Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Money will be totally worthless in a social collapse so don't save money. Instead acquire food stocks, medical supplies, hand tools ,repair parts etc. that can be either used or traded.
An example of my advice is playing out now in Venezuela.
First, this is not Venezuela. Comparing a first world nation with a third world nation is like comparing apples with tangerines.
Second, the US dollar is the world's reserve currency. All other currencies float against it. The Bolivar is a crap currency compared to ours.
Third, Venezuela is being run by a corrupt communist dictator who has made numerous errors in economic policy. As bad as our own government sometimes gets, as corrupt and incompetent as our elected official often are, they have not yet sunk as low as those of Venezuela.
In general, I feel that keeping a good supply of food, liquor, seeds, ammunition and fuel is a good policy for one's own self-sufficiency, US cash is something that is still recognized widely as having value, and should also be stored (in case ATMs are down). The velocity of money is something you need to research before making a statement about the perceived value of our currency. Right now, and for a long time, the velocity of money is very low, indicating that the perceived value is still quite high.
First, this is not Venezuela. Comparing a first world nation with a third world nation is like comparing apples with tangerines.
Second, the US dollar is the world's reserve currency. All other currencies float against it. The Bolivar is a crap currency compared to ours.
Third, Venezuela is being run by a corrupt communist dictator who has made numerous errors in economic policy. As bad as our own government sometimes gets, as corrupt and incompetent as our elected official often are, they have not yet sunk as low as those of Venezuela.
In general, I feel that keeping a good supply of food, liquor, seeds, ammunition and fuel is a good policy for one's own self-sufficiency, US cash is something that is still recognized widely as having value, and should also be stored (in case ATMs are down). The velocity of money is something you need to research before making a statement about the perceived value of our currency. Right now, and for a long time, the velocity of money is very low, indicating that the perceived value is still quite high.
A hundred years ago one hundred of these would buy a new Cadillac. Today, you'd get two for the same price.
". . .Federal Reserve notes are not redeemable in gold, silver or any other commodity, and receive no backing by anything. This has been the case since 1933. The notes have no value for themselves, but for what they will buy. In another sense, because they are legal tender, Federal Reserve notes are "backed" by all the goods and services in the economy."
. . . . .
Of course, this snippet fails to disclose how CONgress can use your labor and goods to back their worthless IOUs.
Remember, private property cannot be taken for public use without JUST COMPENSATION. [Fifth amendment]
Ergo, if ALL the goods and services were claimed by the government, they'd owe the owners of all that labor and property JUST COMPENSATION (in lawful money - gold / silver coin) ... which is an impossibility.
. . . .
OR private property was abolished in 1933, so that any "taking" need not be compensated.
From the Communist manifesto:
"In this sense, the theory of the Communists may be summed up in the single sentence: Abolition of private property."
War and Emergency Powers Acts
"A majority of the people of the United States have lived all of their lives under emergency rule. For 40 years (as of the report 1933-1973), freedoms and governmental procedures guaranteed by the Constitution have, in varying degrees, been abridged by laws brought into force by states of national emergency."
FREEDOMS ... GUARANTEED BY THE CONSTITUTION ... HAVE BEEN ABRIDGED BY LAWS ... UNDER EMERGENCY RULE ...
Welcome to the People's Democratic Socialist Republic of America.
Where everything not mandatory, is licensed, taxed, regulated or forbidden.
And since it was done voluntarily, no harm - no foul.
(You do know that no law compels participation in national socialism / socialist insecurity, right?)
A hundred years ago one hundred of these would buy a new Cadillac. Today, you'd get two for the same price.
I was not addressing inflation. All fiat currencies inflate.
I was addressing velocity of money, and perceived value. Try going into any dealership, and buying any vehicle, with double eagles. They won't take them. You'll have to exchaange them for fiat first. So, what's the use of carrying those around?
FEDERAL RESERVE NOTES HAVE BEEN WORTHLESS SINCE 1933.
LEGAL TENDER STATUS http://www.treasury.gov/resource-cen...al-tender.aspx [indent] ". . .Federal Reserve notes are not redeemable in gold, silver or any other commodity, and receive no backing by anything. This has been the case since 1933. The notes have no value for themselves, but for what they will buy.
Awww, we all know that the Federal Reserve isn't federal, and has no reserves. Most of us have read The Creature From Jekyll Island. But what is money? It's a medium of exchange. Gold is not money, nor is silver. Not right now. They once were, and will be again, probably. But if you cannot take your specie into a store and walk out with the goods you want, then it isn't money.
And all the verbiage in the world won't change that.
I was not addressing inflation. All fiat currencies inflate.
I was addressing velocity of money, and perceived value. Try going into any dealership, and buying any vehicle, with double eagles. They won't take them. You'll have to exchaange them for fiat first. So, what's the use of carrying those around?
Gold protects me from government. It's irrelevant whether I need to exchange them first. Should inflation be so rapid that the value of paper will decrease before I can return to make my purchase, gold will be used as currency just as it was during the German and Hungarian hyperinflations.
I am not a Keynesian so I do not accept velocity theory. I'm not in the mood to write ten pages so this little snippet must do.
Ludwig von Mises said "The main deficiency of the velocity of circulation concept is that it does not start from the actions of individuals but looks at the problem from the angle of the whole economic system. This concept in itself is a vicious mode of approaching the problem of prices and purchasing power. It is assumed that, other things being equal, prices must change in proportion to the changes occurring in the total supply of money available. This is not true."[5]
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
