This past week my husband and I had a wild hot date. It consisted of driving three hours north to a remote farm and buying a 5-month-old Jersey heifer, then driving three hours home again. Oooh yeah.
A Jersey is a cattle breed that gives rich, creamy milk. A heifer is a young unbred cow. A date is something my husband and I rarely experience.
The reason we bought this little girl is because our older Jersey is down to two out of four working quarters on her udder, and we're not getting nearly as much milk as we'd like. We thought buying a young, healthy animal was a worthwhile investment.
Investment, you ask? Why would we "invest" in a heifer rather than stocks or treasuries?
It's because we feel stocks and treasuries are worthless, and money isn't far behind. But a heifer grows. Bred to our bull, she will give us calves we can breed, sell, or eat. She will produce abundant milk from which I can make butter and cheese and yogurt. She will have a productive life of about 15 years.
Not a bad investment after all.
And this is the tactic my husband and I have decided to take from now on. During the rare times we have surplus money, we are not putting it in the bank. We are buying tangibles such as heifers or building materials or fencing or canning jars or storable food or fruit trees.
Pat Boone offers foreword to vital book on the economy: "Crashing the Dollar: How to Survive a Global Currency Collapse"
We've decided on this radical tactic because money is losing its value at a startling rate. In the last eight months it has lost 14 percent of its value. This "dollar's road to hell," in the words of Gonzalo Lira, mean useful things like heifers and canning jars and storable food will only cost more and more as time goes by. So why not purchase them now while we can still afford them?
At this juncture I'll point out that I'm not a financial adviser. I don't even play one on TV. I'm a housewife on a limited budget. But my husband and I can't afford to have that limited budget evaporate in value because we naïvely swallowed Ben Bernanke's lies that our economy is just fine, thank you, and recovery is right around the corner.
We believe foolish people trustingly keep their money in the bank and don't notice when its purchasing power dwindles (or when their solid dependable bank just … goes away). We believe foolish people think the stock market can never fall to catastrophic lows (again). We believe foolish people think our economy is fundamentally sound despite all evidence to the contrary.
We believe smart people pay off debt and get rid of unneeded luxuries and put their money into things that will provide a useful function in the future. We believe smart people invest their retirement money in physical gold and silver rather than 401(k) plans.