Posted on 10/05/2008 6:52:37 PM PDT by Lazamataz
I do. I am expecting a Mad Max world, the stuff I've been reading!
It is possible that the effects of the problem are being exaggerated by those who seek to profit from it. I think there is a fair amount of that in the bailout bill debate.
But, yeah...a lot of (illusory) wealth disappeared very rapidly, and the echoes are causing all sorts of chaos. IMHO.
I don't have a ton, but do you suggest I turn my savings into greenbacks?
I do understand that deflation kills. When there isn't a small amount of inflation, lending is impossible.
Bob Brinker said tonight there was no possibility of inflation.
I’m putting mine into tulip futures.
Brinker is incredible. Does Brinker -- a levelheaded fellow -- postulate complete meltdown and worldwide poverty / food riots / etcetera?
China is not immune. Their whole economic system is built on selling the goods they manufacture to others, mainly the U.S. If that goes, so does the whole Chinese economic pyramid.
So what you are saying is we are completely screwed.
Laz,
You know the difference between ethical and legal. Lots of things legal are not ethical. Quite a few people don’t give a rat’s patootie for the difference. They are hedge fund managers and pornography producers. For them to operate on wall street, it is a zero sum game; they win, you lose.
Now we’re in a bind; looking for a legal way to curb their interesting interpretation of ethical conduct. If their trades cause them to have all the money and stock, in their point of view, that’s good. If we’ve been enabling that for the past ten years, that’s very good; in their point of view.
Now they have so much clout, the pond isn’t big enough for all the heavyweight crocs waiting for innocents to come and drink. Will the whole world wide system crumble? As far as the crocs are concerned, yes. The day after we try to feed them $700,000,000,000 the very next word is ‘that isn’t enough’!
AIG is almost through all the bridge money the fed gave them to liquidate bad assets and they haven’t even started to do that. These crocs want someone to guarantee their transactions and their cash flow, and it isn’t going to happen. We’re just feeding their maw by opening floodgates of cash.
I could go on with this rant but you get the idea-—someone peed in the pot with our supper.
http://www.nakedcapitalism.com/2008/10/hypo-bank-gets-68-billion-rescue.html
Hypo Real Estate just got a $68billion bailout without the German taxpayer being burdoned as reported in the above link.
Aw, dang. And here I set myself up to profit from inflation.
Banks aren’t liquid - none of them are. Most of the money they process doesn’t even exist.
That’s why we have issues.
Theoretically your savings in a bank are 'guaranteed' up to $100,000.00 per Federally chartered bank. Now whether or not, in actual practice, you'll be able to withdraw that is an open question. For the last several years we've been buying 10 to 15 ounces of silver a month. We've got a tidy little pile set back. When they were available, we would toss some 1/10th ounce gold coins in there.
At my most recent visit to my dealer, he informed me that there are no gold or silver rounds available, period. He had about 20 1 ounce silver bars left, which I purchased, but that's the end of his inventory.
Now you tell me what's going on.
To answer your question I don't think it's ever a bad idea to have a small pile of cash on hand. We keep some locked in our safe for a rainy day and have for years.
Would I recommend you draw it all out? No. Would I recommend you have a few hundred bucks around? Yep.
What I would recommend is that you have a nice pile of other metals available to hand....brass, copper, and lead spring to mind.
L
Nobody will be spared, unless they own gold bars.
Gold bars taste horrible.
Don’t forget to buy a high quality water filter,one of the ones with a ceramic filter.Everybody talks about ammo and food,lack of safe water will do you in pretty quick.
The writer is a liberal doomsayer.
His Chicken Little Syndrome shows he needs some medications.
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