s&p (4)

Standard and Poor, the financial rating credit company, has been around since the 1860's but they were recently introduced to the "Chicago Way" of governance.  Tasked with issuing ratings for the debt of public and private companies, the company was the first to recognize that America's growing debt is a ticking time bomb that could explode on taxpayers and investors alike.  On August 5, 2011, the company downgraded the US's sovereign debt from AAA to AA+.  The Obama administration promised revenge and have extracted it.

Immediately upon issuing the change in ratings then Treasury Secretary Timothy Geithner threatened the Chairman of the company by promising the government would hold S&P "accountable" and their conduct would be "looked at very carefully."  Two years later, Eric Holder's "Justice Department" did just that by filing a civil lawsuit against the company claiming they were responsible for the financial meltdown of 2008 because of their ratings of mortgage-backes securities.  Other major credit rating agencies that issued similar, if not the very same ratings on the same financial instruments, were left alone.

The company tired to protect its reputation by fighting the allegations in court.  Facing the opposition of the unlimited resources of the federal government and the threat of massive fines by the innovative thinking of DOJ's lawyers, the company was forced to seek a settlement, a move the New York Times declared "support[s] the conclusion that it is futile to fight government fines." The paper detailed how lawyers for the federal government "invoked an obscure federal law passed a quarter-century ago after the savings and loan scandals. The law, the Financial Institutions Reform, Recovery and Enforcement Act of 1989, or Firrea, requires a lower burden of proof than criminal charges and empowers prosecutors to demand unusually large penalties: up to $1.1 million per violation.” Faced with the threat of billions of dollars of fines, the company appears to have capitulated.  

This president has increased America's debt load by a staggering $7 trillion dollars in only six years.  The White House has sent a stark message to Wall Street -- ignore the growing debt crisis or face a similar wrath.  S&P tried to warn us of the coming storm.  For that they shouldn't be punished but they should be hailed.  

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Greece Rated World’s Worst Credit Risk
USA in Worse Shape Financially than Greece
Mere hours before Standard and Poor’s cut Greece’s credit rating by three levels and branded the debilitated Mediterranean nation with the world’s lowest debt grade for its bonds; Pimco’s Bill Gross told CNBC that the United States’ financial status was much worse than Greece’s. Pimco which manages over $1.2 TRillion in bond funds, according to Gross will NOT be buying U.S. Treasury bonds. The “CCC” credit rating for Greece was not unexpected; the evaluation by Gross of the United States’ fiscal ills is no surprise for regular readers of Rajjpuut’s Folly.  
For most of the taxpaying public, the news from Gross and Pimco, is a savage blow. Pimco, based in Newport Beach, Calif., runs the largest bond fund in the world. Gross confirmed a report Friday that Pimco has little interest in US debt and its low yields that are in place despite an ugly national balance sheet.   "Why wouldn't an investor buy Canada with a better balance sheet or Australia with a better balance sheet with interest rates at 1 or 2 or 3 percent higher?" he said. "It simply doesn't make any sense."
As we’ve mentioned many times herein, the combination of roughly $14.5 TRillion in acknowledged national debt; many TRillions more in entitlement debt (social security, Medicare and the federal side of Medicaid) which was never set aside by congress according to legal requirements but rather was spent on ever bigger and bigger government; and the crushing weight of UNfunded future liabilities (the average person paying into these programs over the year is now legally entitled to receive up to 3.1 times their pay-in on average) owed by all those entitlement programs . . . right now stands at roughly $116 TRillion. That is a number roughly 2.16 times the average gross domestic product (GDP) of the entire planet and roughly 7.7 times our American GDP.   And in case you’ve seen other figures . . . it’s simple: they are lies. $116 TRillion is the straight skinny.  In straightforward language, if these people were running public companies and pulled off what they've pulled off on you . . . everyone of them would be in prison for a long, long time. 
Government accounting of the situation has been abetting the lying progressive politicians in these manners for roughly 55 years in the same way that the government now tells us that unemployment is 9.1% in the country (the real figure is roughly 17.8% which includes all those who don’t have jobs that really want one but who don’t fit the government’s narrow definition); in the same way that the government gave us figures about how many jobs that the $787 Billion Obama stimulus “saved or created.” In case you haven’t figured things out yet, Pilgrim, your government is run by the “political class,” that is, by a special interest group whose main purpose in life is to keep the fat, cozy and often senseless bureaucratic jobs created in Washington, D.C. and elsewhere; and for the politicians who passed those laws creating those jobs to get themselves re-elected. They are NOT accountable to you and certainly feel no compunction to tell you the truth EVER. About 20% of the Republicans and 4% of the Democrats in Congress right now are working for you, that’s why those idiots in congress can’t get anything right, because their definition of “right” means “best for them and for the political class” NOT “best for you.”
