Ignoramus4253 wrote:
On 2010-12-24, Karl Townsend wrote:
Richard pretty well sums up my view of our situation.

I'm near retirement and have a fairly good amount of savings. But I
feel paralyzed as to where to put it. I've lost all confidence in the
stock market. I'm told bonds are over bought and will collapse when
interest rates take off. I've got too much hid under the mattress and
more guns, gold, and machine tools than I should have. I'd rather not
spend my final decade or so on this planet in total poverty.

What should a prudent small guy do?


Karl, I have most of my money (besides the house, of course) in
stocks. I have no idea what they will do next, but their earnings
yield is much more favorable than bond yields.

...

I have no idea what gold will do, but definitely count me out of that
party.

i


I could be wrong, but I don't think that was the question Karl was asking.

He seems to be in good shape as far as pieces of green paper go.

I suspect the question he was asking, the question we should ALL be asking
is - how to keep from losing value.

Or what will be valuable when green isn't?



In 1988 my ex (C, a chemistry professor) and I visited Tallinn (Estonia)
(I've probably mentioned that before).

One of the things that stands out in my memory was something that happened
in Tallinn in a "coffee shop" where my friend, Ants, took us for coffee and
brandy after a tour of the "old city".

Beautiful place, by the way...

It was kind of an artsy place - a lot of beatnik looking people sitting around
smoking Slavic cigarettes and listening to old American Jazz.
Thelonious Monk - in Russia?!!? Far out!

While we were talking and sipping a very good cognac one of the more
artistically inclined denizens drew a portrait of yours truly! It was on
newsprint - about 3' x 4' and while in purple pastel, it was otherwise very good
likeness.

When he presented it to me, I told Ants that I guessed the gratuity should be
in proportion to my ego? Ants smiled and nodded, so I gave the kid a dollar.

I'll tell you truly, I was not prepared for the response!
Certainly not for a lousy dollar!

When all the bowing and scraping an the kissing of hands (!) was over, Ants
explained to me that that one dollar bill would feed the fellow's family for
several weeks. Hard currency verses Rubles...

At the time, the OFFICIAL exchange rate was tied to the English Pound -
$1.65 per Pound, so $1.65 per Rubel (now 0.0328 US dollars).

But common Rubles don't buy much in Russia. Nor anywhere else.

THAT'S where we are headed, my friends.
That's the great abyss.
Our valuable Greenbacks turning into Monopoly money!

So the real question is - what will the "hard currency" of the future be?

Yen? Yuan? Pesos??? Or toilet paper and Tampons????

Considering that ob Tampons are now out of production and going for nearly
$40 a box... well....

Like I said before, Karl, I have no clue.
(nor do I believe anyone else does either!)


--

Richard Lamb
email me:
web site: www.home.earthlink.net/~cavelamb