for but do understand
that that's the dynamic.
You know, we've got this big risk out there with gold and silver.
So keep some powder dry.
So you can you can pick some up at the bottom and this time around if
they do tag
Don't hold back.
You know, this is this is the time to back up the truck because the
FED cannot let interest rates go up much more than they are.
They cannot let the stock market tanked and they're going to have to
take steps to prevent that and gold and silver will probably respond
to it.
So, you know, be buying now, be stacking now, regularly, but be
prepared to buy more if they put it on sale for you, you know, if you
see 12 dollar silver.
I'm not gonna say mortgage your house, but I would be considering
mortgaging my house for something like that.
You know, it's one of those things where we missed a couple of those,
a lot of us have missed a couple of those episodes and this is the big
one.
So, you know, don't don't do any never invest any money in anything.
You can't afford to lose but with your excess Capital, you know, with
what you have, that's beyond your emergency fund and your, and the
money that you'll need for the next six months to live gold and
silver.
If they
Whacked will be a pretty good investment at that point.
Well, I mean, if you haven't prepped, Now is really the time to do it,
because there may not be that much time left.
I mean, the ideal solution would be to go back in time, 5 years and
start watching your podcast series, from the beginning.
And then just do what people said back then.
Because it's a little bit late, very possibly, to do it right in a, in
a rational, slow steady manner.
Now, you know, but I guess it's never too late to
start and one thing that you definitely want to do right now.
If you don't have a garden kindergarten, you know, maybe 50% food
self-sufficient by this time next year.
And that takes a lot of the pressure off of food inflation, right?
If you are, if you're growing vegetables, some of which you put away
for the winter, then it's not so traumatic to go to the grocery store
the farmers market because you've got most of it already, you know,
you've taken care of that if your finances are dollar Centric,
If you've got a big bank account with a lot of dollars in it and bond
funds and Bank stocks, you know, if you own JPMorgan Chase and and
Citigroup and Goldman Sachs right now sell those things.
Get out of his stocks right now and same thing with long-term bond
funds.
If if interest rates go up, that's the same thing as saying.
Bonds, go down because bonds and, and interest rates are just the
reciprocal of each other.
So in a rising interest rate World, say the
Ed tries to fight inflation by raising interest rates, and the
markets, react to inflation by raising long-term interest rates, your
bond funds, get crushed.
So, get out of those things too.
And, and again, I'm not saying that that happens in the next six
months, so you could get out of your bond funds and then wish for a
little while that you haven't yet, but, you know, it's better to be a
little too early than one minute too late in crises.
So the things that you should be doing what you should have been
really doing kind of steadily all along.
Maybe there's some more
urgency now to doing it but things like that and then you know, with
the rest of your investment Capital, make sure it's mostly in stuff
that is not affected by the dollar fluctuating like it's going to and
that would be stuff that has utility, you know, and ExxonMobil stock
something, you know, or some other energy-related stock, you may have
philosophical problems with oil companies, but they and things like
them will probably hold up pretty well in
A currency crisis, a rebel real estate house for sure, you know, if
you can buy farm land at this point, that's the the ultimate in the
hard asset and then, of course, you know, they should call you up and
buy some gold and silver coins.
And I think silver is probably more attractive right now, just because
it's it's gone up less than gold lately.
And silver.
Oz are sort of the they're sort of the twenty dollar bill of the post
Dollar World.
Whereas a go a gold coin, might be a gold ounce might be a
You know, the equivalent of a thousand dollar bill and more.
So twenty dollar bills are much more useful for most things.
So you probably want to ask you towards silver as you're doing your
stacking right now.
And also, you know, in the most extreme worst case scenario, the
government is going to confiscate a lot of assets including gold
because they did that already in 1930.
So we know it's possible and never confiscated silver and they can't
really do that.
Because Silver's
An industrial metal as well, as a monetary metal.
So skewed towards silver do, buy some gold to but that's the direction
you want to be going.
And you know here again it there is some urgency but you don't want to
Panic by anything really and that includes gold.
Silver real estate and energy stocks and things like that.
Just, you know, do it in a rational way.
I do it steadily but understand that you want to complete.
Our process in the intermediate term future instead of the indefinite
future, you know, pick a date when you're going to be done with this
and get there.