Hi there dudes, and welcome to another week in this crazy world we live in. While it may appear to the casual reader of our blog that all I like to do is smoke weed, party, and spend time with beautiful, exotic (and fit) foreign women, the successful execution of the Charlie lifestyle is contingent on some serious planning and a very pragmatic outlook of the world. I’ve put a lot of effort into making my life exactly the kind of life that I want to live and I want to maintain my standard of living and happiness even if external circumstances beyond my control change.
And changing they are. The more I pay attention to what is happening to the world, the more I am convinced that a major shift has already begun which will drastically change the world as we know it and many many lives will be ruined as a result. A financial tsunami is coming soon to the world that will wipe out fortunes, destroy governments, impoverish billions, and eventually lead to war as the global elites clutch at every available straw to try to maintain power and avoid the inevitable effects of their own evil, greedy, irresponsible, and retarded actions.
I’m no activist. My personal view is that nothing can be done about this by you or me, through politics or any other method. The dominoes are already falling and the people running the world have let things slip beyond their control. So now the question for the single dude is what can one do as an individual to protect oneself from what’s coming?
That’s not an easy question to answer as everyone’s individual circumstances vary. The best answer I can give is a basic one: Pay attention, be prepared, and stay flexible. Be ready to react before it’s too late. For some people, that means living in a survival cabin in Wyoming surrounded by guns and canned beans. Others are looking for foreign passports and safe corners of the world to retreat to. I’m not quite at that stage yet, but I keep an alert eye on world and national developments and am in the process of streamlining and simplifying my life so I’m as ready as possible to deal with different scenarios. As they say, he who panics first panics best.
The number one thing I have been doing is getting my financial house in order, and the number one thing involved in that has been pulling my money out of my IRAs, brokerage accounts, etc, selling unnecessary possessions, and buying gold and silver. This is the point of this article and while everyone is in a different personal situation, I think everyone reading this article should be buying precious metals now. This is a one-size-fits-all move that really will be a good move for everyone.
In my regular life I have been going around proselytizing on this issue to my friends, family, and colleagues, and I’ve developed a little multi-point presentation on it that has actually started to become somewhat successful, and I’d like to share it with you, our loyal readers. So without further ado, here is Charlie’s Bullet Point Presentation on Why You, the Single Dude, Should Buy Precious Metals.
1. Metals are a hedge against inflation. The topic of inflation really deserves its own article, so I’ll keep this as brief as I can. The major governments of the world are in debt up to their eyeballs. Check out this world debt clock from the Economist. Anyone who can actually do 4th grade math (which apparently does not include our political leaders or central bankers) can see that there is no chance that this debt can be paid off, ever, especially considering that governments are borrowing money at a faster and faster rate. The United States, for example, continues at add 1.3 trillion dollars to its outstanding debt every year. On a budget of 3.5 trillion, that’s a 37% yearly deficit. The equivalent for an individual would be if you made $50,000 every year and every year spent $68,500. How long would that work out for you?
There are only 2 possible ways out for these world governments. Default outright on these debts or print up a shitload of money out of thin air and pay the debts off that way. That’s what’s happening, now, and as the debt continues to rise, the money creation will as well. This results in inflation. I know the US government says that inflation is steady and low right now, but they’re lying. Check out John Williams’ excellent site Shadowstats.com for non-criminally-lying versions of the inflation numbers and you’ll see what I mean.
Here’s a chart of the central banks’ of the world’s balance sheet growth since this latest round of wordwide money creation:
Inflation is disastrous to savers, people on fixed incomes, and poor people who are much more susceptible to changes in global food prices. And for you, the single dude, this inflation has the same effect as a thief who comes and steals money out of your bank account. As the value of the dollar goes down, the purchasing power of your nest egg goes with it. This is always what happens with currencies that are backed by nothing.
Gold and silver are your protection against inflation. There is a finite amount of those metals in the world and asshole politicians can not just create them out of thin air. An ounce of gold will still buy you what it buys today (or more, as I’ll explain later) years from now, when the Euro has gone the way of the dodo and the US dollar will be more valuable as toilet paper than as money.
