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07 October 2008 @ 07:43 pm
outlines of the nightmare becoming visible  
I've come to respect the advice of several financial professionals over the last six years because they were always deeply analytical and also very humble.

They have also been consistently correct about the future while most other so-called "experts" were blindly hopeful and optimistic.

And because I followed their warnings and advice I've protected my life savings clear up to today when millions of others are seeing their retirement money disintegrate. But soon ALL savers will be in the same boat, including me.

Even today, when so much denial is finally gone compared to just a month ago, there are still gauges flashing and indicators ringing to these men that are not even being noticed by the business news media.

These pertain to actions of the Fed since mid-September, just reported in documents in the last few days, different from the planned future actions that we are now calling "the bailout".

These actions are extreme and unprecedented, and to the men I get my advice from, they are a giant tsunami or Category 5 hurricane, exactly what they predicted but only far, far worse, and the consequences will be severe and probably soon.

The consequences I am referring to are the transition from the deflation happening now in the stock market to the hyperinflation end game I mentioned in recent entries here. (Weimar Germany in the 1920s and Zimbabwe in 2008 are examples of this end game.) Now that the Fed and the Treasury already set up the beginnings of this end game in September, and are already implementing it, the only remaining question is which form will the nightmare take as it unfolds?

Will a shutdown of spending and the economy keep the excess paper money hidden in mattresses and other places (delayed hyperinflation), or will it be forced into circulation (immediate hyperinflation)?

The answer to that is the key to how long it will be before all savings accounts and money market funds quickly lose most of their value.

In September, the Fed and Treasury made the decisions we've been dreading but expecting. We knew that when the debt bubble collapsed this would be the choice, because we knew it had grown so large that all the savers of the world would be sacrificed to try to soften the severity of the debt collapse.

I believe there could be as few as two weeks before all this dawns on the rest of the world.

So, there might be no more time than that to move money into gold and silver, and today still more mint conduits for that dried up because of the hoarding I mentioned in the last post.

1000 ounce silver bars are still available tonight. Also, the gold and silver ETFs in the stock market are still safe havens, but are much riskier.

My ability to purchase these is bringing me only a small amount of comfort.

This is because my 401k, which is a large part of my retirement savings and is now 100 percent money market, has no provisions to transfer money to gold or silver or their proxies.

I would have to quit my job so I could roll the money over to an IRA before I would have full control of where that money goes.

For five years I have been debating whether to do just that at a moment like now, but the choice seemed so awful and scary I couldn't bear to decide what trigger events would prompt that move. Even tonight I can't bear to make a decision about that. I just can't!!! It's too unbearable. Maybe tomorrow I can commit to an emergency plan about this 401k. To me, this feels like deciding to jump off the Trade Center or stay and be burned to death.