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IGNORE…’prices’ – THINK…’purchasing power’ !

April 10, 2013

Given the nature of today’s manipulated electronic markets, now is the time to rethink your philosophy of investing/saving. Today’s ‘prices’ are mostly meaningless in the longer term for your ‘store of value’ funds. The concept of ‘store of value’ is what I focus upon when I think about preserving my savings. All digital currencies (such as Bitcoin, the $, Yen, Pound, Euro, etc.) are subject to our Political and Banking Authorities (and their manipulating schemes and machinations). To create a real ‘store of value’ for the longer term (the transition period after the soon coming crash/collapse) I would focus upon the concept of ‘purchasing power’. In other words: WHAT would my ‘store of value’ funds (when needed down the road) PURCHASE when I need to LIQUIDATE.

Today’s ‘prices’ of stocks, commodities, bonds, and derivatives are mere products of real-time emotion and subjective imagination. Prices today are derived in the VIRTUAL electronic markets and these ‘prices’ are MOSTLY manipulated and derived via mathematical ALGORITHMS…formulae programmed into computer platforms for the purpose of maximizing $ (computer digits) in the now (real-time). Sound fundamentals and real economic VALUE is ignored…while emotion and prior programmed mathematical formulae determine our ‘prices’. This type of market is impossible to predict and/or understand with logic and reason. What is needed today is WISDOM and sound JUDGMENT for the longer term.

The concept of ‘purchasing power’ describes what I can purchase (goods and services for) when I need to liquidate my savings (my ‘store of value’). So what are some sound products which will retain ‘store of value’ over this difficult transition period which is emerging? What has HISTORY revealed about human nature and money? My wisdom, understanding, and judgment says BUY historical money units that have proven themselves over our long human history. What are historical money units? Would you believe that these are GOLD and SILVER (coins, bars, and mining shares). One ounce coins are your BEST ‘store of value’ for this coming market crash, hyper-deflationary collapse, and a rather long transition period into a NEW world economy.

Yes, the ‘price’ of your gold and silver coins could fluctuate in ‘price/value’ from day-to-day…but this is mostly meaningless. What wisdom says is ‘focus’ on PURCHASING POWER (when needed). What can I liquidate these coins for in terms of goods and services when needed (down the road)! Isn’t ‘purchasing power’ (when needed) the prime concept for your longer-term savings (store of value)? My goal for the coming difficult transition period is to use my savings as a ‘store of value’ which then can be transferred into ‘purchasing power’ when I need my money. What else is sound wisdom?

For immediate real-time money transactions you may want some paper ‘legal tender’ dollars (real paper) and you can also speculate with those digital funds (those computer screen $$$) which you do not NEED as a ‘store of value’. Speculation is all we can do today as all our markets are ‘rigged’ and ‘manipulated’. The important thing to understand is that today’s dollar is a fiction and a fantasy (it has no tangible existence within Space/Time). Bernanke and his group (the FOMC) will continue to ‘rig’ and ‘manipulate’ the real-time markets based on their personal goals and interests. These official goals and interests are unlikely to be your goals and interests! What I want is freedom and flexibility during the difficult transition period that is emerging. I see no better option than a ‘store of value’ based on the concept of ‘purchasing power’ (when needed).

If you dislike silver coins and gold coins as your ‘store of value’ you might consider other alternatives that might work in your local market. Items like Jack Daniels Black, Absolute Vodka, Artworks, Real Estate (free and clear), and Farm Land (owned free and clear). I’m sure you can think up many additional items which might work in your local area. Anyway, our current ‘rigged’ and ‘manipulated’ markets are not representative of anything real going forward. The laws of ‘legal tender’ are most likely to continue during our transition period. This means that whatever people accept as ‘legal tender’ for other goods and services is a viable medium for this period. Enjoy and stay alert!  I am:

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