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The US devalues the US$.. $6000 now is $1000..what will you do

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posted on Aug, 19 2009 @ 12:34 PM
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Originally posted by Misfit
About "buying gold and silver".

I still can not grasp that perspective. Buy gold and silver up - for friggen what? If the entire economy collapses, what the hell are you going buy with it?


Probably nothing - but then, the whole economy will likely not collapse. The economy will suffer but we will still have a monetary system and gold and silver will be king.




posted on Aug, 19 2009 @ 12:57 PM
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I liked the question about cashing the 100k check...does he end up with 20k or 102k? My guess would be the lesser amount since the person who wrote the check would have less funds to give, so the CURRENT intended amount would be the amount given, which would fall in the 6:1 ratio supposedly.

Now my questions are these:

If you had 100k cash and desposited it the day after the devaluation would they still give you the 100k?

If you shorted the dollar would your US currency you invested reflect a huge gain, or would they pay you back at a similar ratio?

If you purchased foreign currency, Swiss francs for example and stored them, would the price of the Franc go up, or would the ratio be the same, we'd all just have less dollar?



posted on Aug, 19 2009 @ 01:01 PM
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reply to post by awakentired
 


I've been hearing this particular urban myth since the late 1970s. It surfaces occasionally in the fundamentalist christian circles in connection with the anti-christ and new world order. As I recall, this was predicted to happen in 1977, 1984, 1990 and 2000.

We will probably still be hearing this in 2120.



posted on Aug, 19 2009 @ 01:08 PM
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The US devalues the US$.. $6000 now is $1000..what will you do


.........

That's not how it works.... and even if it did, it's all based on percentages, not valuation.


retake Economics 101.



posted on Aug, 19 2009 @ 01:15 PM
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Originally posted by Rockpuck



The US devalues the US$.. $6000 now is $1000..what will you do


.........

That's not how it works.... and even if it did, it's all based on percentages, not valuation.


retake Economics 101.


Please explain to me how economics work because here is what we are supposed to believe based on what our govt is doing:

We can spend unlimited amounts of funds to bail out insolvent companies and banks.

We can spend unlimited amounts of funds on war.

Don't worry about the FDIC because we will just print more.

Don't worry this won't effect the value of a dollar.

So basically, according to their economic principles, TPTB can do whatever the hell they want, no matter what an economics book says.

You might be right, but they are not playing by your rules.



posted on Aug, 19 2009 @ 01:24 PM
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reply to post by brocket99
 




Please explain to me how economics work because here is what we are supposed to believe based on what our govt is doing:


Using the OP's model of X becomes Y what should we do, let's assume it's a 50% reduction .. take $1 and it's .50 cents.. your 200k mortgage is 100k, gas at $2/gallon is $1, milk at $2 is $1 you made $50k a year, you now make $25k etc etc etc..

Except.. it makes no sense, why would we re-value our currency just to knock a zero off? Percentage wise, we owe the same? A stronger currency is also bad for international trade. Good for consuming, but if you don't produce anything, that can only go on for so long.



We can spend unlimited amounts of funds to bail out insolvent companies and banks.

We can spend unlimited amounts of funds on war.


These will potentially spark Inflation .. which if we used the OP's model $6,000 becomes $9,000 .. not the other way around.

(no that does not make you richer, it actually makes you poorer)



Don't worry about the FDIC because we will just print more.


FDIC has $36billion in the pot, $25 of that is hidden for emergencies. The FDIC is replenished every year by banks that pay a premium for the insurance. If push comes to shove yes, the Gov replenishes the Trust.



Don't worry this won't effect the value of a dollar.


Yes, it will.



So basically, according to their economic principles, TPTB can do whatever the hell they want, no matter what an economics book says.


No, not at all. The US Governments actions WILL lead to high inflation at one point or another.. however the general economy is still deflating, meaning wealth is being lost, if wealth lost is higher than wealth created.. then there is no inflation, there is deflation. We are in a deflation period, while the Financial Sector is in a period of Inflation (hence markets continuously rising) .. eventually the cards come down, the dam breaks, and trillions will flood the Real Economy.. = high inflation.

