I just sent my family the following email:
If you’ve been following the news, you may have heard that:
- The Federal Reserve just cut the overnight loan rate to .25 percent. Gold prices immediately jumped to $847/oz. (Last week, I bought gold at $775). We haven’t seen rates this low for over 50 years.
- The government has given away over 8,000,000,000,000 dollars of “free” money in the last three months.
- In the last 5 years, the dollar has lost more than half its value relative to gold.
All evidence points towards the fact that the U.S. government is rapidly devaluing your savings, and a currency collapse followed by hyperinflation like we recently saw in Iceland is all but inevitable. If you don’t want to lose your savings and investments in the coming economic collapse, you need to take action NOW.
Here is what you should be doing:
- Buy some gold and keep it in a safe place. I suggest http://www.kitco.com/ or eBay - you can get a good deal on 1oz gold bars. (Buy plain gold bullion, not the “collectible” stuff.)
- Don’t pay anything above the minimum payment on any loans or mortgages you have.
- It’s a good time to get a new loan. I would not suggest taking on new mortgages, as I expect housing prices to collapse further.
- The stock market may lose up to 50% of its value in the next year. Still, investing in the S&P 500 is a good hedge against inflation. You can also invest in metal & mining index funds.
- Stock up on supplies, especially durable goods.
- Minimize your holdings of inflation-prone assets, like cash, bonds, and government securities.
When you’re done, you should have a minimum of cash and cash-like investments, and plenty of material assets you can sell or barter in an emergency. Also, consider getting a firearm for self-defense – expect crime to rise dramatically when the economy collapses.
You’ve been warned.