GET RID OF YOUR CASH!!!!

[Chefcook]

YouTube - How Much is 1 TRILLION Dollars? - Glenn Beck - 3.19.2009

GET OUT OF CASH!!!! You have 2 choices spend your cash now while it still has value by buying food and goods you need to survive. Or invest in gold and silver. Your dollars will be worthless in a matter of months....

 

[CarmelHP]

Send me your cash and I'll dispose of it properly.

 

[acidbath]

Beck is right about the significance of what the Fed announced. But he is not an economist. For better understanding of what's going on, I recommend Mish. We are currently seeing inflation in a few items (food, guns, ammo) but we are mostly seeing deflation (housing, wages, non-essential consumer goods). Deflation is what the Fed is trying to prevent. My point is that getting completely out of cash is probably not wise at this point in time. My $.02.

 

[IUGradStudent]

Remember that the contraction of credit basically = destroying money. So, we won't have insane inflation unless the credit markets ramp up again. If we get lots of lending again, the Fed will have to cut down the money supply or we'll get inflation. When the economy recovers and starts growing again, that's when the inflation will hit. It wont be catastrophic, but it'll probably be significant.

That's my

 

[Agent 007]

Remember that the contraction of credit basically = destroying money. So, we won't have insane inflation unless the credit markets ramp up again. If we get lots of lending again, the Fed will have to cut down the money supply or we'll get inflation. When the economy recovers and starts growing again, that's when the inflation will hit. It wont be catastrophic, but it'll probably be significant.

That's my

No no no! Stop it, with your common sense! We're all gonna die!

 

[nobletucky]

So when do we start a new thread on gardening/ farming and preparing raw meats?
I believe Glenn hit the nail on the head, and explained it well enough for all to understand. I can't see how he is able to do what he does week after week, but he does a fine job. Thanks for the video post chefcook, the youtube link will be passed around to my friends and family.

 

[Liberty's Teeth]

Well, if guns, ammo, and food are on the way up, what should we do? Let's think outside of the box people. Where are you going to preserve the value of your dollar best at this moment? We could invest that cash in the stock market...no. We could buy a house...no. Hmmmm...would purchasing a few guns, some ammo and some food function as a store of value? I don't know about you, but the value of my guns and ammo has skyrocketed and continues on its upward trend. The chicken breast I bought at .99 cents a pound a few months back is still feeding my family..at .99 cents a pound. Why if I had to go to the store to buy that same chicken breast today i would have to pay almost 60 percent more. 60 percent!

Maybe we should get rid of some of our cash.

 

[HandK]

One Billion seconds ago it was 1958, and our gov spends a billion like there is no tomorrow, if they keep on the same path there will be no tomorrow for our kids, we can not spend our way to prosperity. Thanks for the link

 

[ihateiraq]

i sit in my room and play "its the end of the world as we know it" by rem on an endless loop. thats how i cope.

 

[Flintlock]

Actually, buying houses is a fantastic idea right now, if you have the cash. Go to a Sheriff's Sale and buy forclosures. Just keep your eyes open. In my town there are all sorts of houses that sell for $15,000 at Sheriff's Sale which will be worth $35,000+ after all this economic crap is over. My dad has been buying them left and right. Repair them yourself, rent them out and you can make up your money in a few years. And you will always own property. It's not some worthless piece of paper.

 

[HICKMAN]

Get rid of cash? No thanks... I don't know any stores that take gold.

What I won't do anymore is leave my cash in the bank, because you don't know which ones the Fed will move on next. Saw two credit unions were taken over by the Fed on Drudge.

 

[Liberty's Teeth]

I agree that buying forclosed houses is a wise choice right now. I just bought one. I am just trying to make a point.

 

[hornadylnl]

Actually, buying houses is a fantastic idea right now, if you have the cash. Go to a Sheriff's Sale and buy forclosures. Just keep your eyes open. In my town there are all sorts of houses that sell for $15,000 at Sheriff's Sale which will be worth $35,000+ after all this economic crap is over. My dad has been buying them left and right. Repair them yourself, rent them out and you can make up your money in a few years. And you will always own property. It's not some worthless piece of paper.

