Dollar MeltdownIf you want a great primer on monetary economics, and tips on how to deal with the worst-case scenarios for macroeconomic turmoil, you should get a copy of the The Dollar Meltdown: Surviving the Impending Currency Crisis with Gold, Oil, and Other Unconventional Investments by Arizona's own Charles Goyette.

http://www.thedollarmeltdown.com/

Of course, there is a remote theoretical possibility that Bernanke and Company may somehow engineer a "soft landing" by pulling all of that newly-created money back in at precisely the right moments during the next economic recovery period, and thereby avoid massive CPI price inflation. But the odds would seem to be very much against that.

I bought a little gold from Goyette and Republc Monetary back in November (and I'll probably buy RYJUX--or TBF--on his recommendation). But timing is everything. When I lived in Arlington in 1994 and 1995, I used to bicycle over to a coin shop on Lee Highway and buy gold and silver eagles. I was buying gold for less than $400 an ounce. At this point, I'm very happy I did. But I had to wait a long time to see my investment double in value (as measured in green pieces of federal paper).

That said--and Charles would be quick to agree--you can never totally insure yourself against the risks of government predation. FDR outlawed private holdings of gold in 1933, and if things get really crazy on the monetary front, the government could order banks to open up our safe deposit boxes to confiscate any real money we have. So, you're never totally safe.* That's why we all need to put a ton of pressure on Congress and the President, and keep them from destroying our currency with spending and debt.

After you've read the book, send me an email (tjenney@afphq.org) and let me know if you think we should have Goyette speak on monetary policy at AFPF Arizona's Taxpayer Town Halls.

--Tom

• "Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where moth and rust do not destroy, and where thieves do not break in and steal. For where your treasure is, there your heart will be also." (Matthew 6:19-21 NIV)