Bill Gross’ appraisal should stand as an out and out warning to all taxpaying Americans as to the level of damage that the policies of Barack Obama’s administration; and those of Chairman Ben Bernanke’s Federal Reserve Banking System have inflicted upon our economy that so severely undercut the American dollar that unless . . .
1)     House Speaker John Boehner stands by his declaration that “Any increase in the national debt ceiling must be matched ‘dollar-for-dollar’ by a decrease in the budget (our 2011 budget expiring in October is $3.65 TRillion and increases the deficit by $1.59 TRillion)
2)    The house and the senate agree and pass such a program
3)    And President Obama signs it into law rather than vetoing it
 . . . unless such actions take place by roughly August 1, 2011, Rajjpuut predicts that the S&P rating for U.S. Treasury notes will drop very close to Greece’s.  Of course since Obama's handler, multi-billionaire currency-speculator George Soros, would benefit immensely and perhaps double his net worth if the American Dollar collapsed; lost it's 52-year seat as the World's Reserve Currency; and hyper-inflation hit America's shores, which way will the smart money** bet.
Moody’s cut its rating on Greece on June 1 to Caa1, leaving only Ecuador as a worse sovereign risk. The S&P rating abasement put Greece well below Ecuador. No other sovereign nation is graded as low as CCC by S&P, according to an S&P spokesman’s e-mail communications.  
“The ratings agencies are now playing catch-up with the market,” said Gianluca Salford, a fixed-income strategist at J.P. Morgan in London. “The market is pricing in a very high probability that there will be a credit event around Greece. The agencies are just catching up to the negativity that’s already priced in by the market, not the other way around.”
Moody’s gave a wake-up call to America when it recently refused to lower the country’s AAA rating but issued a warning that the USA was “trending negative.” The last time such an occurrence hit this country was on December 8, 1941, the day after the Empire of Japan’s sneak attack on Pearl Harbor. It appears that Moody’s and S&P are waiting to see what happens in the upcoming congressional debate over raising the nation’s debt limit. President Obama is asking that the debt ceiling be increased by $2.7 TRillion to $17.0 TRillion. Boehner and congressional Republicans, as we’ve mentioned are saying that any increase in the debt ceiling requires a “dollar-for-dollar” reduction in the budget. IF, a huge IF, if Obama and the progressive Democrats have any sense, than Rajjpuut estimates that the most likely compromise would be a debt-limit increase of $1.7 TRillion (to $16 TRillion) and a 2012 budget of $1.95 TRillion. Those numbers might actually turn the economy around so markedly that they’d have a chance of surviving in power after November, 2012 elections. If, a teensy-tiny if, any other deal comes around, Rajjpuut believes that Moody’s and S&P will NOT compromise and will NOT endanger those who read their evaluations . . . but will severely downgrade the United States’ Credit ratings. So severely, perhaps that paying near loan-shark’s rates on our treasuries will NOT be out of the question. Enjoy your day, taxpayers!
Ya’all live long, strong and ornery,
** Soros' hedge funds and those run by progressives all over the world are buying up farm land like crazy apparently betting that the collapse of the American economy will lead to a worldwide famine.  Nice people, Rajjpuut bets they just want to put a lot of acreage in foodstuffs to help out in case anything goes wrong?!
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           It’s been less than two weeks since the Republican House leadership caved into President Obama and received just $392 million in real cuts for the fiscal 2011 budget; and just two days since the Standard & Poors bond rating services listed a negative outlook for the United States’ fiscal future and already the effects are being felt as worldwide distrust of the once-mighty dollar is evident everywhere:
Item: George Soros, “The Man who Broke the Bank of England” a.k.a. the “International Man of Misery” who’s earned his tens of billions by wrecking currencies and whole economies especially in Europe and SE Asia  . . . is moving in for the kill. Soros -- the biggest individual funder of the Obama campaign for presidency via 54 separate U.S. and foreign foundations -- claims that the U.S. Dollar as evidenced by the S&P ratings adjustment is “no longer the world’s reserve currency.” Soros added that the dollar is plunging so quickly in value, central banks and investors have no choice but to shift away from the Greenback to avoid huge losses and that oil, gold and other commodities as well as currencies such as the Chinese Yuan, Euro and Yen are taking up the slack.
