Tuesday, March 1, 2016

Zero Hedge Advises Panic

A Jewish mother's telegram:  "Worry.  Details to follow."

Tyler Durden notes if everyone were to draw out their cash from the bank, to avoid negative interest rates, it would take twenty years for Uncle Sam to print the currency necessary.  Can you wait twenty years for the ATM to process your request? This article is full of fun facts.

The upshot is get gold, although as that is also property, it too will be subject to forfeiture, as we have done in USA before.  But but but, Uncle Sam was only able to get 20% of the gold.  Yes, but he suppressed it 100% for over 40 years.  Gold might have been hidden, but it was useless.  And available if Uncle Sam had decided to get tough.

Also, both USA and Germany had concentration camps and gold forfeiture.  Although Germany's concentration camps were earlier and nicer to start (according to inmates at the time) things got dire in Germany and horrors still unimaginable happened there.  The danger is not that USA will ever get an Adolf Hitler like Germany, the problem is the American and German people are no different when it comes to self-inflicted crises.

Sure panic, but currency or gold or whatever is property, low hanging fruit, and you are begging to have it taken.  The dinosaurs which grew in the primordial swamps of capitalism are now dying: McDonalds, Best Buy, Sports Authority, Petco, CVS,  Home Depot, etc.  The fetid air which they breathed is chilling.  The corner hardware, grocer, gas stations, pet shop, stationers, pizza parlor, burger stand, all family businesses, which they rolled up in the 70s, 80s, 90s...  gone...  but the dying dinosaurs are creating a vacuum of demand that nature abhors.  Ross Perot's giant sucking sound is retail America needing family businesses.

And they will signal what people really want now.  And for this traders will bridge demand with supply in such places as China, and as capitalism fails in USA, in that measure free markets will return to USA and small family manufacturers will begin to re-emerge, creating a new industrial base.  There is no politician who will not strive to stop this, but again, family self employment is fruit too high.

Sure, as Durden says, whoever panics first wins.  But get your assets into the means of production.

And as an aside, I am seeing thriving retailers who have adapted the ancient Powell's Book Store tactic of selling new books next to used copies, on the same shelves.  Hardware stores with new and used tools in the same store.  Boutiques with new and used clothes on the same racks.  It makes sense, a way to transition inexpensively, and serve a wider group.  Every brick and mortar better than  Amazon for selection and price.  Maybe that is why Amazon is now opening brick and mortar stores.

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