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Originally posted by Mr.Hyde
Very well said. It's reassuring to see calmer heads not focused on disaster fantasies like Mad Maxx or The Road. I think people are allowing their imaginations to take their minds to places they are familiar with such as hollywood movies and science fiction novels. With this mindset we limit ourselves to only reactionary scenarios and we prohibit ourselves from viewing the broader picture.
Originally posted by Studenofhistory
Those brokers are both right AND wrong. They're right in thinking that the US financial system ie. the banks, are in serious trouble and that we are likely to see massive bank failures in the not too distant future.
They're wrong about the impact on prices. $30 beer implies hyper-inflation. If you look at history, the only times any country had hyper-inflation was when it's banking system was stable. Why? Because hyper-inflation is caused by exploding credit and in order to have that you need stable banks. If banks are dropping like flies, they will also be taking a lot of their depositers' money with them and that means a falling, not exploding, money supply. Again history gives us examples of what happens when there are massive bank failures. The 1930's are the best example. You had the opposite of hyper-inflation which is deflation ie. dropping prices. So buying tangible assets such as land, gold and silver is the last thing you should be doing because you can't eat land, gold and silver and as far as farming that land, I don't see stock brokers turning into farmers overnight. An imploding financial system means a lack of liquidity. That means that people and businesses that owe money to the banking system via demand loans, which the banks can call at any time, will be forced to sell whatever assets they might have, including land, gold and silver, in order to pay off those bank loans and avoid bankruptcy. That wave of selling will depress prices for assets including stocks, bonds, land, precious metals, collectibles etc.
Even borrowers who have good credit ratings and are able to make their monthly loan payments will be in danger. In the 30's, a lot of perfectly viable businesses were forced into bankruptcy when the banks called in their loans due to the fact that those businesses weren't able to refinance those called loans somewhere else since ALL banks were in the same situation of having to reduce their total loans in order to keep their loan to reserves ratio within mandated limits.
So the best advice to survive the coming Grand Depression is: get out of debt now, keep your cash out of the banks as cash or at worst, short term treasury bills, stock up on vital items in order to get thru short term shortages and don't show off your wealth if you happen to have a lot.
Originally posted by crezo
What use would gold be to anyone, other than the ultra wealthy?
Just wondering as it doesn't seem to make much sense to me in a worse case scenario?
Originally posted by wayouttheredude
These run about $145 to $150 right now. Affordable for most working people to put at least one of them back per month. Then when the value of the dollar drops like a rock off a cliff you can convert one of these to the current value in the depreciated federal reserve notes
Originally posted by GreenBicMan
People that are buying straight physical gold right now are braindead, IMHO. Buying at a premium + at an all time (non inflation dollar) high.
I mean you might catch a quick gain, but you gotta sell gold looking long term. I wish I just would have dumped mine at 1250 but got greedy. Will probably unload if something doesn't happen soon (only .2 units at 1165 average).
Also, for those that think gold is that great it isn't even close to the price adjusted for inflation from back in the 80's. I really don't get it, but the ones that are buying physical I think have a screw loose. But I have been wrong before and will be wrong again.
Originally posted by OBE1
Hi crezo. Do these folks look wealthy ?
Historically the same phenomenon occurred in Weimar Germany, Argentina, Hungary et al. Those with the foresight to convert local currencies into precious metals not only fared best at the level of survival...but they were in position to actually profit when the dust eventually settled...as it always does.
Originally posted by liveandletlive
Your friend is spreading doom and gloom. The government has everything under control. The government is your friend. Remain calm and remember you live in the United States of America. The greatest country on earth. There are people who make sure everything remains stable. You just need to take some time to relax and watch more tv. Maybe spend some money to do your part for our economy. Have a nice glass of water and take a pill to help you relax. You will feel better once you take your mind off of things you dont need to worry about. Have a nice day.
Originally posted by m khan
reply to post by JR MacBeth
Precious metals aren't going to do you a bit of good, as the government has super computers taking data on all your financial transactions. If you buy anything like gold or guns, the govt that has your gps location can send it's thugs to rob you.
Originally posted by Illusionsaregrander
reply to post by mordant1
I agree completely that if you can afford to a plan that took several contingencies into consideration would be best. The food vs gold thing is more for the average person right now concerned and unable to scrape up a large amount of money. If you dont have much, I wouldnt buy gold. I would us the fiat currency you have now to directly buy the things you would be planning to trade gold for in a SHTF scenario.
There is a reason people are told to stock up on non perishable food items before a natural disaster, rather than gold.