Item:  The price of gold has shot up to $1,503 the highest in history; silver moved up to $44.77 zeroing-in on its all-time high price of $51.28. Gold has risen 6.5% since the New Year; silver has climbed 55% in the same period.
Item: Numerous restaurants in New York City, Chicago, San Francisco and Los Angeles have raised their prices and some have placed easily-read signs saying they take foreign currency such as the Mexican Peso, the French Franc, the British Pound and Canada’s dollar.
Item: The U.S. dollar index is currently near a 16-month low at roughly 74.30 against a basket of other currencies. The Federal Reserve banks’ easy-money policies are now coming under heavy criticism from Democrats as well as Republicans.
Item: Ethanol subsidizing continues although everyone who understands the problem realizes that Ethanol 1) is only viable because of government subsidies and cannot stand on its own and b)Ethanol causes far more pollution in sum than gasoline does because of the huge costs required to transport corn to the ethanol plants (not quite the same as an oil pipeline). Meanwhile the price of corn and corn products, which are found in about 300-different common foods, are sky-rocketing and surprise, so is the price of food.
Item: The price of oil, which seemed to be ebbing last week, has jumped back almost $5 to $110.60 a barrel. Gasoline prices above $4 per gallon are fast becoming commonplace.
Item: There may be a bit of a silver-lining to this last item. Whenever gasoline gets above $3.30 a gallon, Methanol becomes quite an attractive alternative as does Natural Gas. Both would require about a $150-200 retrofit to be used in cars, but they’re cheaper than gas now; much cleaner; much more abundant in the United States than anywhere else. Some environmentalists claim that while it’s better than gasoline, Natural Gas is still nasty pollution-wise.   At roughly$2.20 a gallon for gasoline we have a real cheap alternative – and of course sometime soon we could see gas prices double that in this country . . . keragen a.k.a. marlstone a.k.a. oil shale (it’s neither shale; nor oil and takes a mining rather than drilling operation to free from the ground. Right now the huge keragen deposits in Western Colorado, NE Utah; and Southwest Wyoming could provide 400 years worth of fuel for the entire world. The leader in that technology is TOSCO (“The Oil-Shale Co.”) and guess who our only real competitor for Keragen dominance might become? China. So you’d better believe it would be in our interests to develop keragen quickly before China does.
An Only Casually-Related Item: Even as 53% of Americans still blame our financial troubles on George W. Bush -- Goldman Sachs has just this week received a blistering new rain of criticism for making a fortune during the financial meltdown by short-selling many of those ridiculous lumped-together-mortgage packages based upon shoddy sub-prime home loans that banks and mortgage companies had been forced to make since President Carter first passed the Community Reinvestment Act in 1977 (CRA ’77). CRA’ 77 law was expanded four times by President Clinton which Bush fought to repeal for 30 consecutive months between January, 2005 and July, 2007. Finally, a bi-partisan too-little, too-late bill passed which in August, 2010, Treasury Secretary Geithner paid respect to Bush for his efforts, by saying his law prevented a much worse meltdown and an utter collapse in home prices. Rajjpuut says, “Congratulations to Goldman Sachs! ”Isn’t it amazing how successful the left-wing is at blaming the free-markets and conservatives for every disaster caused by progressive left-wing interference in the free markets? 
After Clinton’s 1998 steroid-version expansion of CRA ’77 people without jobs; with horrific credit ratings; without rental histories; with only food stamps to declare as “income”; and even illegal aliens found it, easy thanks to ACORN, to get into $300,000 and $400,000 homes than people with good credit, etc. had faced in trying to get into $150,000 homes a decade earlier. If you’re uninformed and believe that conservatives pushed the economy into a ditch you deserve what Obama and the rest of the big spenders are giving us . . . the rest of us don’t. PS: who was the most famous ACORN attorney at getting home loan compliance forcing mortgage companies to make knowingly bad loans in Chicago?   Who was at the same time teaching night classes in self-described “Neo-Communist” Saul Alinsky’s “Rules for Radicals”??? Barack Hussein Obama. In 1995 and 1996 Obama not only was successful in getting such outrageous loans repeatedly and getting promises of further compliance but also in securing large ACORN donations. Does all this make you proud to be an American?
Ya’all live long, strong and ornery,
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“It now seems that Barack Obama and Ben Bernanke here in America are the equivalent of a combined level 9.0 earthquake, tsunami, and nuclear disaster elsewhere.”