You just gotta read the right economist's book .. the OP and his link.. meh.. I'd stay clear of that one..



You might be right, but they are not playing by your rules.


Hmm.. unfortunately ... they don't have a choice. Don't elevate the Government to the status of Gods.. they are holding this system together with paperclips and duct tape.. they are not ineffable.



posted on Aug, 19 2009 @ 01:28 PM
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reply to post by Rockpuck
 


I'm in agreement, and certainly don't hold our government in a high regard...but they do actually seem to be getting away with whatever they want.

Using the principles you have laid out, how would you use your current financial portfolio to protect yourself from the deflationary and inflationary effects of what you're pointing to?



posted on Aug, 19 2009 @ 01:36 PM
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Originally posted by awakentired
As the headline says what will you do?

Nothing. I don't have six thousand bucks.



posted on Aug, 19 2009 @ 01:38 PM
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reply to post by brocket99
 


I would evaluate the situation .. it would appear we are still deflating, however once the economic recovery turns around, depending on how fast the Federal Reserve can take cash out of the system and have it destroyed, you could see some major inflationary trouble brewing...

I would look into silver/gold as well as investing in commodities like food, oil and anything that's considered "sensitive" to inflation. One really good thing to get into if you know Inflation is around the corner is real estate.. your mortgage won't change with inflation.. but it's a strict gamble and insecure because the biggest component to inflation is wage growth. If we have a period of really high inflation with stagnate wage growth we will see another deflation/credit collapse (and likely the entire system will come crashing down at that point)...

It's hard to say because there has never been an economic period like this before.. and the FEDS have never done what they are doing before... honest to God, no one knows how this is going to turn out.



posted on Aug, 19 2009 @ 01:39 PM
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Well, I'm inclined to make a statement to the effect that RP did, but he did such a good job I'll abstain.

However, the spirit of this thread is more along the lines of "your government steals $5k from you, what do you do?". In keeping with that spirit I'll say this:

Since, in accordance with the OP, I'm down to about a sixth of what I had, I'll pick, probably not at random, 5 politicians and violently extort $6k from each of them. This brings me to a total of $36k in my pocket, which is now equal to the $6k I had yesterday.



posted on Aug, 19 2009 @ 01:40 PM
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reply to post by stander
 


Yes you do, you liar. In fact, can you loan me $6,000 dollas, I have this really good feeling about a certain black jack table I was playing in Vegas the other week...



posted on Aug, 19 2009 @ 01:40 PM
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Originally posted by stander

Nothing. I don't have six thousand bucks.

lol, if that ain't the truth, there is no truth.

Can't lose what ya don't have. I lose NOTHING !!!!



posted on Aug, 19 2009 @ 01:41 PM
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reply to post by Unit541
 


I don't know if you're the kinda guy to keep close to, or run away from during these hard times.....



posted on Aug, 19 2009 @ 01:45 PM
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Originally posted by Rockpuck
reply to post by stander
 


Yes you do, you liar. In fact, can you loan me $6,000 dollas...

You mean $1000, right?



posted on Aug, 19 2009 @ 01:50 PM
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reply to post by Rockpuck
 


You are right! It makes no sense. Unless you are positioned to profit in the devaluaton. read the link to worldreports. by Christopher Story.

Debtors to the USA absolutley loose in the transaction. 1 TRILLION debt becomes a "managable" cpl hundred billion. Like that matters. Foreign powers getting ripped off like this will retalliate for " our government actions".

Like any American would create debt like this! Yea we have credit cards and we fully intend to pay them off come hell or high water. What our "criminalist" government is doing is unconscionable.

Why are they doing it...read Christopher Story's reports on the Wanta case and Settlements. I won't go into it here..He has written millions of words over the years. Check his background to consider the source.
www.worldreports.org...

