Originally posted by Vitchilo
I'm buying land, guns, ammo and dry food instead.

At least with food, if all don't go to hell, you can eat it. Gold, if the price crash because of government manipulation, you can't do anything with it.

Amen brother.

Gold is a place holder for value much like paper money is. Its only valuable because we say it is. Other than ornamentation and use in electronics etc., what does it do for you?

Land, and not just any land, but arable land that can grow food, is inherently valuable to humans. Because we need food to live, but we dont need gold to live.

If I were really worried, I would buy some nice farmland, especially while it is very devalued, and hold onto it. It will always have its inherent value as a food producer, no matter what the rest of the worlds financial instruments do.

Let's assume the Fed is buying all the treasuries. Wouldn't that be a best case scenario? Doesn't Congress have the ability to abolish the Fed and all the debt we owe them? Basically we pay them and then they return the money to the treasury. Zero sum game.

What is happening is already monetization but under a different name. I think it is doubtful that it will cause much inflation and I am even more sure that it will eventually revitalize the economy. Inflation will be timid regardless of the money the government spends. It won't get out of control until the Fed raises rates significantly. Raising the cost of money only raises the cost of doing business, which is what really sets off inflation in most instances.

You will find that ALL economists agree with mnemeth. Just ask him. BTW...this thread is nothing new and it's been posted 100's of times...I've posted similar ones myself A YEAR AGO.

I actually think some people want the system to collapse. I however DO NOT. I still think things can be fixed if we get a handle ON OUR TRADE POLICIES WHICH SUCK.

Our imports/exports are killing our country economically...but Mnemeth disagrees!! and ALL economists agree with him.


[edit on 11-3-2010 by David9176]

No.
Euro is going slightly down and it probably will stabilize in a lower price than it used to be. No dollar collapsing imminent. I believe no dollar collapse at all unless China pulls something funny, which I seriously doubt it.
The next crisis will be energy crisis (again)

dude, when the dollar goes, it will be Mad Max Beyond Thunderdome time.

hahaha... I thought I told you. I've got first dibs on the Thunderdome plus I'm armed, so back the freak off!

Originally posted by mnemeth1


The government will begin confiscating gold once again as they did back during FDR’s reign of terror. Only this time I don’t think the people are going to let the government take it without a fight. The people are not so stupid as to be duped like they were last time. Things are about to get nasty – real nasty.

Here I thought that was why cash for gold started. I think people in power realize people are not just going to give up their gold this time around. This time they are trying a different trick. I wouldn't be surprised if a lot of people have sold their gold jewelry to one of these programs, since they need the money.

Originally posted by mnemeth1

Lets say I take out 10,000 in credit debt and buy 9 gold bars.

Then the dollar implodes.

I sell 1 gold bar for 100,000.

I now pay back the 10,000 i just spent.

[edit on 11-3-2010 by mnemeth1]

At that point in time, exactly who is going to have $100,000? Is anyone? If so, do you really think they are going to buy that gold bar knowing that it is not going to be worth much more in the future? Also knowing that no one else can buy it.

More than likely we would go back to some type of barter system. I can see gold being used to buy and sell in very small amounts. It would be better to have gold dust as they did back in the west, or small gold coins/disks that are worth less than a fraction of $100,000. You really don't want to have to use a $100,000 gold bar to buy say $50 worth of food do you. Because you can't find someone who can pay the full $100,000? You might be able to buy a large amount of farm land with a decent house for that gold bar. Then you can produce your own food, if you know how.

Yeah, the day will come - the dollar will fail - we will be unable to service our debt - hyperinflation will be the order fo the day. It has happened many times in the past to other countries so there is no rationale to believe that somehow the US is different or unique.

I see no reason for holding physical gold. I can't wear it, eat it, seek shelter in it etc... It is likely to become just another very heavy mineral. Nope, my money is in guns, ammo, medical gear, dried foods etc... I will have plenty to barter with and intend to barter only for things that sustain me. Gold ain't one of 'em!!!

PS> I'm no economist, but I don't think you need to be to read the writing on the wall.

My friends and I have noticed this about 2 years ago.

And we've come to the conclusion that the government is intentionally tanking the dollar.

Why would they do this?
One answer would be to get back US Dollars that are in foriegn hands.
Secondly to lower the price of American goods so that other countries would buy more goods.
Thirdly since labor would be cheap again we'd get more people working here. We'd increase the labor market again.

The tanking of the dollar. Probably won't be that bad. We'll have a rough patch. But things will stay the same. And we'll end up being stronger than before.