“The only reasons that anyone anywhere would buy or accept the Yen, Euro or Dollar right now is because they are either stupid or mad or have no choice (like retirees on Social Security). Get out! Get out! Get out! Put your retirement immediately into gold and silver . . . this government has not shown itself worthy of your trust. 
Credit Worthiness Doubts Plague the Once ALMIGHTY $$
Gold Prices Soar, S & P Makes Long Overdue
Negative Critique of U.S. Credit Rating
Gold prices moved to their highest in history in response to monetary shocks involving the Euro and the American Dollar. The incalculable damage done to America's once proud monetary system (for 60 odd years now, the Dollar has been the world's reserve currency) by the policies of Barack Obama and Fed Chief Ben Bernanke over the last twenty-seven months have just received their long-awaited first official comeuppance.   Standard & Poors has for the first time in history yesterday put a “negative” outlook rating upon the AAA credit rating of U.S. government Bonds. 
The American credit rating has never been anything but “stable” up till now. This long overdue move put American stock markets in a tailspin at least for Monday, 2011’s official Tax Day. Gold finished the day at $1493.00 per ounce while silver climbed to over $43.70 per ounce on the dramatic news.  In contrast, after being down over 250 points (1.9%) for most of the session the Dow Jones Industrial Average ended Monday off 140 points or down over 1.14%.   The announcement by S&P and the falling of the Euro combined for a bad day for financial markets in the West.
European nations are taking a belated but realistic look at the devastation that the insolvency of the P.H.I.G.I.E.S. countries (Portugal, Hungary, Ireland, GREECE, Italy, England and Spain; with England recently showing semi-drastic policy-change in support of their economy) where the specter of non-stop bailouts has created huge ripples in the world currency and stock markets. The debt crisis in Europe, despite the bailouts has seen the European community as a whole show evidence of some belt-tightening.  Here in America, however, Barack Obama has been spending and creating entitlements and big government like a maniac . . . and he’s been willfully abetted by the inflationary policies of Bernanke. 
The United States is one of just nineteen governments that enjoy S&P's highest, triple-A sovereign credit rating. It has had that rating, and a stable outlook, since 1941, when Standard Statistics merged with Poor's Publishing to form S&P.  S&P’s two predecessor agencies also gave the United States their highest ratings. S&P's warning came as a surprise, but only in the sense "that somebody decided to say the emperor has no clothes," says Howard Simons, a strategist with Bianco Research.
“If an agreement (on cutting deficit, national debt and UNfunded liabilities in the U.S.A.) is not reached and meaningful implementation does not begin . . . this would in our view render the U.S. fiscal profile meaningfully weaker than that of peer ‘AAA’ sovereigns,” New York-based S&P said today in a report that maintained its top rating on U.S. long-term debt while lowering the outlook to “negative” for the first time. 
By comparison, S&P is widely rumored to be considering lowering the Japanese bond rating because of the effect of the three-pronged disaster that struck that Island recently. Up to now Japan has enjoyed an AAA rating with a “negative” outlook but been able to sell their bonds at lower interest rates because besides eschewing inflationary monetary policies, the Japanese are a long-reputed “nation of savers not debtors” and the internal demand for the nation’s bonds among its people is very high. It now seems that Barack Obama and Ben Bernanke here in America are equivalent to a combined level 9.0 earthquake, tsunami, and nuclear disaster** elsewhere.  Rajjpuut looks at some crucial wealth-protecting alternatives to normal investing in the footnotes including so-called “Forever Stamps.”
Standard & Poor’s put the U.S. government on notice it could lose its AAA credit rating unless policy makers agree on a plan by 2013 to reduce budget deficits and the national debt. “If an agreement is not reached and meaningful implementation does not begin by then, this would in our view render the U.S. fiscal profile meaningfully weaker than that of peer ‘AAA’ sovereigns,” New York-based S&P said in its report.
S&P said there’s a one-in-three chance that the rating might be cut within two years and that its “baseline assumption” is that Congress and the Obama administration will come to terms on a plan to reduce record deficits. Treasuries and the dollar rebounded from early losses following the statement, while stocks declined.  Another financial rating service, Moody’s Investor Service, which has a stable outlook on U.S. debt, today said the U.S. budget debate is “positive” for the country’s credit. The S&P  action puts pressure on Obama and House Republicans to come to agreement on plans to reduce the national debt, which S&P says could rise to 84 percent of gross domestic product by 2013 roughly a 25% increase from where it was when Obama took office in January, 2009.
