Posted on 11/01/2018 8:53:05 PM PDT by NRx
Ok; now you’ve got some gold coins.
Where do you spend them; post crash?
Most of the drop in gold during the first Reagan years was due to the collapse of inflation. Gold and most other hard assets were being hoarded as inflation hedges. We don’t have the background of double-digit inflation in order to have a similar collapse.
But what could set off a good sized drop in gold prices is a rise in real interest rates. When rates are close to zero there is no opportunity cost in owning gold- you aren’t earning interest on cash balances anyway so you may as well hold gold. A booming economy can change that by increasing the demand for money and driving up interest rates.
I read an article in a jewelers magazine that the automotive industry found a cheap alternative to platinum for catalytic converters.
at 15ish an ounce, silver is a great hedge ......
However...Ultimately the two precious metals that will hold us together are lead and brass.
Ok; now you’ve got some gold coins.
Where do you spend them; post crash?
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Same place that I spend them now, only just for necessities.
How that takes place is another story.
It all depends on The International Monetary System which has failed several times in the past-not the end of the world. The IMF/G20 types get together and decide what they are going to do. When the British Pound sterling went down, the US dollar was waiting in the wings.
So it depends on what the new system looks like. I consider silver, gold, and land to be hedges against inflation.
I consider an investment portfolio to have land, silver/gold, cash, stocks, and food. Yes food - it doesn’t ever seem to get cheaper.
So when there are sales, I stock up on what we eat and I buy as much as I can use by the expiration date. I buy veggies by the case as well as coffee by the case and so forth. It’s cheaper and in case of electrical outages which we have-we have plenty to eat. And in case the New Madrid goes off again, I’ll get through with out FEMA, I hope.
I consider the gold, silver, and land to be inflation hedges, as I said. The cash is a hedge against deflation.
Keep some cash on hand in case of ATM/Bank down time, and to pay essential bills - like the electric bill and your mortgage payment, if you still have one.
Most recently, G20 and IMF were looking at SDRs based on a basket of currencies instead of US dollars for the world reserve currency. This “money” would not be available to citizens - we would still use USD as our currency just as Mexicans use the peso.
And speaking of the peso, the Mexicans have already started monetizing Silver. It is running parallel with the peso and is revalued daily. One of the S. Western states had bills in their state legislature up a while back to do something similar.
Given the vast QE increase of money supply by Bernake and Yellen, once the economy goes full steam, we could return to double digit inflation like we did during the Nixon years.
So maybe I’ll cash in an oz of gold to get dollars to pay the property taxes, or maybe by then they have returned to using gold as currency(not likely JMHO).
Maybe I won’t have to use it at all, and my kids can inherit it to help make them more financially secure.
In other countries, in addition to the regular precious metals dealers, there were kiosk type set ups that people went to close to their stores where they exchanged for currency to buy food or whatever as fast as they could.
A currency collapse doesn’t mean civil war or TEOTWAWKI. Remember that we went off the Gold Standard, abandoned the Bretton Woods system, and Nixon closed the gold window.
Those could all be called collapse of the International Monetary System. Life went on. The sun came up. People bought and sold what they always bought and sold.
It is my belief that the world governments have so much debt, that they will either devalue currencies or follow inflationary policies-in which case hard assets are a hedge.
Check out Selco or Ferfal for more dire situations in Bosnia and Argentina. They both have blogs writing about what happened in their countries and advice on what might help people survive similar situations.
Yes. The auto industry replaced platinum with palladium, which is now almost as expensive as gold, instead of 20% the price of platinum.
Had we not gone off the gold standard,, Americans could not be lulled into our long slow decline of fiat money, expansion of the size of government and its regulations strangling business, and in consequence, the raising of the Iron Curtain in China where slave labor kept our prices artificially low.
Johnson and FDR created the two hungry mouths of socialism, SS and Government regulated medical pricing, but Nixon and his Prussian alter ego HK fatally stabbed us in the back. Prior to those pragmatists, Americans well understood that doing business with countries whose citizens are enslaved is antithetical to America's moral code. Once the compromise was made to send our manufacturing over to the hungry, hard working people of China, we lost our moral compass. And here we are today watching all the relativism play out.
I am always struck by the fact that the Federal Reserve and many economists claim that 2% inflation is “healthy,” and that it is a “goal” to be strived for.
The idea that doubling prices every 36 years is somehow “healthy” is completely bizarre in my little universe.
They see a sovereign debt crisis coming.
If our income goes up with the inflation rate; then we get paid more while things cost more: a net zero game.
However; as we get paid more; more of us slide into a higher tax RATE; thus the gummint gets more of our money.
Quite sneaky!
Read my above response.
But; you are now paying off your home with cheaper money than when you first mortgaged it.
one “troy” ounce is 31.1 grams. verses an “avoir” ounce which is 28.35 grams. there for there are 14.4 “troy” ounces in an pound(avoir). verses 16 “avoir”ounces is an imperial(avoirdupois) or international pound. a “troy” pound is 12 “troy” ounces and was abolished by Britain as an official weight measure in the 1800s and was rarely if ever used in the US.
“It was a solemn promise.“
From politicians. It’s worth nothing.
L
the article says metric tons
did my reply really need the /s ?
“did my reply really need the /s ?”
Sorry. But I’ve had actual conversations with people that went just that way. “But they promised it to me!”
L
I tried to wrap all the ones I have heard. Here are a few more.
Sacred obligation
The intergenerational trust
Lockbox
I sacrificed
My favorite is “social contract”.
But they never seem to be able to produce a signed copy of it.
Funny that.
L
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