Take a look a this article cotton posted on a another thread.
http://www.321gold.com/editorials/willie/willie122707.html
http://www.321gold.com/editorials/willie/willie122707.html
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I too have invisioned many of the same ideas the author of this article has conveyed I on the other hand was not able to rationalize the method in which it would take place. So many thoughs and quotes jump to mind following reading this article such as feed a man a fish and he eats for a day, teach a man to fish and eats eats forever...instead of fish it's money. If even half of the predictions made in the article come to fruition the only thing that can be blamed for it is greed, primarily coporate greed but also individual greed. All to often people don't recognize that every dollar bill (or coin in Canada) has to be backed by something tangible ie.gold, land, oil and yes even wheat. Over the last five years we've seen an explosive increase in both wages and the cost of goods. The real kicker is that the everyday consumer is, well, basicaly stupid! You give them an extra dollar and they think they can spend two. This drives spending and gives money hungry companies the idea they can charge more, slightly increasing wages resulting in another in another unearned dollars being spent and so on and so forth. Then you throw in banks who have the short sighted vision that if you give people the illusion that they can spend is the best way to esure that they ask for more money to spend, taking their cut all the way. So what are you left with? Billions of dollars of "wealth" that exists soley on paper and nothing tangible to back it up with. After all, a house is not worth $600,000, a home is, and when it's crunch time and when it strikes home that a dollar bill is not worth it's weight in tangible product that value of "home" suddenly becomes hard to sell. That leaves us with one N. America's largest "wealth" sources worth nothing at all and the foolish people left with nothing tangible to pay their, now, liablities with, leaving banks, wich drive investing in buisness with nothing invest. What does this leave us with? Basicaly it's capitalism imploding on itself and a hard reboot of the entire system. Is this a bad thing? For millions of people it is, the greedy ones that were givin a dollar without regard to what that dollar actualy was worth. But for many with a keen buisness sense and a good understanding of economics/politics they will leverage the value money, not unlike the banks, except on tangible investments. After all having more money isn't the only way to gain wealth, sometimes having the same amount of money while others have less is just as effective.
After spending the last two month in uder confusion on where to focus my resources I find it comforting to see that someone with alot more training and experiences agree with my ideas. I see a power shifting back from big buisness to consumers, as ther will be far less of them and a realization of the value of nesecities by consumers. For far too long the western world has taken things like food for granted, I see a shift in this beleif, no longer will spending be on fun first, food second. My thoughts are that the remaining investors will view tangibles this was as well, driving up the value of raw goods and natural resources. No doubt what happens in the U.S. will eventualy effect Canada but I'm not affraid. Why? Because I paid attention, learnt and understood what a debt to equity, solvency and liquidity ratios were and how down the line the would affect my true wealth. It's just too bad that the vast majority, including buisness, didn't do the same -
I find it amusing that even though everyone is arguing a different point, yet everyone is still saying the same thing...Natural resources and precious metals are the way to go due to an unstable finacial/political world. On that note I think if you are mortgaged to the hilt on residential property I would be dumping it by next October, and reinvesting 18 months from that time. A correction is near. Alot of excitment is near.Comment
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