In response, House Majority Leader Eric Cantor called the S&P warning “a wake-up call for those in Washington asking Congress to blindly increase the debt limit.” S&P’s negative outlook “makes clear that the debt-limit increase proposed by the Obama administration must be accompanied by meaningful fiscal reforms that immediately reduce federal spending and stop our nation from digging itself further into debt,” the Virginia Republican said in a statement. Overseas investors hold about half of the roughly $9 trillion in outstanding marketable U.S. debt, including $1.2 trillion held by China and $ 0.9 trillion held by Japan. The specter of the Japanese government and China selling out American bonds and not renewing has many in Washington worried.
S&P failed to mention the $14.29 trillion debt ceiling, but said that if current American budget negotiations fail, it might not be possible to get an agreement until at least the 2014 budget cycle. Our Treasury Department has said the borrowing limit will be reached no later than May 16, at which point it will turn to emergency measures that provide borrowing room through about July 8. Republican leaders in Congress have said they will NOT back increasing the debt ceiling unless Obama agrees to more specific steps to trim the budget deficit, estimated to top $1.6 trillion this year, as well as agreeing to significant cuts. Nevertheless, despite all the attention the Dollar has recently received, the Euro is balancing on the edge of disaster and the Euro has risen in recent months compared to the Dollar. It seems that many worldwide investors are stuck in their ways considering only two currencies. Gold and silver, however, have seen meteoric rises in value compared to the Yen, Dollar and Euro.
Yes, there are other currencies more at risk. But the U.S. has, relative to its AAA peers, very large budget deficits and rising government indebtedness and the path to addressing these is not clear according to the S&P report. The report also said that from 2003 to 2008, the U.S. total government deficit fluctuated between 2 and 5 percent of gross domestic product. "Already noticeably larger than that of most 'AAA' rated sovereigns, it ballooned to more than 11 percent (under Obama) in 2009 and has yet to recover."
Ya’all live long, strong and ornery,
      The reader surely noticed that worldwide investors have for the most part shown little imagination in lining up their investment options for the last decade. The only reasons that anyone anywhere would buy the Yen, Euro or Dollar right now is because they are either stupid or mad or have no choice (like retirees on Social Security). Get out! Get out! Get out! Put your retirement immediately into gold and silver (or into “Forever Stamps” ???)  . . . this government has not shown itself worthy of your trust.  
      Taking the tiniest step to purchasing old-fashioned hard money (gold and silver coinage) would have provided investors a boost of roughly 450% in the case of gold and 420% for silver in the last decade. WE ARE LIVING THROUGH INFLATIONARY TIMES . . . fiat, paper currency (paper money NOT backed by gold and silver) is at great risk. Of course, one can always buy bullion gold or silver . . . but the advantage especially of junk silver (90% silver U.S. coins minted before 1965) is that they come in a “package” people are used to dealing with. Robert Ringer (author of “Winning through <despite> Intimidation”) and Harry Browne (author of “How I Found Freedom in an Unfree World) as early as 1973 were touting the opportunity in “junk silver” following the LBJ years.     
      After LBJ, Carter and now after Obama gets through with us . . . junk silver looks to be among the smartest investments possible. Shortly after the government began taking the silver content out of dimes, quarters and half dollars (55.5% in 1965 under LBJ; and the rest in 1971 by Nixon) the price of silver reached $1.65 per ounce, the break-even point. Silver is now at $43.87 per ounce. When it reaches $51.15 per ounce it will have earned its investors in 1965 3000% gain plus the original value. Let’s say two more things about silver . . . .
     Silver is heavy, so for those hoping to store great wealth:  alternatives like gold, platinum and palladium are much more desirable in the short run. Let Rajjpuut urge you, however, to keep a lot of silver handy. Why? Because . . . .
A.                           Silver is a very, very handy and very recognizable unit of exchange for emergency uses and even for everyday purchasing.
B.                           A strange thing has happened in industry. Gold and silver have always been necessary for manufacturing especially in electronics for both metals and up to recently in photography for silver. The fact is that because of silver’s relative cheapness, it has been the preferred metal in industry. Since when used industrially, a metal is seldom recovered . . . silver, at any given time is now RARER than gold in human hands. (It’s still easier to mine silver which is often found with gold in the earth and more common, but silver because of its cheapness is used so much more frequently in industry that the amount of silver held for wealth repository or for jewelry is less than the amount of gold. Rarity makes things valuable so in Rajjpuut’s twisted mind, silver is the better buy.
