Free Money! Free Money! Free Money!

Yup, that’s basically what it is. Free. The Federal Reserve has dropped the Prime Lending rate to 0% – 25%. That’s basically free to borrow money.

Not money that you and me can borrow, but banks and other financial institutions. They borrow from the Fed and then loan it to people like us. The Fed raises and lowers rates in order to control the money supply and this lowering is their further attempt to boost the economy.

But it’s not working.  Markets are still down, companies are still laying off employees and slashing salaries. Dogs and cats living together. It’s the end of the world!

Okay, no, it’s not the end of the world. It might be the end of the world as we know it, though. Banking and financial institutions are being shaken up enough that the fallout and resulting social, legal, governing and financial changes may be so great that it’s possible that we won’t see the prosperous conditions, like we saw in the middle of this decade, again in our lifetimes. 

But, that’s the future and no one can foretell the future, so let’s concern ourselves with what’s happening right now.

Right now, we are in a slight deflationary period. That means that the prices of some things are going down. Most prominently are energy costs, specifically gasoline and diesel. We’re also seeing huge cuts in prices on retail goods as stores are trying to lure more customers in order to keep the revenue stream coming in. All bets are that this will not last, as the pressure of inflation starts to take over (all those trillions of dollars that they’ve been printing up will cause inflation, if not hyperinflation).

Take advantage of the lower prices and do what you can to increase your supplies. No one knows how much time we have, but everyone seems to think that next year is going to be really bad.

There are a few categories that are not in a deflationary period: Guns, Ammo, Gold and Silver. These items are going up because of the current demand.

– Rob

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