Then read what LaRouche has been writing for decades. It is obvious why and how we got here. Not only that but who is keeping US here.



posted on Aug, 19 2009 @ 01:55 PM
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reply to post by awakentired
 




You are right! It makes no sense. Unless you are positioned to profit in the devaluaton. read the link to worldreports


No one would profit.. it simply doesn't make sense..



Debtors to the USA absolutley loose in the transaction. 1 TRILLION debt becomes a "managable" cpl hundred billion. Like that matters. Foreign powers getting ripped off like this will retalliate for " our government actions".


not at all.. if the US "revalued" their currency, all the other World currencies would be devalued as well .. or else the world just dumps the Dollar and says to hell with it, by which point the US would cease to exist.



Like any American would create debt like this! Yea we have credit cards and we fully intend to pay them off come hell or high water. What our "criminalist" government is doing is unconscionable.


It makes 100% more sense to say "inflate" than "revalue" .. You don't value down to pay off debt, you print more money to pay off debt.. called "Monetizaiton" buying our own debt to inflate the currency and reducing the value of debts outstanding. Which is PRECISELY what we are doing!



posted on Aug, 19 2009 @ 01:59 PM
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As long as they devalue my debt as well and don't expect me to still pay the 'face value' balance of said debt. If they do this they will need to understand the repercussions that will resound throughout this country and the world. Let alone the really pissed off people that won't even be able to afford to buy a single loaf of bread for under $8!



posted on Aug, 19 2009 @ 02:01 PM
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reply to post by uaocteaou
 

I said nothing about our personal debts. That aspect eludes me in the research. I suspect that it will remain unchanged. I have this opinion simply because the bankers will get their cut no matter what is done nationally or internationally.
Yea it is reason to revolt for the national currency being devalued while your debts remain full valued, but think about it ...how else would the government obtain banker support for the excercise?

By selling out our "middle class" to the bankers the "leadership" or oligarchs start anew and continue the march to the infamous NWO.

READ the LINKS PLEASE. Research the C. Story archives ..searching "settlements" .. for a reality check.
Then LaRouche for a classic model on colonial history.
Celente is nothing more than a master puzzle solver.



posted on Aug, 19 2009 @ 03:14 PM
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Originally posted by Misfit
About "buying gold and silver".

I still can not grasp that perspective. Buy gold and silver up - for friggen what? If the entire economy collapses, what the hell are you going buy with it?


You buy silver and gold because that is what is SUPPOSED to back the US $. Even though more money is printed, it is only worth the gold backing it up. If you don't have more gold, the paper becomes worth less (worthless).

No matter how worthless the paper is, the silver and gold will ALWAYS have value. If you invest in precious metals, you sell off your shares as needed to buy what you need and you have more paper in the long run.

In 2002, I bought gold when it was under $300 an ounce. NOW that gold is worth nearly $950 an ounce. It is predicted that gold will be worth over $2500 an ounce in the near future. That is nearly 10 times the value of the dollars I invested in 2002.

If you invest $9,500 in gold now, it should be worth $25K either the end of 2009 or in 2010 (not certain how accurate that prediction was back in '06 of '07, but it also prediced $900/oz in 2009).



posted on Aug, 19 2009 @ 03:26 PM
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Originally posted by brocket99
My guess would be the lesser amount since the person who wrote the check would have less funds to give, so the CURRENT intended amount would be the amount given, which would fall in the 6:1 ratio supposedly.

Now my questions are these:

If you had 100k cash and desposited it the day after the devaluation would they still give you the 100k?

If you purchased foreign currency, Swiss francs for example and stored them, would the price of the Franc go up, or would the ratio be the same, we'd all just have less dollar?


For the record, I'm a SHE.


And your answer/questions are what I'm trying to use to figure out what to do. If I cash the check before 'bank holiday' and keep the cash, then when the 'holiday' is over, I deposit the cash and still have $100K plus whatever has been left. But I would wait a while to deposit the money and do it in smaller increments.


OR I buy the Swiss franc because it would take more US $ to equal the Swiss franc. Or maybe I'd just buy Yen.



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