2. Metals have no counterparty risk. Investing in regular paper investments is also very dangerous today because of the enormous fraud present in the financial sector. In my opinion, pretty much everyone running the world’s big financial institutions are complete criminals who will do whatever they can get away with to steal as much from the rest of us in the world. And since the government is 100% bought and sold by these asshats the amount of fraud that these guys can get away with is pretty much unlimited. Trust me, if Goldman Sachs can steal your money, they will. When the financial tsunami comes, unleashing the destructive power of quadrillions of credit and currency derivatives that nobody actually has the cash to pay for, the bankers will grab all they can, looting the store as they are burning it to the ground. Then you and all the regular investors will be just more screwed creditors in line at bankruptcy hearings. Good luck getting your money back then.
Every paper investment has a counterparty, in other words, someone who has promised you some asset in exchange for this piece of paper. If they go belly up, you lose. But gold and silver have no counterparty. They are the asset, and you can hold it in your hand, and insist it not be taken from you without the use of force. Now, that also may be coming in our New America, but in a later stage. Having the physical gold (please, please, please do not invest in paper gold certificates that are just as fraudulent as the rest of the system) puts you a big step ahead when the shit is hitting the fan. Gold quite simply is the only investment vehicle that has never defaulted on its creditors.
3. Precious metals have value independent of political or geographical distinctions. Whether or not the USA or the Eurozone continues to exist, your gold and silver will always have value. Try that with paper money from Weimar Germany, or Zimbabwe. If the Eurozone fails (which it will, very soon) that currency will be worthless, but gold bought today with those Euros will still be just as valuable, in every country in the world.
4. The fraudulent paper market for gold and silver means that metals are much cheaper than they should be. Just like every other investment category, the asshole bankers have created a totally criminal ponzi market for metals as well. Just trust them, they have gold in some vault somewhere and if you give them money, they will give you a piece of paper saying you own a bar of that gold in their vault. Riiight. Then they go sell paper rights to that same bar of gold to 100 other people. This has two results. First of all, it creates a whole lot more “investable” supply than actually exists in the real world, which according to my Econ 101 textbook drives down prices. As a result, it creates the situation where actual physical metal is worth much more than the paper version.
Stupidly, the metals dealers still sell physical metal quite close to the paper price. They are just interested in the spread between what people buy from and sell to them, and therefore you can today buy physical metal for much less that they would cost if the supply of gold and silver investments was the same as the actual amount of the metal that actually exists above ground in the world. You can imagine what will happen in a financial panic, when people lose their faith in the system and start asking for physical delivery in place of their paper certificates. Single dudes like you and me with physical gold in our possession will be in an extremely strong position.
5. There are significant tax advantages in metals. This loophole will be closed eventually, but nowadays I can walk into a coin shop, buy $9,999 of gold with cash, and walk out with my gold, no ID, no paperwork. If the price were to change I could walk back in and sell $9,999 of gold back to them, no ID, no paperwork. Not that I’m selling my gold, but one day I might. Now, of course, I am not recommending tax evasion. You owe it as a good citizen to give the money you busted your ass to earn to the government so they can spend it on bailing out Wall Street criminals and waging war all over the world. Please pay your taxes, dudes, it’s the right thing to do.
6. Another loophole is the difference between face value vs real value of gold and silver. For example, a 1 ounce US Gold Eagle has a face value of $50 but the gold is worth much more. This discrepancy might come in handy at some point if you were crossing an international border and didn’t feel filling out a bunch of paperwork about the more than $10K of cash you were carrying. At $1600 an ounce, $9000 of Gold Eagles would be worth $288K. Just saying, that might be useful at some point too.
7. Unlike gold, silver has an industrial value in addition to its monetary value. It is used for hundreds of uses in very small, virtually irreclaimable uses from electronics to photography, and is essentially being used up. Trust me, over the next 20 years, there is going to be more demand for gadgets in China and India and they will need the silver to make it. I personally believe that gold is a great way to protect your assets but silver for this and other reasons is a potential home run investment.
So there you have it, dudes, my bullet point presentation on metals. I hope I convinced at least one person to pull the trigger and cover their ass. It’s very easy to find good dealers and a cinch to order, you just make an order online, send them a check, wait a week or two, and then FedEx shows up with a box of shiny, real, inflation-proof, counterpary-free, portable, universal wealth. Or you could go to the local coin shop. Just check out the Better Business Bureau report on your dealer and make sure they are A+ rated (although the BBB ratings are becoming more and more meaningless daily… Goldline has one and you don’t want to buy from those assholes!).
If you’re convinced, don’t wait too long. The price of gold and silver have remained relatively stable of the last year, even as the ECB has added trillions to its balance sheet and the world financial situation has worsened significantly. There will be a day when there is no physical gold available at the paper price. Start covering your ass now.