This article was contributed by Future Money Trends.
This is what people predicting 10%+ inflation in the United States don’t understand: America’s debt, relatively speaking, is one of the safest government debts in the world.
At 1.68%, the 10-year Treasury yield that Washington is offering is a bargain, when compared with these other fiat currencies!
Let me show you what other countries offer the world’s largest pension funds, insurers, and other heavy-hitting bond investors.
If you lend the Germans money, the largest and most advanced European economic force, a nation of hard-working people who export products around the globe, you’ll be receiving a -0.31% yield for ten years!
With France, the 2nd-largest economy in the E.U. with its robust industries and mega-consortiums, you’ll enjoy a -0.06% return.
These represent negative yields, which mean that if held until maturity in 2031, you’ll be paying these governments money and only collect your nominal principal.
Greece, a country that needed giant bailouts in 2011, will give you a fat 0.9% yield!
Compare that to Washington, which governs over the most sophisticated economy in human history, which will give you 1.68%.
The Swiss want you to pay them as well. Their government will borrow your money and the yield you’ll be paying them is 0.31%, which means it is, once more, negative!
Japan, the 3rd-largest economy, will pay you 0.07% for a decade-long loan.
At current rates, Washington is giving fixed-income investors the mother of all opportunities compared with the competition, and they know it.
Australia is the only Western country that rivals it with its 1.75% yield, but the AUD is far more speculative than the dollar.
My point is that we do not live in a vacuum, and even though Americans compare the domestic national debt to those of the Weimer Republic or the Argentinian inflationary spiral, if the United States of America were to suffer from uncontrollable inflation, it would be the first empire in history to both possess a well-developed, fully functioning business class and suffer from a major loss of confidence in its currency. No financial empire has ever suffered from one when their economy was booming.
That’s a long shot and we aren’t overly concerned about it.
The thing is, though, that at the same time, we don’t want to be naïve or complacent.
There is no downside to converting a portion of your savings into physical precious metals – none. Physical precious metals don’t need to bite out of your real estate or equities holdings, but why not hold them as savings?
Since the dawn of time, this has been a far better option than storing wealth in fiat.
The annual compounded rate of return for gold has been north of 6.5% since 1971 – there is no excuse not to own it.
One way to save 20 percent or more per year is to just buy non government subsidized food.
“About 13 years ago I started storing up food. I started in fairly small amounts. An extra bag rice here and an extra bag of beans there and I also piled up on canned foods as I went. This all has worked out pretty well. Typically, I will consume, replace and add even more as I go.
Somewhere back in time many years ago I was introduced to packaged survival food. I cashed in on a special whereby I received 24 hours worth of survival food. I wasn’t especially impressed and preferred my canned goods, rice and beans strategy mentioned above.
Lately though I’ve decided to revisit the packaged survival food idea.”
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DEBT beyond anyone’s wildest dreams. Currency printing (at least within the Fed. Res. balance sheet) to oblivion. Cretins that promote MMT (Modern Monetery Theory) to excuse spending beyond any reasonable level. Of course there is no reason for concern. Ha Ha HaHaHaHa……….
Ha ha ha, what a crock of shit.
Everything is good until it isn’t…nothing to see here…the USA will of course never fall and the US dollar is of course indestructible.
What a joke, this ship is going down mofo’s.
It’s all predicated upon the USD keeping would currency status. Little by little this is being chipped away thus diluting the pool in which to dilute the ever expanding M1. The USD appearance is in keeping with the saying, “How do you look young and thin”? “Hang out with old fat people”.
OOps……WORLD. not WOULD……
My dad was 8 yrs old when the crash happened and he would tell about how they lived and made do with what they had .. And I always wondered why Dad was pack rat of sorts. Fortunately they live by a river ( to the day Dad passed away, he hated fish ) and on a farm. He would tell about going to town for grocies ( what little they needed from town ) before the stock market crash and his parents would buy what they needed with the cash his parents had on them. After the crash going town for grocies, he said that they need a wheel barrow full cash and could only get a a small box of grocies ( his words, not mine ). And maybe I’m all wet here, but it starting to look that again, the only difference now is there isn’t near the number of people living on farms that can or would survive. Another story he use to tell was of people coming out of town at night and stopping by Granddad’s corn fields and they picked ears of corn that was still in the milk stage , so they could or world have something to eat. In the fall at corn picking time, there would be anywhere from 6 or 8 rolls of corn stalks picked clean and sometimes as high as 12 rolls with out ears of corn. It was that way all along that river valley where Dad grew up. I wonder what would happen in this day and age if that happened again and will if happen again, because history does tend to repeat it self in more ways than one.
alfie, thanks for reminding us of the hard-won-wisdom of the GREAT DEPRESSION ERA ancestors. I’m old, so I remember tales about doing without. Some folks were frugal on a level I couldn’t relate to when I was young. The hard knocks of life taught me the wisdom of their ways. Wish I would have embraced those frugal ways earlier.
To the snowflakes, you think a DEPRESSION canNOT happen again. Life is cruel to those that don’t pay attention.
My Mom and her siblings in Philadelphia walked the train tracks adjacent to their row home to pick pieces of coal that fell off the cars. They had to get out early because every family was doing it. A pound here and a pound there helped heat the home. Her brothers, my Uncles, served in WWII; they were accustomed to going to bed hungry and doing without. That generation was a tough group. My grandparents were too proud to go on “relief”.
If I never learn anything else in or from life , it is to never say never. At 70 , I’ve learned years ago the ” never ” can and will happen faster than you’ll ever know and when you lest expect it.
.06 – .31 would be a nominal rate of taxation. Couldn’t this be used as a legally-reporting shelter, instead? Yes, if you had some windfall, already.
Regardless, the maturation of muni bonds and putative worth of metals is complete abstraction, set by a govt price fixer.
L4 – L5 advice is not telling us how to make any of these options into a passive income stream.
One of the safest government debts in the world? Yea, right. Is it because America is a manufacturing power house? Oh wait, That went to Asia. Is it because we produce so much oil? Nope! The only thing America produces is DEBT!
“No financial empire has ever suffered from one when their economy was booming”. Wow! A booming economy you say. With unemployment WAY understated, many thousands of private businesses either struggling or closed forever, the days of dollar dominance rapidly waning, ‘free’ money for the 1% to invest in the Markets, a corrupt Central Bank buying us all into permanent servitude, and a ‘dementiad’ buffoon in the White House, why what could possibly go wrong! Talk about defying the odds!