| Jerry Brown will fix this right up |
 cuzzin ricky |
Thursday, November 18, 2010
6 comments:
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Anonymous said...
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Will it end Commiefornia's nanny state wasteland? Don't bet your bong!
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11/18/10, 1:13 PM
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toadold said...
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Like who didn't see this one comming. There are all kinds of state financial instruments that are going down in this debacle. Watch the market for tax lien sales start to dry up, and watch banks who played in that market get burned. Yeah you bought it for 10 cents on the dollar but nobody will want to buy California realestate even at that price.
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11/18/10, 2:34 PM
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Anonymous said...
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Have to say, my hatred for the socialist republic of cali aside, this shakes the very foundation of my belief system. I've done better than most in the investment game. Mostly because I never rode my moderate gains down with "irrational exuberance". The ultimate goal for me is to go fully into a double tax free muni portfolio and live tax free to a large extent. Brother and sisters, if that no longer exists, all bets are off. We will live in a monopoly game run by regional dictators. I predict that the next crushing wave to really hit our nation will be the loss of long established retirements. We will then pray that we have it as good as the Japs did after '91.
-Anymouse -
11/18/10, 3:23 PM
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Anonymous said...
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I'm just glad that I know how to farm, and know that I wouldn't mind that life a bit.
Casca -
11/19/10, 8:01 AM
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Anonymous said...
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I invested US $60,000 in bar silver last year; it is now worth close to $100K and is going higher as we speak. Silver is $27.32 per ounce right now, and should be closer to $100 per ounce based on historical average gold/silver ratios of 5-20% with the overall average about 1-16.
But the market is being manipulated both larger banks who stand to lose money if silver gets out of hand the way gold has, and by govts who want to keep the price low as silver is a commodity used in electrical and computer applications--about 300 million ozs are used up every year, as opposed to that used in jewelry, silverware, and investments. In 2009 just over 600 million ounces were used overall. The recent uptick in silver indicates that these manipulations are far less effective than before, the price took a very large jump when news of the QE2 came out; banks released huge amounts and profit takers also sold much, yet the price dropped only about $3 over a period of 5 days and is now within a dollar of it's highest closing. In 2008 a smaller release dumped the price of silver down below $10 and kept it there for over a year.
I am considering playing the paper silver markets as I now have a pretty good idea of how they work, as a test I bought 16 oz earlier this week and am now about $32. to the good. This is actual gambling, it is inherently manipulated, but is also "the only game in town." Unlike Vegas, however, it is very possible for a prepared player to win big.
My point is not to brag, enjoyable as it might be, but to say that in the long run, all fiat money will end up worthless, and with it the promise of retirement funds etc., as the citizens of the Weimar Republic found in the 1930's. The Fed's effect is to run an inflation of about 1% every year (whatever the original intent was, the inflation is the actual effect) and after 80 years, the paper dollar is worth about 5% of it's 1930 value, having lost about 95% of it's value.
I am not counting on social security to be there for me in 10 years; if it is the value will not be what it is now. Mathematically, it can't be. Also, last year one of Obama's flunkys sent up a trial balloon about "maybe""combining"--confiscating-- 401K's and annuities, which sank without a trace except in my memory.
The advice I am giving my family is to use loose cash to buy something of enduring value--in my mother's case, the new car she has been needing. Blue chip stocks will lose some value but probably bounce back, however, all stocks are overbought now. I am prepared for the Road Warrior scenario, but don't actually expect it, at least out here in the Redlands. What happens in the inner city may not be pretty at all. I do expect the govt to maintain low food prices, as food riots will be THE Road Warrior signal. Power will HAVE to be maintained or the northeastern voters will freeze to death in the winter--not necessarily such a bad outcome in my mind, but dead voters will be something of a problem. Maybe not, though, ask in any graveyard in Chicago how they voted. But the cities may not be such good places to live as police, medical, a sanitation services are cut.
Hopefully the new Republican House can cut some spending, but I believe it will not come nearly fast enough. Pelosi and Reid will only wake up when their motorcades are attacked by cannibal gangs.
Anyway, sorry for the length. I have to give a speech on this subject next week, and am pretty voluable right now. -
11/19/10, 2:01 PM
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Rodger the Real King of France said...
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A nice post, length be damned.
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11/19/10, 8:10 PM
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