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To: Mamzelle; DEADROCK
What happens--two words. Bank Holiday. The banks will close to avoid runs. They won't answer phones, you cannot transact business, you find it suddenly hard to buy anything. Now imagine the domino from there. It's good to have a few week's worth of cash to buy gas and groceries.

Thanks - that is a valid opinion and I appreciate it.

I agree that yours is a probable outcome if "The Disaster" happens. The only problem I see is that most of our transactions today are not cash anyway - they are electronic. The banks could "close" - but then people will basically stop paying bills like their mortgage, car payment, insurance, utilities, water, sewer, property taxes, etc - because most people do that on-line and electronically these days. That is a major reason why the US Postal Service finds itself bankrupt with little revenue coming in.

Now - stores may say they will no longer take credit or debit cards, and only cash. But, the problem is we do not suffer from a lax of green paper money. Thanks to Bernake, Geitner, and Obama - we have Trillions and Trillions of newly printed paper money.

If the banks are forced to release the cash and the Fed prints even more of it, we will have hyper-inflation. If they don't release cash, and all electronic transactions (to include credit cards) are abolished during the "crisis" - we may have deflation, or something else.

The problem I have with these doomsday websites with the big headlines is they never give details like yours. The conversation always goes like this:

ZeroHedge: "Things are going to be really awful!!!"

You: "How awful?"

ZeroHedge: "Really, REALLY awful!"

You: "When?"

ZeroHedge: "Let me show you my 42 minute PowerPoint presentation!"

You: "I don't want to see your PowerPoint presentation - just tell me when you think this Really Awful thingy will happen, and what specifically you think the economic disaster will entail."

ZeroHedge: "Subscribe to my Newsletter!!!!!"

15 posted on 06/02/2012 10:40:51 AM PDT by SkyPilot
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To: SkyPilot
Well, have some cash for the first few weeks, like I said.

Even the pups at Zero have no frame of reference for how bad it can get. They have lived in too affluent and urban life for their whole lives.

I think silver coins are a good thing to have, but I'm not recommending you sell all you have and buy silver. If every home had a few hundred in silver coins, that would go a long way toward ameliorating the hysteria that will ensue.

16 posted on 06/02/2012 2:36:56 PM PDT by Mamzelle
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To: SkyPilot
...we have Trillions and Trillions of newly printed paper money.

Unfortunately, that has not happened. All of their printing presses have been running at capacity. They cannot just print more $100 bills, since they would lack the 20's to make change. As other Freepers have posted. What they have done is create more electronic debt. Not more physical paper debt. They are in the process of inflating a giant electronic debt bubble. When that bursts, electronic debt and electronic cash will be worthless. Similar to an EMP device going off over the US. Only this EMP terrorist device is Made in DC.

19 posted on 06/02/2012 4:25:52 PM PDT by justa-hairyape
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