Dollar begins free fall

http://www.nypost.com/p/news/business/dollar_loses_reserve_status_to_yen_hFyfwvpBW1YYLykSJwTTEL;jsessionid=65E301CF47ED50D15170F8D6530791C5

"After printing up trillions of new dollars and new bonds to stimulate the US economy, the Federal Reserve chief is now boxed into a corner battling two separate monsters that could devour the economy -- ravenous inflation on one hand, and a perilous recession on the other.

"He's in a crisis worse than the meltdown ever was," said Peter Schiff, president of Euro Pacific Capital. "I fear that he could be the Fed chairman who brought down the whole thing."

Well, who couldn't see this one coming? 

I see there are two trends emerging, A) Denial, the DC spendthrifts simply act as if this is not a fact of life for their budgeting purposes, they will not stop spending, they will not stop issuing debt and they will continue to print money with no inherent value. 

B) The statistics for inflation will be skewed and unreliable, quite simply they will lie about the effect that inflation will have on everyday life in America.

What this means in real world terms, if one stockpiles is imported goods are going to go upwards in price, everything from plastic storage bowls to Levi's will cost more and soon, perhaps as soon as this Spring, maybe sooner.

It also means that internally produced commodities such as Sugar and Grains will rise in price as the producers can now make more money selling internationally than domestically. 

I'd recommend inventory what items you purchase the most that are produced internationally and make a decision on what you would invest in and use the most and make a decision to purchase, or do without or substitute...because they are only going to rise in price as the dollar slides in purchasing power.

The Propeht of Doom Syndrome v Enlightened Self Interest

No doubt about it, these are troubled times Spiritually, Ethically and Financially, from Bank Collapses to Nationalization to Inflation to increasing structural costs, and of course anyone who is even partially serious about a Religious Faith is the subject of scorn.

Times like these a Jeremiah or a Nietzsche arises to pronounce this era is the most trying ever and destruction is certain to come. It's human nature to seek out what we feel is the "truth" for the times, in good times, Anthony Robbins or Chris Warren, in bad times Gerald Celente or Peter Schiff.

The Prophet of Doom is set upon a pedastal and either praised or mocked depending on what one's views are, the Sunny Optimist is either called out of touch or bringer of hope, depending one what one wishes to hear. 

As a Preparedness Aware Individual, it is wise to maintain a balance between both, to be Optimistic about one's preparations but a Prophet of Doom subscriber is not a mutually exclusive philosophy, in fact, it is simple Enlightened Self Interest to grasp the fact that times are never as bad as they seem, nor as prosperous as they seem.

A year's worth of supplies should cost about a month's pay depending on family size and Cadillac tastes, and using the Alpha Strategy, one is insured either way, it is a safe bet that inflation will be a fact of life, so prebuying items that will cost more later makes sense in the case of job loss, or hyper inflation or simple piece of mind. So one has effectively hedged against both a crash or even a return to normalcy.

I enjoy Gerald Celente's work, I also like Rick Warren's outlook, I don't plan on moving to the hinterlands (yet) nor do I plan on putting on a happy face...