There were two articles today in the Wall Street Journal on where investors are putting their money, in order to be safe.  One touted US Treasuries as a safe haven and the other recommended consideration of so-called” Asset Allocation” funds that combine stocks and bonds in a blend to reduce volatility and risk.  What strikes me is how these articles and many more like them all around the financial world, reflect how maddeningly traditional advisors and experts are in facing new problems.  It seems that when in doubt - the practice is to fall back on tired old axioms.

Look, this is a new world we are living in and tired old solutions are not going to work.  The average person has a feeling that something fundamental has changed and it is not for the better.  Naturally, they are looking for solutions and just as naturally, they look to recognized experts.  The problem is that the solutions that they offer are always the ones that have worked in the past, I suppose, in the belief that history always repeats itself.  You know, past economic downturns always end up in recovery that all you have to do is invest in traditionally safe places and wait for the upturn.  The thing is, as we are all learning or should be learning, history never repeats itself.  That is just the tired and repetitious mutterings of unoriginal thinkers to justify their repeated forays into mediocrity.

We here are not bound by convention.  We will find a way out of this - that is original and effective.  We will march ahead in strength and purpose.  Bonds, Treasury or otherwise, are a safe place?  Nope.  In the coming inflation they are the last place to be.  As new thinkers, we recognize that what we are living through is the end of what is (in broad terms) a mass delusion in the reliance on paper money with nothing behind it.  We are going to inevitably return to hard money, backed by gold and perhaps other hard commodities and metals to assure its value. Therefore, the safe place to be is in those kinds of assets, not paper assets like stocks and bonds that are sure to fall victim to the coming reset.  Believe it.