There are many doom and gloom scenarios about the breakdown of economic society.  I recently read a great book on one that described what would happen if there was a high altitude nuclear event.  This would cause what is known as an Electromagnetic Pulse Event.

So what it would that do?  It would disrupt electrical circuits in an area about 1000 miles wide.  And because it would fry much of our electrical transmission system, and the system is so fragile, it could take as long as ten years to get society back up to speed – at least.  Silver coins would probably become the currency de jour in a scenario like this.

And there are the scenes where we are hit with a large meteorite, or a massive volcano eruption in Yellowstone national park that would be even worse.  These all make for exciting reading – if you are into that kind of thing.  But they are not likely in our lifetimes.  So much for exciting disasters.

A more likely survival scenario, although not nearly so dramatic, is inflation.  It is slow and silent and insidious.  But it is a very real threat to your financial health.  And silver could well be a safety factor for you here.

I’m convinced most people don’t really understand inflation, nor do they really know what causes it and how serious it is.

People see inflation as prices rising over time.  And indeed, this is how it looks.  For example, when I first started driving years ago in 1966, the price of gas was $.25 a gallon.  Today the price is around $4.00 a gallon.  That’s inflation.  Interestingly, that a gallon of gasoline in 1966 could have been bought with a 1965 silver quarter.  And today, that same gallon of gasoline can be bought for that same 1965 silver quarter.  Because the price of silver has gone up the same as inflation.  So in silver terms, the price of gasoline has not risen at all.

That’s the power of the protection of silver against inflation.

And the likelihood of inflation getting worse in the future is virtually assured.  Because the government keeps spending more money than it takes in as revenues.  Somehow it has to pay the difference.  It does this by printing more dollars.  Which reduces their value.  Which means you have to pay more of them to buy the same thing.

It’s like someone watering down the scotch in a bottle.  Or here’s a better example.

Let’s say you have $1000 in your checking account.  But you have spent wildly and now owe $10,000.  So you just write checks worth $10,000 to pay off all of your debts (don’t try this at home, folks, you’ll go to jail).

So are your checks worthless?  Well, no, not exactly.  Your checks are worth ten cents on the dollar (your $1000 divided into the $10,000 you paid out).  So people holding your checks – in our theoretical world, would have to spend ten times as many of them to buy the same amount of goods.  To them, in terms of your checks, prices would have gone up ten times.  Now that’s inflation.

Incredibly, this is exactly what the Federal Reserve, in cahoots with the Treasury, is doing.  They just keep writing more checks – the same as printing more dollars.  They create money out of thin air – not backed by anything of value.

~~~~~

I remember reading about this for the first time as a college student at Drury College in Springfield, Missouri.  I can still picture it in my mind; I was sitting in the kitchen in a little stone house I was renting, studying about the Federal Reserve in my textbook, The American Business Enterprise. 

I read this thing about the Federal Reserve creating money out of thin air over and over.  I was sure I was missing something.  Eventually I came to the conclusion it was true, but I am incredulous to this day that any rational society would permit this to happen.  We have paid a horrible price for it.  The dollar has lost 90% in value since then.

~~~~~

So your savings in dollars that you are creating today are going to buy less and less goods in the future.  Because the money is going broke.

But those savings you put into silver coins, in all likelihood, will keep going up as fast as the government is diluting the U.S. dollars.  Because the government can keep on printing dollars.  But it can’t create silver.  So the dollars go down in value.  But you silver, in U. S. dollars, goes up.

This is why it makes sense to invest some of your money in silver.  It will at least keep you even with inflation.

So all exciting doomsday scenarios aside, this is the more likely slow, creeping disaster you should be focused on preparing for.  And silver coins help you do that.

To your health and prosperity – John

A More Likely Silver Survival Scenario

There are many doom and gloom scenarios about the breakdown of economic society.  I recently read a great book on one that described what would happen if there was a high altitude nuclear event.  This would cause what is known as an Electromagnetic Pulse Event.

So what it would that do?  It would disrupt electrical circuits in an area about 1000 miles wide.  And because it would fry much of our electrical transmission system, and the system is so fragile, it could take as long as ten years to get society back up to speed – at least.  Silver coins would probably become the currency de jour in a scenario like this.

And there are the scenes where we are hit with a large meteorite, or a massive volcano eruption in Yellowstone national park that would be even worse.  These all make for exciting reading – if you are into that kind of thing.  But they are not likely in our lifetimes.  So much for exciting disasters.

A more likely survival scenario, although not nearly so dramatic, is inflation.  It is slow and silent and insidious.  But it is a very real threat to your financial health.  And silver could well be a safety factor for you here.

I’m convinced most people don’t really understand inflation, nor do they really know what causes it and how serious it is.

People see inflation as prices rising over time.  And indeed, this is how it looks.  For example, when I first started driving years ago in 1966, the price of gas was $.25 a gallon.  Today the price is around $4.00 a gallon.  That’s inflation.  Interestingly, that a gallon of gasoline in 1966 could have been bought with a 1965 silver quarter.  And today, that same gallon of gasoline can be bought for that same 1965 silver quarter.  Because the price of silver has gone up the same as inflation.  So in silver terms, the price of gasoline has not risen at all.

That’s the power of the protection of silver against inflation.

And the likelihood of inflation getting worse in the future is virtually assured.  Because the government keeps spending more money than it takes in as revenues.  Somehow it has to pay the difference.  It does this by printing more dollars.  Which reduces their value.  Which means you have to pay more of them to buy the same thing.

It’s like someone watering down the scotch in a bottle.  Or here’s a better example.

Let’s say you have $1000 in your checking account.  But you have spent wildly and now owe $10,000.  So you just write checks worth $10,000 to pay off all of your debts (don’t try this at home, folks, you’ll go to jail). 

So are your checks worthless?  Well, no, not exactly.  Your checks are worth ten cents on the dollar – your $1000 divided into the $10,000 you paid out).  So people holding your checks – in our theoretical world, would have to spend ten times as many of them to buy the same amount of goods.  To them, in terms of your checks, prices would have gone up ten times.  Now that’s inflation.

Incredibly, this is exactly what the Federal Reserve, in cahoots with the Treasury, is doing.  They just keep writing more checks – the same as printing more dollars.  They create money out of thin air – not backed by anything of value.

I remember reading about this for the first time as a college student at Drury College in Springfield, Missouri.  I can still picture it in my mind; I was sitting in the kitchen a little stone house I was renting, studying about the Federal Reserve in my textbook, The American Business Enterprise. 

I read this thing about the Federal Reserve creating money out of thin air over and over.  I was sure I was missing something.  Eventually I came to the conclusion it was true, but I am incredulous to this day that any rational society would permit this to happen.  We have paid a horrible price for it.  The dollar has lost 90% in value since then.

So your savings in dollars that you are creating today are going to buy less and less goods in the future.  Because the money is going broke.

But those savings you put into silver coins, in all likelihood, will keep going up as fast as the government is diluting the U.S. dollars.  Because the government can keep on printing dollars.  But it can’t create silver.  So the dollars go down in value.  But you silver, in U/S. dollars, goes up.

This is why it makes sense to invest some of your money in silver.  It will at least keep you even with inflation.

So all exciting doomsday scenarios aside, this is the more likely slow, creeping disaster you should be focused on preparing for.  And silver coins help you do that.

To your health and prosperity – John