MONEY: Buy gold, euro collapse?
buy gold, euro – Money Week
http://www.moneyweek.com/file/3095/buy-gold-to-cash-in-on-unstable-euro.htm
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The euro, like any other paper currency, is an illusion. For a currency to work, people must suspend any belief that notes are worthless pieces of paper and have faith that these pieces of paper can be exchanged for valuable goods and services. That belief in turn rests on the faith that the value of paper money will be upheld by a government.
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And, we have this illusion here as well.
What happens when the nice Japanese workers stop sending us Toyotas for the little green pieces of paper? We really stuck it to them when they bought lots of US landmarks like Rockefeller Plaza (i.e.: home of radio city music all and the rockettes) last time.
We have seen hyper-inflation, stagflation, and the Japanese malaise. These are economic tsunamis destroying individual lives, nation states of varous sizes, and societies.
If it is truly a global economy … and I’m not sure that is so … consider that these economic epidemics often stop at the water’s edge … global outsourcing is coming home to roost as stuff is being brought back … then if the euro fiction falls, will the American version go with it? And, exactly what gets swept away with it?
So, if we are postulating the potential for a financial collapse, then what do we do about it. Like Y2K, it is easy to take some steps to prepare. There are two type of expenses in taking out “insurance”. We can divide the protective actions we are considering into (a) the things that are total losses (i.e., people who planned to hide out in rural retreats losing every thing spent on it) and (b) those things that can have other uses or are recoverable. To what extent the things we do make sense regardless of the financial weather.
What worked in the German hyper-inflation? What worked in the Carter stagflation? What worked in the Japanese malaise?
So we have some homework to do.
Reinke Faces Life 
10-06-06 It seems as though we are very close to a “day of reckoning”, here in the U.S. as well as globally. Many folks think that “having faith” is the same as having religion. I believe it is, if believing in what you’re doing is done religiously from the core of your belief system. This means of course that it is extremely difficult for a person “having faith”, to deviate from their core beliefs.
(1) Follow proven, good directions. (2) Practice what used to be common sense: (a) don’t borrow, work hard earn and pay. (b) Lend and give when appropriate. (c) Understand what “good” is, and choose accordingly. (3) Watch closely what is happening about you, small scale and large scale. plan accordingly. (4) Trust the source of your proven, good directions. (5) Love your fellow beings appropriately. I believe if we do these things that we will ALWAYS have the insights that we need to survive and thrive. The old standards of gold and silver seem very appropriate for these days.
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