Posted on 04/17/2012 7:37:52 PM PDT by Broker
Should our fine financial system cease functioning cash will become a rare and precious medium. Over the years Americans have exchanged paper currency with confidence. Yet, today everyone's cash is a digital value out of hand. Our vast nationwide cash money market holdings greatly exceed any paper currency supply making any Bank run a momentary event. Should the financial house of cards crash, holders of green back US Dollars will be able to engage in trade. Gold hoarders will not know what to do. Credit cards won't work. Checks won't either. If you can't barter, cash will be king. Get cash and stash it. Money markets pay nothing and can't truly guarantee any liquidity when you really need it.
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Who would have ever imagined comparing our economy to Zimbabwe? They have no credit there, pure cash economy. Got wheel barrows.
Taking large sums of cash out will trigger IRS attention, likewise, so will depositing large sums of cash into the bank. You still do need some cash in the event of an emergency now because it is still the most acceptable medium of exchange. Of course, if you run a business, you must maintain a bank account, but with the election looming, it might be safe not to keep too much money in your checking or savings in the event that Hussein wins and the bank runs ensue.
“Gold hoarders will not know what to do”
Sure. Trade it for cash.
There are those that would say you can’t eat cash and you can’t shoot it from a gun so why bother with it.
BTW, I don’t think you understand what a Money Market is if you think it is related to printed currency.
Thank you that comment. Money supply is a HUGE digital phenomena. Paper currency is a minuscule value. America is a paperless economy with participants largely in debt. Getting the picture ?
“Nobody has wheel barrows either .. What ever they are?”
I have 2 of them so I guess i’ll be in good shape!
Printed dollars are simply pieces of paper with pretty designs on them. Bangladesh? Ooh! Kyrgyzstan? Aah!
Some have no zeros, others have many. All are marginal, at best, for personal hygiene.
When the event horizon is reached, the Cleavers will be speechless.
The gold is for wealth preservation,,,, not the day after a crash to expect to walk around using it like normal money. Your normal human prepping (food,,ammo, etc) should allow you to bridge the gap,,, and then a few months later walk into the new paradigm with wealth preserved via gold.
That said,, there is a certain logic to your position. Though the government can print all they want,, or suddenly retire it to be replaced with a the new Amero etc,,, i think there would indeed be a short period where having a reasonable supply of cash is wise.
The knock of gold that its hard to spend for a loaf of bread, is indeed a difficulty **to an extent**. But the risk is just as real that the buying power of your paper money will evaporate in days or weeks.
The smarter thing is to have the wealth you want to bring into the new system which will replace the crashed one, stored in gold. And have some cash,, for lesser crises,, for minor purchases. But the fact remains,,, in a true crash,,, you should not need to be out making purchases. Thats what your prep work is for.
Sadly I know well exactly what money market is and ain’t . Great if you have it, sorry if you don’t . The key difference is liquidity. Money markets are held away which can be problematic.
PS My cash is not interested in your gold unless their Winchester 32 specials.
Have you been drinking tonight?
I have and your posts still don’t make any sense.
Please inform.
Why would electronic cash stop? The Fed just writes another billion in their ledger, buy Treasury bonds, and the virtual currency keeps flowing. Existing cash devalues, of course, but so long as money is injected into the system the cards keep swiping.
A non-panic example of what i would warn you from,, it the Euro. Say you had a shoebox full of francs, marks and lira before the Euro came in. You had a period of time to switch to the new,, after that, they old currencies became worthless.
If there was a deep collapse,, they could say the dollar is over, bring them in for the new currency. (on their post crash terms)
But if a European had a small hoard of gold from 1990,,, it would be just as valuable if they held it right through the change to the new Euro currency. Thats my point,,
That was a slow deliberate switch,,,, not an emergency measure during a crisis. And as for collecting up gold. As long as India and China exist,, in a post crash world, the gold will be be solid. Nothing but a moron turns it in. NOt after the 1930s,,, if you would have kept it then, and then exported it, cashed into a foreign currency,, and then changed that back into dollars, you would have nearly doubled your money.
And the world is FAR more mobile than it was back then.
Very reasoned approach. The organic problem is hardest to plan for. Strategic and tactical plans include all the vehicles for survival. My lesson or knowledge for this great forum remains that we all face truly tragic economic problems.
Sober as a judge amigo. Get your red solo cup loaded up again and go watch Animal House for me
Except the government *can’t* physically print more money than it is right now, nor can it print in higher denominations than it does now. To explain:
The US Bureau of Engraving and Printing prints all US currency. It has only two centers, one in Forth Worth and the other in D.C. Running 24/7, they can only print enough money to support 5% of US daily retail.
Most of the money they print is $1 bills, and *proportionately* fewer $5, $10, $20, $50, and $100 bills. Most $100 bills are shipped overseas for those who must have physical US currency.
So they cannot print any faster. It would take several billion dollars and two years to open even one more high security printing office. Nor can they print higher denomination bills, for the simple reason that nobody could make change for them. There just aren’t enough $100 bills to do so.
What the OP is afraid of is a “currency split”, in which all forms of “virtual money”, electronic money, suddenly experiences hyperinflation, and because it is *not* legal tender, businesses do not have to accept it. Thus everyone demands physical currency that is in tremendous shortage.
Within a day, electronic money could become worthless, and paper money and coins would, after instantly deflating 20 times their face value, (a nickel worth a dollar), it would continue to deflate, becoming extremely valuable.
A similar situation was seen during the hyperinflation of Weimar Germany. Anyone who could get US dollars could live like a king, because dollars kept appreciating in value, compared to the increasingly worthless Papiermark.
If SHTF, you will receive a chip in your hand or forehead that will grant you access to food and supplies. When you get rounded up or placed into govt safety facilities.
Is that Canadian or Mexican cash?
If I had next weeks Wall Street Journal, then I would be able to make all my dreams come true. IF is such a useful preposition for genius. However things just seem to go their own way.
had me going there until he said gold wouldn’t work. Every last respectable store will have a gold exchange counter when tshtf. Every one will accept GAE’s without question.
Sorry, mine is in 100s, 50s, 20s...and silver dollars dimes and quarters...and 9mmLuger, 22rimfire, and 223Remington...and rice, dry beans, pasta, and can goods. I’m expecting a silver dime to be worth the equivalent of at least 5 bucks when it happens, and possibly as much as 20 bucks. I have no idea what the food and ammo might end up being worth.
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