Calgary Libertarian

A great simple explanation of how inflation works and why we can’t spend our way out of recession.

Weekly Freedom watch. Best show on fox.

“Don’t Put Your Money Under The Mattress” , “A Penny Saved Is A Penny Earned” I’ve heard these quotes from time to time and after finishing up the book The Meltodown by Thomas E. Woods. I thought I would address them on here.

First I want to point out that I do a lot of investing and trading on the stock market and find the market is a great source of making money and to help create passive income. That being said your retirement nest egg should never be in the market , the market is very volatile and despite its liquidity you could be in a position to not want to take your money out in fear of realizing losses (Like many today).

“Don’t Put Your Money Under The Mattress” so the so called money professionals will tell you to put your money for retirement into a nice safe mutual fund to mitigate risk and make sure its available to you when you retire (Thats if your not planing on retiring for a very long time and you don’t retire on a bad beat in the economy like our current one) on top of that they claim given enough time the market earns roughly 10%. 10% subtracted by 4-6% inflation gives you around 6% growth , I guess that’s better then nothing, I prefer dividend paying stocks not only do they pay your aroudn 1% + a year but you have the capital grown on the stock price. “A Penny Saved Is A Penny Earned” for obvious reasons this is not true (interest paid by banks – inflation = losses and at the inflation is going to explode with all the newly created money making its way through the system). I have looked over many charts and did more research on gold. The price of gold might go up and down over time but roughly over the last 50 years it has stayed the same (one case of a massive spike followed by a correction back to its normal level) , when I say the same I do not mean the nominal dollar amount ,this would make it no better then cash, I mean its buying power. So if the buying power of gold is constant and gold is a physical investment, I say in the case of gold both these old fashion sayings are true.

A Penny Saved can be a penny earned if converted into gold, and Yes don’t stick your cash nest egg under the mattress first convert it to gold then do it! Now I am not talking about converting all your cash in to gold every one needs to live and spend money on day to day things and gold is no longer legal tender however any money you plan to keep for a very long time I suggest converting it to gold. Gold will make that money keep its buying power plus if you ever do need it you can convert it back to cash quiet easily. As of Friday I have started converting all long term savings in to gold and silver storing these items in a vault owned by a private company (as the amount grows I will be moving it to the Perth Mint) who then issue me certificates of deposit. I plan on converting all the long term cash in to these items and 10% of any net earnings ,including dividends, I make on the market (I was saving it in to a cash GIC before) By the end of it all I will have protected my buying power for a later date if I need it.

Here is a quick link to some inflation charts

http://www.inflation.us/

The Meltdown

Disclaimer.
I am putting this in to protect myself from the non thinkers our there. I am not telling you to convert every thing into gold you should do you own research and think/ consider your own personal situation before you do any type of investing. I am not responsible for your money and I am not a professional money manager.