Preservatives

This blog is a warning to all investors, in the current financial crisis, wealth preservation is key to financial survival, there's an enemy that's about to sap all the goodness out of your savings.

Preservatives are ingredients that prevent deterioration, there are two types of preservatives, natural and scientific. An example of a natural preserved substance is jam. In my childhood, my mum used to make jam, she'd label the jam jars as preserve, she'd have raspberry preserve, strawberry preserve, apricot preserve, etc. The sugar in her recipes were what preserved the fruit and gave it consistency and that sweet flavour which enticed the taste buds to go back for more.
Another example of a natural preservative is salt. When I was in my adolescence I would often go opossum hunting and would skin the bounty for profit. When preparing the pelts I would stretch them out on pre-nailed template's which I had made, I would then apply salt to help in the curing process. The salt's abrasive attributes would dry the pelts and once cured, would leave them pliable enough to be then made into rugs or blankets. Modern foods are saturated in preservatives, at least when my mum made jam, she had control of what ingredients to use. If you take a look at the labels bought from the food store you'll find all different types of additives and preservatives (most not healthy).
Takeaway foods are made up of preservatives. There's a particularly popular restaurant of Scottish descent, whose menu is made up of ingredients enriched with preservative. There's even rumour about how the food from there, can be eaten month's later without refrigeration, because of the amount of preservative. One of my friends frequents this establishment, often I quip him on his good looks and youthfulness and tell him "it's the preservatives in the food just doing their job, the more you eat the better you'll look". The downside to preservatives though is indulgence, and too much is bad for you.
Wealth Preservation
In the same way as food needs preservation so too do your savings. In a savings account your savings earn interest, interest not only preserves your wealth, but adds to your wealth. This is great, until you add into your savings an enemy called inflation. If inflation is running at a level higher than your interest rate, then the interest earned may well be worthless and your bank charges will add to the rot setting in on your savings. Savings accounts are good when things are going great in the economy and interest rates are set above the inflation rate. However, in a time as we live in now, with low-interest rates on savings and inflation increasing, then your wealth creating plan may well be in wealth destruction mode. Inflation is set to increase, the wealthiest? nation on earth is currently printing money uncontrollably to overcome its' deficits, the US is racking up debt at an alarming rate, this is going to translate into an inflationary, or most probably, hyper inflationary environment. Inflation is caused by money creation, the more produced the greater the inflation, on one hand prices increase on the other hand the dollar devalues, eventually the currency dies. There are deflationists out there in our scary world, these are people who would tell you the opposite is true, that prices are falling, don't listen to them they are anti wealth preservationists, they are a bit like extremists and socialists of this world. They will tell you things that are not necessarily true and cause all like sheep to go astray and get on board with the lie. If you are an advocate of deflation, then why are our loan payments rising? food costs rising? insurance premiums rising? utilities rising? and our wages stagnating?
 New Zealand Economy
Here in New Zealand, the Government issued their budget in May 2010, introducing some positive steps to help the average household, within weeks however the Reserve Bank issued a raise in interest rates which erodes all those positive steps, which will increase inflation. This news came because we are supposedly coming out of recession, while the government borrows $250m per week to offset its deficit. Well the Reserve Bank from my viewpoint is correct and would have all the sheeple think likewise, but my viewpoint is that perhaps we are coming out of a recession but not to the fiscal stimulant side but to the negative 'D' word side, therefore are we coming out of a recession and into a depression? NZ, like the US is borrowing its way out of debt, which will eventually lead to inflation. If your savings are in paper (fiat) currency, then they are at extreme risk of destruction.
The Only True Currency
The true wealth preservative are the only form's of currency that cannot be eaten by moth or destroyed by rust, these currencies are, GOLD and SILVER. Look how Gold has performed against the US dollar on Youtube here. Gold is once again going to be the king of currencies and so it should because gold is a finite commodity of value and is honest currency. An honest currency is one that is of value as gold is and equally backed by the physical asset, giving it accountability. The wealthiest nations in the world have a certain amount of gold in their asset base. The US has the most, some 4000 Tonnes in Fort Knox? This is their insurance for the inevitable collapse. New Zealand has none, the NZ Government however, recently announced it wants to mine conservation land for minerals, in particular gold and silver, does the NZ Government know something?
Invest NOW into Precious Metals
As sovereign currencies collapse, countries will turn to gold and silver as terms of trade and investors will pour in, this will cause the price of gold and silver to rise exponentially. When the US dollar fails, USA's debt will most likely be divided by gold ounces in Fort Knox and probably have some estimated forward years of debt added to its value in order to give a surplus. This will propel the value of gold into the stratosphere and re-introduce a gold backed currency. It's time to invest wisely, get into the market now as a safe haven for the current crisis and immenent global financial turmoil. If you have any questions or would like to comment on my blog, please use the comments box below. Happy preserving.


The contents of this blog are for general information and illustrative purposes only and are not intended to serve as financial, investment or any other type of advice. Any reliance on any information on this blog shall be at the user's own risk. The Blog writer shall not be responsible for any loss or damage of whatsoever nature (including consequential loss or damage) suffered or incurred, directly or indirectly, by the user or any other person as a result of relying on, or incidental to, or the use of, or any matter relating to, the information contained on this blog.