Jay Midnyte

The House passed a bill last Wednesday that will raise the national debt ceiling to $10.6 trillion from $9.815 trillion. $800 billion in trash, I mean cash. Obviously the U.S. plans to tackle our economic problems by creating more paper money.

James West, a writer for Gold-Eagle and an investor, has 4 tips for us to survive a "Greater Depression".

1. If you own any U.S. dollar denominated assets, sell them and put them into gold and silver. As the dollar plummets, these metal prices, expressed in U.S. dollars, will rise, thereby preserving value.


2. If you own your house, sit tight. Don’t sell it and whatever you do, don’t mortgage it. One of the direst outcomes of hyper inflationary or stag-flationary periods is high interest rates. Remember the 80’s when interest rates suddenly soared to 20% and beyond. In December of 1980, interest rates averaged 21.50 percent on mortgage loans.


3. If the bank owns your house, you might consider mailing them the keys, and walking away – especially if the mortgage you’re carrying is more than your house is valued at. If you think it’s a struggle now trying to make ends meet, just wait til food and energy prices continue their upward trajectory, and the U.S. dollar purchasing power continues its downward trajectory. Besides, having a bad credit rating rating for seven years might just be the discipline you need so that “no” becomes part of your vocabulary again. No matter that you’re being told no instead of saying no yourself. Consider it “rehabilitation”.


4. If you own anything that consumes lots of gasoline or diesel, sell it. I’m riding around on a scooter these days that costs me about $40 a month in fuel. Takes some getting used to, especially on rainy days, but it’s the best hedge against high gas prices yet.

It is kind of hard to imagine the U.S. Empire, greatest empire that ever existed, collapsing in front of our eyes. But we must do what we need to do to ensure we do not collapse with it.