Merry Christmas from VA (a cautionary tale)

I'm up at the boat again this week.  The near term goal is to finish the upper helm and in fact the entire flybridge finished.  While I'm up here I have to interact with the locals.  Yesterday I met the owner of a good size local marina that is in a nice state of repair.  It has to be worth $3-$4 million.  These guys love Trump, and they rapidly moved the conversation to politics in order to see if I was from their herd or the opposing team.  Well, I led off with my view that Hillary was a career criminal and I asked what they liked about Trump.  The response shocked me even though it should not have.  The main thing was that "Trump has kept inflation down".

My G_d are we screwed or what?  Well to do business owners in VA actually think Trump controls inflation.  I asked if they knew where inflation comes from.  Immediately the mirth exited their faces and they answered truthfully that they did not.  So I told them that inflation was simply the watering down of the money supply, just like adding more water to the Kool-aide without adding more Kool-aide powder mix.  They seemed to get that.  And then I told them it was the federal reserve that controlled that, not the president and that the fed had been adding to M2 money supply at about 6.5 % per annum without any pause since well before even bush 2.

From there the smiles never returned to their faces.  After all, these people are not stupid, simply economically ignorant.  I then let them know that gold was money and silver too and that it would not go down when the true inflation was finally expressed in the economy.  None of them had any gold or silver.  All of them blindly trust government.  None of them suspect we are heading for a currency crisis.

Man this country is screwed.  If podunk rednecks don't get it then I don't know who does.  But I will say this:  the time to buy something is when it is completely undiscovered and out of favor.  Nobody thinks gold or silver are anything special right now besides "wack job extremists and conspiracy theorists".  But once the worm turns all of those who trust the system will be literally fighting each other to get into precious metals.

I say, start buying now and avoid much higher prices and shortages of a historic nature.  The global debt Ponzi cannot last forever and when it crashes it will most definitely affect everyone on the planet.  Some for the better (gold and silver owners) but most in a very bad way. Try not to get crushed when this giant shit show of lies, deceit and fraud topples over, will you?