Creature From Jekyll Island by G. Edward

Won't that be inflation? Yes it will, but it will be significantly different from inflation by fiat money on four counts: (1) instead of being caused by politicians and bankers attempting to manipulate the economy to enhance their personal agendas, it will be caused by natural economic forces seeking an equilibrium of supply and demand; (2) instead of being harmful to the nation, leading to the destruction of the economy, it will be part of a healing process, leading to prosperity; (3) it will be less severe than what we will experience if we do not make the transition; and (4), instead of being part of a continuum that is designed to go on forever, it will have a built-in termination point: the point of natural equilibrium where the human effort to mine gold and silver equals the effort to create those things which gold and silver can buy. When that point is reached, the money supply will cease to expand, and inflation will stop—once and for all. The hangover will be gone. From that point forward, prices will begin a gradual descent as advances in technology allow improved efficiency in production. With the arrival of lower prices, better job opportunities, and increasing prosperity, the voices of discontent will gradually fade. After the storm is over, America will have an honest money supply, a government with no national debt, and an economy without

inflation.

No matter what scenario unfolds in the future, there is white water ahead. We had better tighten our straps and prepare for the rapids. We owe it to ourselves and our families to take measures which will increase our chances of coming out at the other side. If the pessimistic scenario is played out, it will make little difference what we do, because there will be no other side. But in the realistic scenario, there are certain precautions that will make a big difference in our economic well being.

To fully appreciate the wisdom of some of these measures, it is well for us to pause and consider the possibility that a transition to economic safety and sanity will not be orderly. Another variant of the realistic scenario is that our entire system could collapse, including the international structure being assembled at the UN. If that should happen, we won't have to worry about an orderly transition to a sound monetary system, because it won't happen.

Our primary concern will be basic survival.

Economic chaos and civil disorder would not necessarily have to be the prelude to world government. If a sufficient number of A REALISTIC SCENARIO

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people were well enough informed to know in advance what the enemy's game plan is, and especially if they were in the right places within the system, they might be able to provide leadership at the critical moment. If there is blood in the streets and long periods of anarchy, it is theoretically possible that groups of enlightened individuals who have prepared in advance could move into the power vacuum and take charge. That may sound like another pessimistic scenario, but it is not. In the final analysis, it may be the most realistic one of all. But we should not hope for it. All we can do is prepare for it should it come to pass.

HOW TO PREPARE

What can we do to prepare financially? To avoid making this a lengthy dissertation, let's use the outline form. Elaboration should not be necessary.

1. Get out of debt. A mortgage on one's home is a logical exception, provided the price is right. Borrowing for one's business is also an exception if based on a sound business plan. Speculative investments are not a good idea in these times unless they are made with money you can afford to lose.

2. Pick a sound bank. Maintain accounts at several institutions. Do not keep over $100,000 in any one bank. Remember that not all types of accounts are covered by FDIC. Some institutions now offer private insurance. Make sure you know to what extent you are at risk.1

3. Diversify your investments among blue ribbon, over-the-counter, growth, income, large, small, mutuals, bonds, real estate, bullion coins, mining stock, and tangibles. Industries that do well in hard times are gambling, alcohol, and escapist entertainment. Study the fields and companies in which you invest. Personal knowledge is indispensable.

4. Avoid the most recent "best" performers. Their great track records are historical. They have no bearing on future