Joe Doakes from Como Park writes:
I like this analogy, from Instapundit
Don’t think that zero is as low as interest rates can go: money as a store of value is also threatened.
Primitive man often faced an interest rate of -%50 per hour, if he caught some meat for instance, and was trying to get it into the bellies of his family it spoiled or was snatched by competitors. Now you can store your income and wealth in financial instruments and only buy meat when you want to eat it, or keep it in the fridge or freezer for even greater convenience. We take all this for granted, but as near-zero nominal interest rates come to be paired with rising inflation–an outcome that is pretty much guaranteed under QE3–even coin and currency will no longer keep stored value from wasting away. We are heading into difficulties that should be a thing of the past, and its not just bedbugs and resistant disease. Government is squandering EVERYTHING.
So we need to invest in stuff that won’t spoil, that people will be willing to trade for after the economy collapses. Honestly, gold bullion doesn’t strike me as useful for everyday living. More useful, durable stuff would be:
I’m pretty much good to go.
Americans at large – other than Mormons – have never really taken the possibility of complete collapse seriously.
It’s looking smarter and smarter.
I bet I just got onto a DHS watchlist, didn’t I?