On Mon, 11 Apr 2011 10:32:10 -0700 (PDT), Too_Many_Tools
wrote:

One trend I have seen though several economic cycles is that quality
tools are a better investment than gold with holding their value,
appreciating and ability to convert into cash when needed.

Your thoughts on this curious trend?

TMT
============

IMSHO what we are currently seeing is not a "normal"
economic cycle at all, but rather the partial end result of
several foundational economic changes, i.e. there is more
and "better" to come.

For example this appears to be a jobless "recovery," with
much of the so-called improvements resulting only from
dollar manipulation/creation by the FRB and massive
governmental deficits at all levels. The last bubbles, real
estate and stocks/derivatives popped when "financial
engineering" met reality and the "assets" had to be
revalued. When the US Dollar and governmental debt faces
the same test, i.e. "put up or shut up," another and far
more serious collapse will occur, with no one available [or
willing] to bail us out, even in the short term.

Thus while tools of all kinds may be valuable, both for use
and trade, a reasonable supply of firearms and ammunition
will be required to retain the tools, food, fuel, and other
emergency supplies, precious metals and trade goods you may
accumulate. As is generally the case, the most likely
thieves are the government at all levels ala New Orleans
where they were stealing from each other [generators, fuel
supplies, radio transmission towers, etc.] in addition to
confiscating all the guns they could lay their hands on.


-- Unka George (George McDuffee)
...............................
The past is a foreign country;
they do things differently there.
L. P. Hartley (1895-1972), British author.
The Go-Between, Prologue (1953).