U.S. Will Default On Its Debt

TMO ^ | 4-4-2011 | DailyWealth

[Las Vegas Ron]

Good job FRiend, you’re ahead of me.

I’m well stocked food and ammo wise, have to work on the water though.

[Joe Miner]

Thanks for the recommendation, found a copy on the web it if anyone else is interested in reading it:

When Money Dies

[TheRightGuy]

Right now, the melt value on US nickels is over $0.07.

I stand corrected, but still, 140% of face is not very sexy compared to pre-65 US silver coins going at 2700% of face.

[Squawk 8888]

IIRC US nickels are made of copper/zinc, while Canadian nickels are nickel-plated steel. Canadian nickels were 4.54 grams 99.9% nickel until 1981, 4.6 grams 75% copper/25% nickel from 1981 until 1999.

[Joe Miner]

Fixed link:

When Money Dies

[PeterPrinciple]

His take was any major crisis involving insolvency would lead to a much bigger role for the federal government in the economy. What would emerge would be a nationalized banking and credit system (probably disguised as one in which the feds were just ‘stake holders’).

---

This is the process we are in now. the counter to this is will be the states standing up. There are so many permutations to what can happen.

The only think I can safely say is there is a crap storm coming and there is no safe port in the storm.

[MeganC]

The Fed doesn’t even have to print the money anymore. They just type in some numbers on a computer and call it ‘money’. I recall that of the $19 trillion dollars in existence only about $177 billion is actually in the form of currency.

[MontaniSemperLiberi]

Much of the debt is short term debt and hence can’t be rolled over unless long term interest rates are low. Long term interest rates will be high if there is a substantial risk of currency devaluation or outright default.

[MontaniSemperLiberi]

I have about 1/3 of my stock investments in funds that track overseas indexes.

[Centurion2000]

But is that all I can do? Aren't there some INVESTMENTS I can be making???

Sure, silver is one of them. Here's a one year performance chart.

$SILVER

[sauropod]

mark

[He Rides A White Horse]

Major corporations would either come under GM type fed control if they faltered or be subject to federal ‘coordination’ to assure ‘the people's interests would be protected’. If the President was a really clever and media savvy type he could become another FDR which would greatly boost the prestige of the federal government in the eyes of a majority of the voters. Such a situation would create a great deal of economic turmoil globally but a clever president could turn foreign quarrels to his advantage by discovering some reason in them for intervention which would be described as ‘protecting democracy’ or some other attractive but meaningless phrase.

Definitely something to think about. History is filled with clever schemers who take advantage of a situation at an opportune time. They all seem to be repressive by nature.

I don't want to be a "global citizen"; I want to go back to our Constitutional Republic as it was meant to be. With the Bill of Rights intact, as the Founding Fathers knew that it was our insurance policy against the King George within.

I feel hopeful when I visit this site; it is reassuring that I am not the only person who feels this way.

[Jim Noble]

“US will default on its debt”

Duh.

[Retain Mike]

We already have emergency food, gold, silver, water filters, fuels, etc., but just realized one other option to consider. Historically one commodity that can be bartered in hard times is wine. I live in Oregon, which has a huge number of really great wineries. My wife and I are going to spend a couple to a few thousand dollars on cases for a wine cellar. This process will involve several overnight trips and wine tasting expeditions. Other options for use of our retirement time will just have to wait, but first things first.

I find it incredible that otherwise rational people are willing to trade things of substance for numbers that run through my credit card and onto a bank statement to be refreshed by other numbers electronically transferred to the other side of the statement.

[beebuster2000]

read about one other thing that is always tradeable and in short supply: pepper

cant remember where i read that, i think it was a sci fi novel recomended here on freeps

[blam]

"But what's with nickels ... does melt value exceed face? I don't think so, except for "war nickels" (WWII) that are 35% silver. "

Read This:

Why You Need to Own Nickels, Right Now

"There's right now 6.2 cents worth of metal in a nickel [Note the value is now up to 7.2 cents.-RW]."

[OB1kNOb]

Glad to help. It’s a very interesting read.

[Retain Mike]

Yep. My wife is on that one. My post could have sounded frivolous, but I was serious. Red wine can be stored almost indefinitely, provided you keep the temperature in the proper range.