I practically gave my parents house (I would have gave it away for free but my brother wouldn't) because the house was worthless. No way in hell am I ever dealing with renters. Good luck getting them to pay rent, good luck getting them out when they don't and sure as hell hope they don't trash the place while they're there.

If it gets bad enough, I look for Light Bringer to confiscate all property for "the public good". That dumbass that took Blago's place is saying his new tax increase is for "the public good". These people aren't afraid to show their socialist roots.

Truthfully, I don't think any investment is safe right now. Stores don't take gold or silver and you can't eat it. Buy enough food and supplies that you can live on. Guns and ammo are a good investment as long as they never drop in price. I don't forsee it but you never know. Property will always have property taxes so if you buy it, you better have enough to cover that. Honestly, I don't know what to do.

 

[Flintlock]

It is hard to deal with renters, and yes sometimes the houses are trashed, but that's why you don't do extensive, expensive work on them in the first place. Sometimes you just have to strong arm them into paying and other times you have to take them to court to evict them, but overall rentals make for VERY good income, IMHO.

I could tell you horror stories about people who have rented from us in the past though. I will NEVER again eat ANYTHING from the Madison Taco Bell after one of their employees moved out of one of our rentals and I had to help clean the place. I don't know how ANYONE could live in a place like that.

But the fact of the matter is, people will always need a place to live and there will always be people who cannot afford their own houses. Now is a golden time in the real estate market, if you have the money and can get the credit.

My ideal investments right now though are in land, guns, and ammo. Give me those three and I can live independently without any dependence on society.

 

[Flintlock]

And as for the property taxes, yes they are a pain, but as long as you keep a tenant in the house, you can keep that covered, anything else covered, and still make some nice cash for yourself. In a few years your initial investment is covered and you still are making money from the house.

 

[turnandshoot4]

I agree that buying forclosed houses is a wise choice right now. I just bought one. I am just trying to make a point.

My fiance and I are closing a house that sold for $190,000 a year ago for $130,000. It was forclosed, we don't mind putting $5,000 of work into it.

 

[CarmelHP]

Beck is right about the significance of what the Fed announced. But he is not an economist. For better understanding of what's going on, I recommend Mish. We are currently seeing inflation in a few items (food, guns, ammo) but we are mostly seeing deflation (housing, wages, non-essential consumer goods). Deflation is what the Fed is trying to prevent. My point is that getting completely out of cash is probably not wise at this point in time. My $.02.

Wrong. We are not seeing deflation. We are hearing a lot of talk about deflation but are not seeing it. Prices are not decreasing. Housing is at what it should have been at if the wild run-up had not taken place. Gasoline is at 2004-5 prices. Natural gas and electricity are high. Food has hardly fallen any from it's run-up in price caused by the oil and biofuel bubbles. CPI flattened in October but that was the only month, where is this deflation?

 

[Panama]

YouTube - How Much is 1 TRILLION Dollars? - Glenn Beck - 3.19.2009

GET OUT OF CASH!!!! You have 2 choices spend your cash now while it still has value by buying food and goods you need to survive. Or invest in gold and silver. Your dollars will be worthless in a matter of months....

Thanks for the post for those who didn't get to see it the other evening.
Sadly it could very easily happen!

Wrong. We are not seeing deflation. We are hearing a lot of talk about deflation but are not seeing it. Prices are not decreasing. Housing is at what it should have been at if the wild run-up had not taken place. Gasoline is at 2004-5 prices. Natural gas and electricity are high. Food has hardly fallen any from it's run-up in price caused by the oil and biofuel bubbles. CPI flattened in October but that was the only month, where is this deflation?

This is an absolute fact!
The trouble is, the idiots in charge are trying to cause a "small" amount of inflation in the housing market.
But what I see as a very high likelihood is, once they get inflation started, it will be like a GIANT snowball rolling downhill.
The only way to stop it is with higher prices, interest rates and tightened money supply.
Meanwhile this MULTI-TRILLION dollar deficit, just keeps getting bigger.

I hope we are all wrong but I think we are screwed!

