Economics question Yeah I know on Gun Broker
I was thinking that eventually someday maybe perhaps interest rates may rise, but I guess as long as countries are printing money no real point in rates rising because its worthless money anyway backed only by the "full faith and credit" of the government issuing it. And the Governments issuing it don't want to have to pay higher rates to prop up their currencies.
That said in a market melt down where dollars or Yuan are worthless or near so, would Gold be a natural safe place?
Something is going to give maybe not even in my lifetime but the world is gorging on debt I don't see any good way out, no Government is going to raise taxes enough to fix it or stop/reduce spending to sustainable levels.
Greece if I'm not mistaken tried giving investors a haircut but were only able to cut so far without a full on revolt. Same would go for just about anywhere I imagine.
That said in a market melt down where dollars or Yuan are worthless or near so, would Gold be a natural safe place?
Something is going to give maybe not even in my lifetime but the world is gorging on debt I don't see any good way out, no Government is going to raise taxes enough to fix it or stop/reduce spending to sustainable levels.
Greece if I'm not mistaken tried giving investors a haircut but were only able to cut so far without a full on revolt. Same would go for just about anywhere I imagine.
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My thoughts Don't owe any one for any thing, or owe all you can owe and maintain.
Materials such as gold or diamonds have historically had worth. I like silver, its an excellent germ fighter and with proper flux a wonderful solder. Platinum is useful catalyst. I favor organized steel such a firearms, grain grinders, tools, mt. bike and other stuff like tarps, coats, socks, boots and gloves.
Make sure your teeth and eyes are in top shape. That is a good investment IMHO.
Get in shape, if you have to fend for yourself, flee, or fight; its a lot easier to do if you are good physical condition.
Training can be a great investment. The lightest things to carry on your back are skills and knowledge.
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Classic! 0 -
Gold and Silver will always have some value.
Depending upon the depths of the melt-down, however, you may not be able to trade gold or silver for what you need.
The chances of such a complete destruction of our economy are remote.
IMO, the best bet is to diversify assets such that you have a balance of stock funds, bond funds, cash, and yes, some precious metals.
The value of each will fluctuate with respect to the others over time, and as you need to draw out money, you can pick from the asset that has given you the greatest return at the moment.0 -
That is probably what they thought in 1929 tooDon McManus wrote:The chances of such a complete destruction of our economy are remote.0 -
mogley98 wrote:
That is probably what they thought in 1929 tooDon McManus wrote:The chances of such a complete destruction of our economy are remote.
The Great Depression was not even close to the complete destruction of our economy.
A major hiccup that market forces would probably have corrected much quicker than did the meddling of Mr. Roosevelt.0 -
No government with a huge amount of debt, like the USA, is even slightly interested in increasing interest rates. Think your mortgage payment is high? What do you suppose the annual interest is on the 20+trilllion US debt? A tiny increase in interest rate inceases it by billions, billions they don't have. 0 -
All i know is you could never run your own finances the way the USG runs and you could never run a business this way either.
When the only ?goal? is to give away free stuff eventually someone will lose the shell game.
Lead will be more versatile than gold at some point.0 -
Gold and silver will never go to zero in value- but may have limited usefulness. IF the US dollar collapses, and we are at the bartering level, it is pretty hard to buy a couple of pounds of sausage with a 1 ounce gold coin.
But I will admit to having a small stash of Ben Franklin halves and Liberty dollars in the back of the safe. They are not gonna rust, I don't have to feed them. With any luck, one day the grandkids will inherit some interesting things.
Our economy has never been the nightmare of Greece or Venezuela. I have watched Brazil go thru inflation that would eat 10% of your paycheck every day you did not spend it. THAT is some scary crap.0 -
Methinks that the world economy has become so interconnected that no one fully understands it. Most economic forecasts are about as accurate as your local weatherman. Yes the country is 20+ trillion in debt, but other than low interest rates how does that affect you? As I said in another post, in the early 80's I could get 4% interest on savings but mortgages were at 16%. A big percentage of the population has more tied up in their house than in savings and if you ask them if they prefer todays rates over the 80's rates they would overwhelmingly say todays.
I doubt if any country or institution will call in our countries debt. We couldn't pay and would default. That would crash the worlds economy for the foreseeable future.
As far as our money being worthless don't tell the grocery store that as I left a bunch of it there today. The U.S. and most world currencies are just a way of keeping score. I worked my whole life and saved for retirement. Those that don't/didn't, come in second place in the scoring system. Sadly there are those that say I should support those that made the stupid choices and had fun with their money and blew it all. It's my turn to have fun and the heck with the irresponsible idiots. I'll stick with dollars - if they ever do become worthless I'll have paper to wipe my butt. Bob0 -
It would be interesting to see a balance sheet on Earths countries as a whole.
The US was however trillion in "debt" whatever that even means. How about all the countries in Africa, Germany, India, Chile, Honduras, etc. I would bet it isn't within 30 trillion of being balanced out at $0. Some People seem to predict it is going to come "crashing down" at any moment but I don't see it ever actually happening. it just seems to keep chugging along, maybe an occasional correction will happen but with the stock market at an all time high it might be prudent for those of you heavily invested in it and upwards in age to move to safer holdings. I have been adding a SFH rental to my portfolio at a rate of about 1 a year for the last 7-8 years along with my business interests. I take a much more aggressive approach with my money than the stock market by starting and expanding different businesses. I am 39 years old, I plan on building a forever home in the next year or two and retiring in my mid 50's hopefully. I suggest everyone under the age of 50 attempt to take my approach rather than the usual W2 income their whole life and invest in a Roth IRA or 401K for retirement.0 -
Actually the money is far, far from worthless. While we are thankfully no longer on the 'gold standard' the money is backed by the full value of the resources of the US, which is worth vastly more than the money in circulation.
Gold can be one good segment of an investment strategy if you are really worried about a market collapse but it will then be useful only in a barter economy. Stocks have been the best paying investment over time. You have to remember that stock investments are long term strategies, not short term (Most of the 'day traders' are now doing other things). Still having your eggs in several baskets, all of which you watch closely, is the best long term strategy. Stocks, bonds, munis, etc. Money markets funds are not bad just now. Bank savings and CDs not so much.0 -
Gold and silver and other things we call "precious" will have value when you are trading with someone so far away that they need the portability or lack-of-spoilage that metals/gemstones/etc have.
But you can't eat it, you can't farm with it, you can't "have relations" with it, it won't keep you warm at night, you can't defend yourself with it, etc. I'd have some but not a lot, and would rather put more money into food reserves, tool reserves, ammo, etc.0
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