Time to (RE)Move Your Money

Back in September 2011, I posted that it was time to move your money because the system was failing.  Who could have known that MF Global would fail a month later (OK, who else besides John Corzine?).  Actually, anyone who was paying attention.  Because the fact is that we are all being ripped off.  Unless, you are 'fortunate' to be one of those actually doing the ripping off.  That means that you are a banker, a credit card issuer, a Social Security recipient, enrolled in Medicare, work for the government and more.  In other words, 51% of the population is being ripped off by the other 49%.  Yes, it is not 99% and 1%.  It is 51/49.  Republicans and Democrats.  White and black.   Male and female.  We are close to the tipping point.  The point where it shifts to 49/51% (or 21/79%.   Yes, I am making up the numbers up!  Just like the "99%" ers.  But it is a useful way to illustrate complex ideas in a simple statement.)  That is the point where markets become unstable.  Wars begin or escalate.  Riots break out.  Supplies break down.  We are seeing it in Greece.  We will see it in Spain.  And Italy.  France. Britain. China.  Japan.  (Yes, even Japan.  They will just be more orderly about it.) Finally, the good old US of A.

We will survive.
Our society will not collapse.
The country will not disintegrate.
At least that is what I CHOOSE to believe.  (ALL belief is a choice, by the way.)
But there is a question about our currency, the US Dollar.  Will it survive?  I THINK so, but I don't necessarily BELIEVE so.  I do believe that it will be the last one standing and my gut feeling is that radical changes will take place in what we have come to know as the Dollar.  And since I believe that the USD will be the last to fall, but the risk of it eventually failing is not trivially close to zero, what is the best thing to do?

First is to reduce debt.  Ideally to zero.
Second is to get as liquid as possible.  This will be different for different people, but it includes buying US Treasuries of short duration (ideally 3 years or less, since the crisis is likely to occur 0-5 years from now).  It also includes having some deposits in the bank, but it also includes having some cash, FRB Notes, Greenbacks.  One reason, is to have money to spend: to take advantage of opportunities and emergencies.  But the other reason is because the system is failing.  And we savers are being ripped off.  We are being ripped off by the banks which borrow OUR money and pay us 20 cents while lending the same money to some deadbeat using their credit card at Walmart at $28.  We are being ripped off by a Federal Reserve which is conspiring criminally to steal 2% of your money annually through inflation.  But finally, we are being ripped off by criminal organizations like MF Global, which has taken $1.2B of their customers money.  The only way to resist is not to participate.  Don't participate in the markets, banks or the financial system in general to any extent than absolutely necessary.  As yesterday's Non-Farm Payroll report demonstrated to anyone paying attention, the powerful elites running this country will not stop at using fraud and deceit to keep the great Ponzi scheme that is today's economy going.  They will lie, cheat and steal to maintain their grip on power.  And it may be successful for another year or longer, but I doubt it.  So now the only way to protect yourself is to not play their game, because the die are loaded and they have already been cast.  And you and I cannot win.