Gold fever sweeps suburbia

LA Times ^ | Feb 21st, '09 | Tiffany Hsu with Tom Petruno

[GOPJ]

The solution is to stay away from the cities but in groups, either by living in a small town-community or sub division, or if you have friends or family that think as you do, form your own small community. Some may think that having neighbors within “shouting” distance means loosing your privacy and freedom, but it’s a price that you have to pay if you want to have someone to help you if you ever need it.

Thanks for the link Travis - there's some strong practical advice in there - advice I hope we never need.

[Travis McGee]

YOur lucky to have her! Ferfal’s piece is very good for introducing fence-sitters to “what if” breakdown scenarios.

[Travis McGee]

If we have deflation, it will not be for long. Our present political class will spend their way out of shortages, and that will certainly lead to hyperinflation after a year or two.

[Travis McGee]

Yeah, that’s a great “first hand look” at a first world nation (at least it was first world for the middle class and above) crashing down to third world almost overnight.

It’s a great essay to share. Very sobering.

[listenhillary]

Once an idea hits mainstream America, isn’t that always the time to bail out?

[listenhillary]

Once an idea hits mainstream America, isn’t that always the time to bail out?

[dennisw]

If we have deflation, it will not be for long. Our present political class will spend their way out of shortages, and that will certainly lead to hyperinflation after a year or two.

Yes it is possible but my case for 3-5 years of deflation is that hyper inflation for the world's premier reserve currency, the US Dollar. is less likely than hyper inflation on the periphery like blogger Fardel's Argentina

Hilary is kow-towing to China right now. She is making promises to them the the US Treasuries they buy will not be wiped out by inflation. The Chinese and others will remember if they are betrayed on such promises and will render judgment on the USD via the markets
This will force us to abide by no hyper inflation policies even if we stray and start to cheat

I predict 3-5 years of stable prices or deflation accompanied by low economic activity..... We just had our inflationary blow off with all commodities crashing. This went on since September 2001. You have to give time for the pendulum time to swing to the other side (deflation) before another inflation is feasiable

"The Reckoning" also says the crash (we are in right now) will be a  deflationary one due to the markets rendering instant judgment on the USD if we try hyper inflation

FWIW a deflationary depression preserves social coherence better than an inflationary depression

[dennisw]

BTW the USD was strong during the Great Depression same as it is today

Do yoy have any idea what silver did back then? Gold went up 33% by order of Roosevelt which actually gave a perverse incentive to gold holders/horders not to obey confiscation laws LOL LOL LOL LOL LOL LOL

After gold was made legal again -—Lo and behold all kinds of US gold coins surfaced. Many kept in Europe while it was banned here

[Travis McGee]

For sure, we need to be prepared for both eventualities, or even for mad max or martial law.

[brydic1]

It is a good thing that those holding US equities had Gold to sell to meet their margin calls today. Otherwise this market tumble would have been more extreme.

[GOPJ]

It was a different time - people voluntarily gave up gold coins etc to the government because they were more trusting then than we are today.