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Old 06-01-2020, 11:21 AM
 
1,910 posts, read 708,760 times
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At my age I view much of what happens politically, socially and economically as beyond my control, sort of like the weather.
I have diversified to the best of my ability with RE, high quality possessions (including firearms), investments in bonds and equities, physical gold, antibiotics (from Chindia prior to the pandemic), and parmesan cheese (commodities!).

I too wonder what other folks are doing to prepare for the future, given an economic system far more fragile than we thought.

Last edited by PamelaIamela; 06-01-2020 at 12:27 PM..
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Old 06-01-2020, 01:30 PM
 
1,074 posts, read 855,822 times
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Quote:
Originally Posted by TimAZ View Post
No, the Fed does not “print” money (not yet anyway). The Fed controls the supply of money to some extent by setting reserve requirements at banks, monetizing debt, and it can control short term interest rates. In 2008 I remember watching Fed Chairman Ben Bernanke testify to Congress. He said that absent any controlling law, he believed the Fed had a wide latitude to intervene in the financial markets — basically daring Congress to stop him. Congress never put any restrictions in place, so today in the Covid crisis we see the Fed acting in extreme fashion.
Reserve requirements for banks - Set to 0.
Monetizing debt (aka digital 'printing') - Several trillion in the past few months and counting.
Short term interest rates - Set to 0.

Obviously these things did not positively effect employment. Arguably they will have a detrimental effect on price stability (less goods and services but huge increase in monetary base is likely to lead to unchecked inflation if the velocity of money is constant or deflation if money goes into the wrong hands an collapses money velocity). The one thing the Fed did accomplish is propping up stock and bond markets which they have adopted as their mandate. Can you really blame them for changing their mandate though? The crisis isn't really something monetary policy can address. They might as well do something and make their friends rich in the process.
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Old 06-01-2020, 01:38 PM
 
1,074 posts, read 855,822 times
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Quote:
Originally Posted by PamelaIamela View Post
I have diversified to the best of my ability with RE, high quality possessions (including firearms), investments in bonds and equities, physical gold, antibiotics (from Chindia prior to the pandemic), and parmesan cheese (commodities!).

Nice diversification. Loose the antibiotics (your only going to wreck your gut and breed resistance) and add Bitcoin. Its arguably a better hedge than gold in the event of a monetary disaster. The supply is also more constrained and its much easier to store and make transactions with.
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Old 06-01-2020, 09:19 PM
 
1,910 posts, read 708,760 times
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Originally Posted by Pfalz View Post
Nice diversification. Loose the antibiotics (your only going to wreck your gut and breed resistance) and add Bitcoin. Its arguably a better hedge than gold in the event of a monetary disaster. The supply is also more constrained and its much easier to store and make transactions with.
Thanks.
The antibiotics are not for regular consumption but for emergency use, like UTi, sinus infection, etc. and I have a cast iron stomach.
I bought some Etherium a while back but the taste of cryptos didn't suit me as I don't care for the unstable valuations and the low bar to entry of competitors. In the end all money is based on the psychology of faith and game theory.
I haven't had a Jesus moment for any of them yet.
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Old 06-02-2020, 08:05 AM
 
Location: Henderson, NV
6,632 posts, read 6,725,151 times
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Quote:
Originally Posted by PamelaIamela View Post
Thanks.
The antibiotics are not for regular consumption but for emergency use, like UTi, sinus infection, etc. and I have a cast iron stomach.
I bought some Etherium a while back but the taste of cryptos didn't suit me as I don't care for the unstable valuations and the low bar to entry of competitors. In the end all money is based on the psychology of faith and game theory.
I haven't had a Jesus moment for any of them yet.
I’m with you. One of my best friends isn’t, he’s a big crypto investor (and he’s a doctor lol), but maybe I’m just too old school. Of course, in reality you’re right, anything is only “worth” what value we assign it. Even a dollar is only worth anything because someone else agrees to accept it and give us goods or services in return, because they have faith they can turn around and use the dollars we give them to do the same, etc. Gold has always held value throughout civilization because it’s shiny. Haha just joking... kind of

The whole crypto thing to me seems a bit silly, but I mean, doesn’t make it a bad investment just because I find it silly. I guess it’s a comfort level thing. Most of my net worth is in tangible real estate assets diversified from apartments to office complexes to office buildings to hotels to my own house. There are of course enormous risks there too, like at present it’s not a great to be in hotels, but usually if you hold solid assets and aren’t overextended you’ll come out the other end fine. Our office leases all have 8+ years left, none of the tenants are at any risk of default, and in one case it’s the company’s HQ (of 34 offices). I think all you can do in general economically is diversify and prepare for a variety of situations. I’m fairly cautious so I’ve moved more money into cash accounts and some into stocks.
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Old 06-02-2020, 09:30 PM
 
Location: Heart of flyover America
643 posts, read 255,042 times
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Crypto currencies are problematic for many, many reasons, but perhaps their biggest issue is the immensely complex and high-tech networks and infrastructure needed to sustain them. If things get very bad in this country those could easily fail, completely or partially.

All paper assets (including real-estate) will be devastated in this crisis. At this point, the precious metals are the only way to protect yourself from being financially raped. I think silver has tremendously more upside potential than gold. Yet it is completely neglected and unloved at the moment...
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Old 06-03-2020, 10:38 AM
 
Location: Guadalajara, MX
7,492 posts, read 3,644,311 times
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Quote:
Originally Posted by Taggerung View Post
Prepare yourself for the unavoidable currency collapse.
When?

Surely you have a date in mind since you're telling me to start preparing. We've had people in these forums saying currency collapse is around the corner for over a decade, so a wee bit jaded with the random someday horizon thing.
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Old 06-03-2020, 11:09 AM
 
41 posts, read 8,894 times
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Quote:
Originally Posted by lieqiang View Post
When?

Surely you have a date in mind since you're telling me to start preparing. We've had people in these forums saying currency collapse is around the corner for over a decade, so a wee bit jaded with the random someday horizon thing.

Do you ever actually provide any useful information or do you just post critical remarks about others?
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Old 06-03-2020, 11:18 AM
 
Location: Washington Park, Denver
8,082 posts, read 7,505,926 times
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Quote:
Originally Posted by Neo The One View Post
Do you ever actually provide any useful information or do you just post critical remarks about others?
I think wondering when the collapse is coming is reasonable question. People love to make broad statements of doom with no time horizon.
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Old 06-03-2020, 11:26 AM
 
41 posts, read 8,894 times
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Quote:
Originally Posted by SkyDog77 View Post
I think wondering when the collapse is coming is reasonable question. People love to make broad statements of doom with no time horizon.
Then he should offer some useful commentary on why a collapse is not coming instead of just constantly going around saying critical remarks here without any substance. Disagree and then expand on why you disagree.
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