Schlagwort-Archive: saving is a virtue

It does not make sense

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to read the comments on price development at least for Gold. I tend to day it does not make sense at all to expect anything of worth from stock “experts”.

Can one talk about a down for gold if it’s moving just 0.5%? Well I think no. And what’s worse, this opinions must make your head spin. Ask yourself has anything changed
the last two days which really can have any big influence of the prices?

Well Greece will get more money, money that we don’t have and if the states want to give it away they just can do on one way. More debts. So again we see some new bonds in any form
and well these bonds may get bought. At least not from me but that’s unimportant. Some banks probably will add some “risk-free” bonds of states to their bad debts of states. We have not heard of a bigger QE or the like and so not much has changed really. And indeed the prices just floats around a bit. That’s it.

And still you can read “cut back” for gold, the other day it’s gold on the raise and the explanations are not even a thing worth laughing. So just ignore it and ask yourself a few question. Do you think money printing does matter? Do you think the debt crisis was solved at least a bit? Do you expect the states doing something or nothing. That are the base questions.

I for my part have answered the questions this way. Money printing does matter it inflates the money base and will lead sooner or later to devaluation of the currencies. So if you want to save your money somehow you probably are not doing much wrong with some precious metals. It was nothing solved also. The debts are still raised and the stupidity of believing one could fill one while digged by debt with other debt is as insane as can be. However what I don’t know will the people consume much less? I’m sure the privates people will I do not expect anything like saving from states. They will raise the taxes for their endless appetite. for money. So will the bankrupt distort the currencies immediately or later? We simply do no know. But we do know Gold will always have some price, it scarce and people know that gold is money. So still some precious metals are a good idea. Now will states stop interventions? No they will not, they will extend the “control” (well as I wrote yesterday or so, this is just the imagination of control, states can not control much theses days) The sheer amount of debts is devastating. So what will happen I can not imagine a sane approach. So I just think the money printing will get on and so I’m back to “the case for gold”.

I’m quite sure they will consider making private gold holdings illegal again. But don’t think this will happen world-wide and still in this case I have at least some “confidence” that the highest courts will rule out the expropriation. That may just be wishful thinking but it’s the only chance we have. So having gold in your own country and abroad is proably one of the better and more intelligent things to do and have. And if you see it that way there is no excuse not having at least some gold. I have take my share of it, and I speculate that I’m right on this. Well I base my confidence on the work of the economists of the austrian school. And I think this is the safest bet you can have. Nobody else has pointed out the maniac behavior of the states and all they told and written has come true. That’s now true for more than 100 years, and as long as man has to do economics, this will not change. Yes agreed they are not explicit pro Gold but they do know Gold has worked as money and there’s not reason that is should not in the future… So do you want money? Take gold or other precious or not so precious metals.

Lessons

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to be taught and (re)learned.

I was very harsh to you US-citizens among my readers ( I guess a few of them may have stumbled upon this blog, and maybe one or two are reading it on a regular base). Now it’s getting a bit less harsh, but nevertheless it may still hurt.

So here we go: “Get rid of you debts”. Does this sound not that bad? Well I’ve some really bad news for you. The USA is even worse than at least Italy, Germany, Spain in regard to savings. I do not even know if it’s at the top of the bad countries. Why? Well you do not save. Yes it’s true you even had have a negative saving rate (which just means, you’re living way beyond your means) . One can blame Germans for stupidity also and if you write/say they are believers (in states) you hit the nail on the head (is that used in english?). It’s true we are guilty of that (at least it seems over three quarters of the Germans) BUT Germans do save. Saving is still a virtue. And we do not save as much as one could hope for. But we do save between 10 -15 of our income (on average)

I know some of you do save. I guess most of the readers do because a socialist hardly will read any entry here. So you are probably taught or grown with the austrian economics. And from there and self learning you know. That savings are the base for sound growth. Nothing will change that and the Fed can print money as mad. It can distort the prices for money to the max (as it currently does)
but it will not help grows on debt is a fire burning hot and fast and never will be cozy. You know if are near you may get burned too. But saved money and then investes is like a cozy fire, which keeps you warm even in the case it’s getting cold out there. So this is what most of the Americans have to (re)learn. The re is justified because to the time before the FED it was the way of live to keep to the saying. “A penny saved is an earned penny” and that is true.

For any of your with debts for private things I suggest you have a look at “Credit card nation” and well the lesson you hopefully will learn (if not, well bad luck for you) is get rid of your debts. Nothing does more to your freedom. A life without debt is a “free” live, the live of a debtor is mostly a slaved live. You may think you’re in control, but that’s just wishful thinking.

Do an internet search for living without debt and read the stories you find. Here are examples http://www.astoryofdebt.com/ , http://www.milliondollarjourney.com/how-to-get-out-of-debt-our-story.htm,
http://rowdykittens.com/about/our-downsizing-story/ and many more

I’m not an example of your way of life. I do not like socializing. In fact too many men at one place are hell for me (but that’s another story). Anyway I live it without personal debt and you can bet I will not give in to the singing of the sirens of “buy now, pay later”. Never in my hole life did I buy anything on credit and I want to keep that track. Debt is another word of not owning yourself and if there’s one nightmare for me it is getting dependent on transfer payments from wherever. I had luck my parents were clever enough not to spend all their money and well I guess my children may have some kind of luck also because I’m not spending all my money also. So they will have a starting with assets. I just can’t do more for them. In the end they have to live their live. I just can try to teach them to live in honesty and upright. That’s not possible while living in debt. Living in debt means owning someones else parts of your live. The higher the debt the more you live for the debtors. That’s the opposite of freedom. So think about it and take or leave my personal advice.