C.                            Historically the easily most common ratio of gold to silver value has been in the 15/1 – 16/1 range. So if gold is worth $1500 than IF the ratio was holding, silver would be selling at $100 per ounce about $150 higher than its present value. So again the balance of value now favors silver.
      Silver, alas, is heavy. Gold, platinum and palladium are so very valuable that making small purchases with them is not feasible . . . here’s another alternative:  so-called “Forever stamps.”   Background: when he was a boy, Rajjpuut lived in Germany and had a brief spell as a junior philatelist, a stamp collector. One of the most remarkable things he experienced was the beautiful mint Adolf Hitler stamps he collected with tiny values like 60 pfenning (then 15 cents American) compared to stamps issued during the German Weimar Republic with enormously high values like 200,000 Deutsch Marks many of which even had the original cost blacked out or just lined through and a higher value printed upon them.   The four Deutsch Marks to a Dollar before World War I eventually reached $26 TRillion DM to the buck by November, 1923, at the height of their severe inflation (about the time Adolf Hitler became a well-known national name by attempting the “Beer-Hall Putsch” in Munich <that is, attempting a coup d’ etat at pistol point upon the Bavarian State>). What’s that got to do with the price of tea? The U.S. Post Office “leadership” has decided they can save on printing costs and inconvenience for customers and themselves by printing “Forever Stamps.” The post offices hope to avoid constant rushes of huge customer lines for 1-cent, 3-cent, 5-cent stamps, etc. in their facilities when they start changing stamp prices more frequently due to rising## inflation. 
      The idea is that stamps printed without a price label and only the words “First Class” written upon them will be issued. Again: notice that NO price will be shown. So, if say, the price of a first-class stamp is now $.50 and the cost of first-class postage increases to say $5.00 per letter in four years, for example . . . even though postage has increased nine times to now cost ten times the original value, the postal customers’ old stamps still do the trick. In INFLATIONARY times that’s a huge boon for the customer savvy enough to have bought in bulk early on in the inflationary history. Stamps, of course, are light but need more protection from the elements especially water. For convenience sake the best way to buy in Rajjpuut’s not-so-humble opinion is in 100 stamp rolls which come in a protective seal.    So a 100-roll of stamps today costs, say $50.00 and will do the same trick as a 100-roll of stamps four years from now, but the hundred-roll of stamps at that time in the future costs $500.00. For those doing a lot of posting, the value of keeping ahead of postal rates is obvious. For the rest of us, stamps can be used as a very convenient form of MONEY.
Of course, collectible stamps and coins are also great storehouses of value, however, unlike everyday items like ordinary silver coins and ordinary postage stamps -- which both can be used easily AS MONEY – collectible items are “illiquid.”   “Liquid” means easy to dispose of. Dollar bills are highly liquid, but valuable stamps or coins are hard to get rid of without losing a lot of money, because stamp collectors and coin collectors interested in paying you what the item is truly worth are hard to find especially during financial crisis.  Pawnshop dealers might give you 35%. So, at most only 5% or 6% of your “portfolio” should be tied up in illiquid assets whatever they be, unless you are amazingly rich . . . in which case, you’d buy lots of valuables and hie thee to a safer haven where inflation is not a prospect. Rajjpuut hope this overview on protecting your wealth helps. He also hopes his 100% wrong about the need to take such extraordinary means. However, in his estimation, these are desperate times courtesy of BHO and call for desperate measures.
      Is there any advantage from Forever Stamps for the Post Office, you might ask?  Once purchased, a forever stamp is a perpetual stamp that never expires or declines in value. It's value, therefore, is the First-Class Mail stamp postage rate for a one ounce letter at the time of use (not the purchase-day cost) . . . so isn’t the post office risking bankruptcy? Perhaps not! First of all, the Post Office gets an immediate cash flow. Nobody buys those 100-stamp rolls and uses all 100 immediately . . . if they’re such a big operation and need 100 stamps or more per day, they get a special rate and print their postage labels right at their business. These Forever Stamps are aimed at the individual postal customer. So the post office saves on employees manning their front counter and has all this cash to use now when prices are what they are now, not what they’ll be in the future . . . with good management (oh-oh?!) they’ll stay well ahead of the curve and might show a string of profits for once. However, if the hyper-inflation -- that Bernanke and Obama seemed hell-bent on giving us -- comes about, that might be a different story.   People all over the country who’ve bought up dozens or hundreds of Forever Stamps using them like money in exchanges with tiny businesses who use even five to ten stamps daily could put a dramatic strain on the post office finances. Besides Rajjpuut might go into the “Forever Stamp” counterfeiting business . . . .

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