Saturday, August 2, 2014

Nearing the tipping point?

Are we nearing the tipping point where all hell breaks loose on the economy and the way of life as we know it?  Seems like it.  With the many military conflicts brewing, the breakout of Ebola (and potential relocation of patients into the US), and the recent indicators of an economic downturn, yesterday's 300 point drop in the DOW and today's 90 point drop leads me to think we are very close to the edge.

Add to the above mentioned events is the quiet but intensive 'banking war' that is ongoing on between the BRICs and the dollar based countries.  As the dollar begins its slide as the world's reserve currency, so will the rise interest rates from the Feds.  If the interest rate rises, then all kind of bad things will happen, including defaults of US debts, credit default swaps imploding,  more taxes, and a definite return to a recession and even an economic collapse of the entire US economy.  From my limited viewpoint, events seem to be pointing to a perfect storm but exactly how and when the storm will hit is unknown - but it sure is close.  When it does hit, we may think back of these times as the 'good old days'.  

So what is the answer?  I don't really know for sure, but one thing that I am certain is that the only safe haven that has been solid for me has been gold.  I started buying gold when it was $600 an ounce back when I first started this blog and while it has gone up and down over the years, I can be sure that if sh*t hits the fan, my investment won't be worth zero.  I've been able to sleep peacefully over the last few years while the market continues its turmoil. 

I've also bought other items that are non dollar denominated, stayed out of debt completely, and prepared a exit plan should things go to hell in a hand basket.  Yes, I do have a bug out bag.  

Lastly, as I get ready to return to the land of smiles, my hope is that things won't go bad while I am still here or on one of my trips back to California as it would be much scarier in the US.  Americans are just not prepared for anything but ATMs, McDs,  shrink wrapped chicken and diet sodas from the local supermarket.  

Just three more days to go.....

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