If you don't think that gasoline (+petroleum products) is the engine of our "recession economy" here in the states, have you ever noticed that in a neighborhood or at an intersection where there are two or more competing gas stations, the one with the posted prices 3 or 4 cents lower than the other two has vehicles lined up, waiting to pump? Some of those cars and SUVs probably use more than 3 or 4 cents idling in line!
Earlier this year, I told you that big oil was planning to have gas way over $3.50 a gallon by the 4th of July, which would have further crippled the financial picture. Because of the great public interest in the BP Oil Spill in the Gulf of Mexico, those plans were aborted. Over the last several days as the price of crude has inched upward, the price of gas has inched downward.
I think someone "high up" is scared to death that the US will be plunged into a deeper darker recession if gas goes back up high. The last price spike was one of the nails in the coffin of the hard times of the last 20 months... Personal income was down last year in just about every big city in America, according to new figures from the Commerce Department.
A telemarketer called the other day, looking to interest me in Silver and silver coins. Since I know a thing or two about precious metals, we began talking. This fellow knew his stuff - he may have been working out of a call center but he certainly was familiar with the silver trade.
He made one startling statement: he believed that a stock market crash is on the horizon - one that won't be as bad as 1929 but will have some rather chilling effects on the global economy. I don't know if that is his personal assessment of the situation or if he may have gotten that information from a financial publication or website.
No one can look into the future. No one can see a disaster until the moment it is blindsiding us. Remember 9/11? It came out of the blue on a clear September morning. The only possible indicator (which could be coincidence) was what has been reported as "unusual activity" regarding some airline-related stocks or futures. I forget the details, but that's not really important. Whatever brings down the stock market, if it does actually fall, will do so almost "in the blink of an eye" - and nobody will be ready for it.
That's where an article like this one would normally end. But I am asking you to think beyond that point. If there is an "unexpected event" that triggers a financial crash, what's YOUR "next move" - how will YOU cope? Oh it's great to have a stash of gold or silver, but how far do you think that will go. How long would a handful of silver coins last? Who would set prices? How would you redeem them, and for what? Do you really think the coin stores and pawn shops will be handing out cash for your old gold and silver coins after a financial collapse?
Tags: global economy, precious metals