Posted on 10/26/2009 10:07:35 AM PDT by TigerLikesRooster
http://www.zerohedge.com/article/marc-faber-death-fiat-money-dollar-will-go-value-exactly-zero
One thing that always confuses me with this sort of stuff: If I owe $100k on my home and have monthly payments of principle and interest totaling, say, $500 a month, does this mean I will be getting a heck of a deal and I should buy as much stuff as I can on credit based on dollars that will be worth “zero”.
BTW, I say this often: “Zero” is a very special number. You cannot divide by zero and other numbers are destroyed by it if you include it as a multiplier.
Just sayin’.
I’ve been sayin’ since 2006 that if this gets as bad as the GD, people should take note that what got us out of that was WWII.
There is a lesson there.
When the paper money becomes worthless whoever is President, regardless of party, will declare a national emergency and the government will confiscate the private gold and silver. Perhaps gold and silver proof coins issued by the US Mint will be allowed for their numismatic value.
Ditto.
Don’t forget the “other currency” of the future -
brass, lead, powder & primers
in various configurations.
Glad you folks are preparing. I’ve gota bad feeling it going to get nasty. Soon.
Marc - make you a deal, 2 for 1, I’ll buy all of your dollars at half price today. Delivery date in 12 months. Game?
I heard Glenn Beck say on his radio program this morning that who-ever it was ( he said who, I don’t remember) that made the original 10 forecast for the collapse of the dollar had revised it and it is now 3 years.
I just got done reading the book, Patriots: Surviving The Coming Collapse and am now worried that my 'hide-out' here may not be as defendeable as I once thought.
He has some good arguments BUT last year has shown you cant count on any continuous trend, 1981 too. After Inflation reached a certain point under Bush 2006-2007, Bernke started putting on the breaks and the car went off a bridge 2007-2008. No one could have predicted devaluation-inflation-crash leading to run to the dollar.
Carter was forced to put Volker in to kill the inflation, and the economy. So we had inflation, unemployment AND high interest rates,
Plus to have inflation beyond stocks and gold you have to have some growth, so Faber cant tell you exactly when this will happen, or Schiff either.
The Ruble went to zero in the post USSR Russia.
Do you what the phrase “rhetorical question” means?
No plan is perfect. We all do the best we can with what we have to work with.
Thinking about and preparing for emergencies now puts you in a better position to deal with the coming collapse.
What about neighbors? Anyway to enlist their help with security matters?
Which is why you should be stockpiling lead. There has been a bit of a shortage for it in certain denominations (calibers).
Look for the phrase “US Dollars or Equivalent” in your mortgage contract.
If the US Dollar becomes worthless, it will probably be replaced by a “world currency”. This is one of the goals of the auto-racist, American culture hating left - to remove the American currency from dominance in the world.
“currency” with intrinsic value - how quaint!
I wonder the same thing, too. If the USD goes Zimbabwe, meaning it costs a million dollars for 3 eggs, won’t I be able to pay off my mortgage with a week’s pay?
So, if my mortgage payment is $500, but it is to be paid in “World Dollars” (WD) and one world dollar is now worth $100 USD, My monthly payment would be 5WD. Now imagine that real inflation took place in the US, where people’s wages have somewhat increased as the dollar lost value (marginal stagflation), so that the average person makes, say, .5 WD oer hour, it would be a boon to anyone with a fixed rate home loan.
In my case, if I were perfectly average, it would mean that I make .5 WD per hour, and my house payment is 5WD per month. My house payment would be covered in ten hours.
I know this is grossly oversimplified, but does this make sense. And to add to this, even if there IS stagflation to a greater degree, where my income is only .25WD per hour, it is still only 20 hours, which is half a week’s pay.
Looks like real estate may be a good investment (once the crash is clearly complete, as demonstrated by a long term and SLOW recovery in prices). At least it is very unlikely, thanks to the constitution, for the government to confiscate real estate in the way they try it with gold.
Then again, they’ve never tried it with silver...
>>If the USD goes Zimbabwe, meaning it costs a million dollars for 3 eggs, won’t I be able to pay off my mortgage with a week’s pay?<<
Why a whole week? :)
Any numismatic or semi-numismatic coins aren’t subject to confiscation. Bullion coins are. That’s the reason they often are less expensive than the numismatics, that generally are out of print, and have been awhile, and if they are foreign coins too, that makes a difference. Generally numismatics cost more because they are older, out of print and have not only gold value but collector value as well.
To know the difference, if you can buy a coin without having to give your social security number when you purchase it, it’s a private sale, it is numismatic, it is NOT bullion, and it will not be subject to confiscation.
For example if you buy brand new gold coins from the mint, those are bullion coins and they will have a record of who you are and how much you have, they will be registered to you. If they ever want them back they know you have “x” amount listed to you. However if you go to an antique store and they have an old silver or gold coin there and you buy it, or if you go to a dealer that sells old coins for collectors, those are not bullion, they are numismatic and they can be sold privately without recording who has it, and these are the ones you want to buy up. They will cost more but you’re paying for additional value and the ability to keep them from being confiscated.
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