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To: monocle

Bear in mind I am sitting here in my comphy chair imagining the scenario of a total financial melt down. If we were discussing solely inflation, I might buy your logic. Let’s say I have a $1500/mo mortgage. (I wish) If I’ve suddenly got no income, I must pay that from savings. If my mortgage were my only cost of living, which it isn’t, I can last 16 months. If I have a gold coin or two, and not loose them in boating accidents, maybe I can last 20 months. I have enough dry and shelved goods to feed the family for 3 months. After that I either starve or stop paying the expense on a worthless (in crisis time) asset. If I stop paying 3 months earlier, I can feed the family for 16 more months before being totally broke, destitute, and homeless. So, stopping the payment when the crisis hits buys us 19 months. We might be homeless in 3 to 6 months, but, I’ll also own the Jeep. So we’ll be fine until we can’t buy food :) If I understand the author, he would say put all current savings into inflation insurance bars. By his own charts, that would only buy me one year, just paying the mortgage, or buying food. It might buy us a bit more time, but not much as far as I can see. Now if I had only bought 50 to 80 of those inflation bars back when I was 7 years old and they were still $20 each, THEN we’d have a solid plan and keep the house when the crisis comes ;)


12 posted on 09/11/2012 12:52:50 AM PDT by ri4dc (47544 - The one number in Obama's background that really affects our future.)
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To: ri4dc

Most hyperinflationary episodes are not that longlasting. Germany’s 1923 hyperinflation lasted about nine to ten months. More recently Zimbabwe’s hyperinflation lasted about two years. It is interesting to note Zimbabwe’s inflation was to a great extent caused by the lost of production as a result breaking up white owned farms.


14 posted on 09/11/2012 1:43:15 AM PDT by monocle
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