Some investment advice for a possible monetary collapse Oct 07, 2008 - 08:57 AM
Start rant. - Put part of your assets in precious metals, preferably gold and silver bullion that you can buy from your local coin shop. I like the pre-1965 half dollars since they have 90% silver content and could be used as an alternative currency if the dollar lost all value. It's hard to buy milk and bread with a a gold coin. I don't really view gold as an investment, but rather a hedge against the fall of the dollar.
- Have some cash on hand, like 2 months worth or at least $2,000 (per person), in case of a run on the bank, and/or you have to buy a ticket to escape the US.
- If you intend to stay in the country, learn to grow and preserve your own food.
- Have a skill, like carpentry or making beer, so you can barter.
- Consider installing solar panels for electricity for your entire house. You could use it to also heat your house through electric baseboard heating.
- Buy and learn to ride a motorcycle or scooter to conserve gas.
If you think I'm whacked out, let's look at a few examples of financial shenanigans around the world: Most of the financial crises I list happened within the past decade. "Helicopter Ben" Bernanke is not going to be able to save the financial markets. He's just creating hyperinflation, reducing your coveted dollar to nothing. As far as I'm concerned, this is the lull before the financial storm. I think the government should let the financial giants burn. We need things to collapse so that we can rebuild, have items like houses return to their true value, not the gambling items that they had become. Russian has rebuilt it's economy despite defaulting on its loans and the US can do the same. Look at the US debt that China owns. Can you imagine what would happen if the US defaults? Or if foreign buying of our treasuries dried up? The ideas on what to do come to mind when I think about certain situations like: - Trucks stop delivering produce and goods to grocery stores because the price of gas is prohibitive.
- A run on your bank occurs and it closes down. You are too late to withdraw cash, and your ATM card is turned off. Makes the FDIC insurance guarantee on your deposits of up to $100,000 sound ridiculous now, huh?
- Civil unrest and rampant gun ownership combined with desperation makes the US a dangerous place to live.
What will you do? Live off the grass like the North Koreans? Or take that $2,000 and your hoard of coins to some place like Thailand's beaches to sip pina coladas and wait it out? Anyway, I don't mean to cause unrest, but the writing is on the wall. I can draw you a freakin' chart of where this is all headed. And if you think what I am saying is still unlikely, how unlikely did you think a WaMu would fail? Or an AIG? These are huge firms, and in the case of AIG, global in size. What the hell are you going to do when gas costs $10 dollars a gallon? I see it going that way because of hyperinflation. With a fiat currency we will never have a depression, we can only have inflation. The Fed clearly sees it as the lesser of two evils. As I see it, if the worst doesn't happen then fine, accuse me of crying wolf, I'm okay with that. But if worst comes to worst then having these things in place will help you survive and thrive. Okay, end rant.
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