Saturday, November 13, 2010
Mystery Person Contest
Today is Mystery Person Contest Day, but there is no mystery about who this person is. There is also no mystery about how the Weimar Republic came to an end. As we saw this week, things continued to get worse and worse and worse in the Weimar Republic. The currency was worthless, there were no jobs, and the people were cold and hungry. Then a brilliant orator entered onto the stage, and he promised to bring Germany back to its former glory. He had a nice "list" of people and groups responsible for Germany's problems. He appealed to a sense of German Nationalism and pride. The story ends in another World War, and countless millions of innocent people being exterminated.
As you followed the blog during the week, I hope you were able to see that our Federal Reserve is making some of the same key decisions that were made in the Weimar Republic . . . . namely, a policy of expanding the money supply in an attempt to spur the economy, and worse yet, the Fed has showed its hand that it will be monetizing the deficit over the next 8 months.
I don't know what will happen in this country. I hope that our Fed is smarter than the bankers in Weimar Germany. I hope everything turns out OK. What I do realize is that throughout history, when countries print money to pay for deficits, the outcome can be disastrous for the people.
So, my question for you is, have you thought about what you would do if a financial crisis occurred in this country? Would you just sit idly by, and hope the government would take care of you, or would you be able to take care of yourself? Would you be able to provide for your family?
I was blessed to be able to have the resources to build the greenhouse. I realize that people are in different situations, and some are already struggling. A greenhouse would likely be out of the reach of many. However, I used to have a friend who always said, "Don't let what you can't do keep you from doing what you can do". I encourage you to consider taking up gardening as a hobby. Look at that backyard. How much time, money, chemicals and effort are you expending keeping that yard green. Turn it into a garden. Grow your own food. Spend time with your family in the evenings with this hobby. You might just find that it was one of the most rewarding and fun things you ever did. You could even start now by putting plant stands and grow lights in the garage, and getting your bedding plants ready for spring planting.
Another thing to think about is aging parents. Have you put any thoughts into how you would care for aging parents if they lost their retirement, and if social security was not available, or if it did not provide even for sustenance living? Is there a plan other than they stay where they are and eat cat food.
Americans are an optimistic group, and that is good. I grow concerned, however, as I observe we also have a tendency to not want to think about certain possibilities because the implications are so profound. Unfortunately, many would rather simply not think about the possibility of hyperinflation, and simply assume everything will be OK.
I am not predicting a National Disaster. I am saying that there is a reasonable possibility for additional chapters to the financial crisis we are in. I am asking you to consider whether you should be taking certain measures now to prepare for that possibility.