Archive for April, 2009

April 29, 2009

Where we are going Finanically

Thomas G. Brown |

Let’s talk about the role for the Federal Reserve and it’s ability to create money out of nothing. Let’s not view them a entity which works to create monetary policy to protect the economy but more of counterfeiter who can pump out large sums of fake money. This fake money is then distributed to the folks at the top of the food chain. These folks can then take this new money which has increased the amount of purchasing power they have and spend it on capital goods they would otherwise no be able. As this group purchases goods and services the prices of said good and services increase. This has nothing to do with the owner of firms being greedy or shady but the fact is the product and service is becoming less available and more money is required to purchase these sane products. As the money makes it further and further into the monetary system the value of the dollar decreases as the price of goods and services increases. This is exactly the road we are heading down with the Government pumping out billions of dollars with the purpose if spending our way out of bad fiscal policies that started this slide form recession to full blow depression. Commodity, manufacturing, anything with true intrinsic value will have there prices skyrocket making there purchase hard if not impossible by most in the middle class.
This Will be worst than the great depression of the 1920’s and may last twice as long if the government decides to continue to manipulate accounting tricks (mark to market) in an effort to hide or do away all together the toxic assets they had so recklessly got involved in. My recommendation is get into tangible goods,(silver, gold, being the simplest ) sit on the side lines of the stock market while it goes through this bear of a time. I don’t see any value (5%) dividend and P/e ratios of 10-15 without this stocks seem over bought even at present rates.

Hope my rambling was more than me ranting on the failings of the market and brought some answers to those folks wondering what to do. As for getting started with gold and silver coins I recommend heading down to the State College Coin Shop off Atherton on the way to the Nitnnay Mall. His shop is up on the hill past Tubbies in the back of the Antique shop. The owner’s name is Dave Kreamer, he is open 10 am – 6 pm on Monday’s with appt made through calling 814.234.0849

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