I have a friend that is a financial advisor and stock broker in the NYC area. I actually have a few of them, but last evening while we were out to dinner in NYC, he mentioned a couple of his predictions for our economy in the not to distant future. I logged them in my memory bank, and we are going to sit down and discuss it in more detail this week. The VERY high level is that he predicts a couple of things. He predicts that gold and silver are going to crash and be worthless, that commodities are going to go through the roof (become VERY expensive) and he is also predicting a period of hyperinflation and the dollar being close to worthless. We didn’t talk more about it at that point, but I am going to sit down with him and discuss what his thoughts are. Following the conversation, I will write a post regarding our discussion.
This particularly interest me, because I have been looking at purchasing some silver, but now before I do I want to learn more about my friends frame of mind.
I just don’t see gold and silver becoming “worthless”. Dropping a lot, perhaps. But not worthless. The reality is that people and institutions sell one investment when there is something better to get into.
Stocks, bonds, real estate, currencies — none are doing well or are reliable.
A lot of people — especially very rich people (and I mean uber-super-duper rich) are looking to preserve their wealth. Stocks, bonds, real estate, and cash just aren’t going to do it in this economy. But gold and silver will, at least better than those others.
And like I’ve said many times before: The U.S. may spin down the drain in the next 2–3 years but not the rest of the world (not as much as least). The rich know there will be a market for their gold and silver somewhere in the world.
But I do agree the commodities — wheat and grains, meat, oil and gas — will sky rocket.
I fear a FAMINE in America. Yes, FAMINE. This year Russia had a MAJOR wheat crop failure due to a record drought. So bad they suspended their wheat exports because they didn’t have enough for domestic consumption as well as export so they chose domestic consuption. I applaud the decision which no doubt hurt the Russia enconomy. But food before economics, right? However, I fear if similar happened here for whatever reason our political leaders, in particular the current administration but not necessarily them only, would NOT put the best interests of the American people first (i.e. securing food for starving Americans).
Every wonder what it must have been like to live at the fall of Rome? Stick around a few more years and see… 🙁
Master Po, I am in agreement with a lot of what you are saying, which is why I plan on sitting down with him and having a deeper discussion about this, and then do a bit more research… With all the doom & gloom talk, I want to chat with someone that is dealing with those that have the money and learn more about the types of conversations that he is having with his clients, etc…
I suspect a great many ubder-super-duper rich are making plans to transfer as much of their wealth out of the U.S. and move themselves and families out too. For the rest of us that isn’t an option.
I will be very interested to read more about your conversations.
Looking forward to more as well.
I think the US will be the last to go down the terlet. The EU block is going to go first as their finances are even worse than ours.
I think commodities will be a good bet, and I don’t see how gold and silver will go to zero, but I’m not an expert either so who knows.
If you read abut the great depression, the government under FDR had farmers kill livestock and destroy grain stores to keep prices artificially high. This benefited the farmers, but not the people waiting on food lines.
This is still don’t today, where surplus grain is destroyed or ‘donated’ overseas. Keeps the price up but doesn’t do much to alleviate hunger — even in Africa.
So, I think a food supply crisis can be averted, (barring a massive crop failure) if the central planners just stayed out if the food business.