 

[jedi]

Thanks for the video ChefCook.
Now here is the question that I have been pondering on since yesterday and do not have a good answer and in reading about inflation I'm still at a loss.

So what happens when the dollar finally fails? What I mean by this is that the world no wants to honor it since the US is so in debt? Case in point the United Nations has reports that next week (18 Mar 09) it will recommend that the world ditch the dollar as its reserve currency in favor of a shared basket of currencies.

SOURCE: U.N. panel says world should ditch dollar | U.S. | Reuters

So basically the world (via the UN) will vote to get rid of the dollar as the baseline for all other currencies. Will it happen? Maybe/Maybe Note I dont know all he politics at the UN but lets say it does. What actually happens?

I still have to wake up say Monday, 30 Mar 09 and drive to the train station, get on the train (using my monthly pass) and go to work. At the end of 2 weeks I'm still going to get a paycheck direct deposit into my bank for $xyz dollars. So what changes?

Is the food store going to charge me $100 for a gallon of milk. If so why?
Just becuase their are now 1 trillion extra dollars in the market?
Just becuase we are no longer the world "std"?

What about my car loan due at the middle of each month for "abc" amount. I am still going to have to pay that amount right?
Same for my mortage, kids monthly tutition at school, credit card bill, etc.

The lights/heat are not going to get cut off? Will I still be able to buy a hapy meal at Wendy's? What about a new XDm? Or a box of pencils for my kid for school?

I understand that buying gold is basically for WEALTH preservation. Basically if I have $10,000 in the bank I should convert this to gold (10 troy oz; 1 troy oz = $1,000 right now) to ensure that my WEALTH does not drop in value. How/Why? Well from what I read if the dollar drops and prices go up like crazy (not sure why this really occurs) then my $10,000 which would at one time buy 10,000 loafs of bread ($1 per loaf) now can only buy 1,000 ($100 per loaf). So my WELATH is lower if I had the dollar but if I have the gold I can exchange it for dollars (get more dollars) and buy the same amount of bread (10,000) as before. The logic being that if I change my gold back to dollars the asking price for gold is now higher so I get more dollars then what I paid for the gold.

Off course you won't be trading in gold for dollars to buy food/basic goods. You would be using gold for higher price things. And thus you need silver for the smaller stuff. Using the same concept as gold but with silver.

So those of you that sya you can't eat gold/silver. True but if you have it you then have a method to buy things you may need. If the dollar fails who will take it? Wal-Mart? The local farmer when I can get tomatoes from? I know that while commerical stores (Wal-Mart, K-Mart) have no way of taking gold they also will have nothing on their shelfs since they are linking to the economey and the dollar and if they do have milk it might be at $100 per gallon so it would make more since to buy from a local person who actually DOES create the item (food) and s/he most likely will not want a dollar but someting else in return. Since GOLD/SILVER never lose their value (since the world for centuries has made that decision) then hey are good to have on hand.

However this does not give me a warm and fuzzy feeling inside. Not sure I fully understand like the answer. In addition some of you say to stock up on food (I have) but that route is also not fully possible. We can't stock food for life or 5 years? While some can grow some type of food (tomatoes and peppers for me) we can't grown everything that we are use to eating. Plus meat (pigs, cows, chickens) are out of the question here. So hoarding food to no end if not realistic.

I guess what I am trying to get at and what I have not found an answer is just what happens when the dollar fails? USSR failed and their money went bye-bye yet now we have RUSSIA with a new currency but the people are still there. Nazi Germany fails (governmet and currency) but a new government was put in place and new currency yet the people still remained. So in the end the dollar will fail and perhaps our government but a new one will rise so what occurs during the "middle"?

Riots since their is no food? Why is their no food? Are the farmers not working? Did the slater house not get new cows to kill?

People just not going to go to work? All the companies can not just close down? We still need the basics. Okay I can see rolex (high end luxury item) go out of biz since nobody really needs a rolex when you can use a cheap $10 watch.

SO what turly occurs? Spinning our wheels, hording food/ammo, and worring to no end is bad for our health.

 

[Mikeh82]

I think I will hold on to my cash and see what happens.