survival question

[Just Jim]

The government decides to take three zeros off our money due to inflation, can your finances stand this?

$100 = $1
$10 = 10 cents

Think this won't happen? Has it happened before?

Iran plans to take three zeros off currency

Read More

 

[baada]

Also: National Inflation Association

 

[nubus]

The government decides to take three zeros off our money due to inflation, can your finances stand this?

$100 = $1
$10 = 10 cents

Think this won't happen? Has it happened before?

Iran plans to take three zeros off currency

Merely because I'm a smarta$$...

Three zeros would be;

$100 = 10 cents
$10 = 1 penny

My advice... buy more silver.

 

[JedB]

It's also happened in Argentina, Brazil and some other countries where hyper-inflation was the key driver to it.
Look at our historical rates of inflation, and even if you are looking for some scary numbers like the mid 70s (double digit) that's very mild.

1) You can see it happening ahead of time, it's not an overnight thing.
2) You can hedge with a variety of financial instruments (convert to a stable monetary standard, buy/hold precious metals, international investments/accounts)

When i was in Argentina (1986, 1988, 1993) the people there converted their currency to dollars 5 times a day to mitigate the damage.

Maybe i'm an optimist, but i don't see that level of inflation here in the next 5 years.

And yes, Nubus, you are a smart ***

 

[Just Jim]

Merely because I'm a smarta$$...

Three zeros would be;

$100 = 10 cents
$10 = 1 penny

My advice... buy more silver.

$100.00 = $10.00

$10.00 = $1.00

Geez

jj

 

[Blitzkrieg]

Watch this, long but revealing

YouTube - Lindsey Williams - Middle East Crisis 3 DVD Set - March 2011 - The Middle East The Rest of The Story

 

[moose]

Its a matter of what you do with your money. Inflation generally means your money is losing value against the value of other things (or currencies). The clue here is investing in those other things during inflationary times, rather than hanging on to your cash and watching it evaporate. Buy something now and sell it later for the inflated price (be it gold, silver, real estate, toilet paper or whatever).

 

[packman]

i don't have enough disposable cash to buy much gold or silver
but i am investing in salt,sugar and ammo

 

[Just Jim]

Glad everyone post the article links above I had not seen those articles,

Here are some of my observations on the devaluation of our currency.

Well even thought They have NOT done it that way, with the government driving our economy into the ground and putting us into bankrupty, in a since they have already partially done it, by no means by what has been mentioned above but the same it just everyone has their blinders on and cannot see the forest becasue of tree's. Fuel costs alone have risen 3 times what it cost 8 years ago.

$1.25 x 3 = $3.75 or $3.75 / 3 = $1.25

I have seen banan's rise from $.38 a lb to $.52 a lb in just a 1.5 years that is 36% increase and my wages have not increased

Just remember of the value of the currency goes down tht does mean the price of the goods will, but i wander will debt decrease by threee 0's, I think not so that means America would become a third worl country overnight and Big "O" would get his chaos he wants and it would be right for the picking of the muslin brotherhood and the chinese.

Until Bernanke Is Brought To Heel in [Market-Ticker]

A little info

jj

 

[jer fly]

watch <broken link removed> very real chance of this happening soon...

 

[Whitelightning1776]

If you don't have any assets, don't bother with gold and silver. Your top priority is water and food. Then of course a good stock of ammo is good to have for protection and securing game. Gold and silver are definitely the way to go if you have money, but you can't eat em.

 

[jer fly]

I agree with white lightning. Food water and ammo should be at the top of your list. Probably not a lot of commerce during TEOTWAWKI scenario. Good idea to plan on being self sufficient for awhile. On the other hand if you are financially secure and already have a investment portfolio, best to get out of anything related to the dollar and put what you have in something safer. This is only if you think life as we know it will resume at some later date....

 

[MA Duce]

I agree with white lightning. Food water and ammo should be at the top of your list. Probably not a lot of commerce during TEOTWAWKI scenario. Good idea to plan on being self sufficient for awhile. On the other hand if you are financially secure and already have a investment portfolio, best to get out of anything related to the dollar and put what you have in something safer. This is only if you think life as we know it will resume at some later date....

Nothing wrong with being in financial instruments linked to the dollar.....if the monetary basis is sound, and a devaluation seems likely the issuers will most likely switch to the Euro or another currency. I fully expect oil to go away from the dollar in the near future....but if you have x dollar value in oil futures, and the monetary basis switches to the Euro, the oil will still be "worth" the same, because of market forces. The only real risk is a sudden devaluation and your entire holdings are in the currency market.

 

[Grunwald]

I would not bet on the Euro either. It is very likely that it will fail before the USD does.
So far we have seen Greece, Ireland and Portugal on world wide display, showing their financial problems. We also know that England is having issues. However everyone involved in finance expects Italy and Spain to surface soon enough. That will be bad, but there is another country that not many dare to mention. and they are going to have a debt meltdown as well. That country is France. All those decades of kicking back and enjoying the good life are about to end for the men in berets - their credit card has been maxed out.
I seriously doubt that Germany will be willing to bail everyone out. They might still feel guilty about WWII, but somehow I doubt that their guilt is that strong.

 

[crainer1207]

$100.00 = $10.00

$10.00 = $1.00

Geez

jj

you only removed 1 zero.......GEEZ

 

[Grunwald]

Mexico did this in 1993. They lopped of 3 zeros, for an exchange of 1,000 old pesos to 1 new one.
Poland did one ever better in 1994. They did an exchange of 10,000 to 1, chopping off 4 zeros.
Russian did their 3 zero chop in 1998

Of course Zimbabwe is by far the champion, but it would be silly to compare an under developed African $hit-hole like Zimbabwe to any country in the developed world. They did however take the machete to their currency 4 times, with the last one being 1,000,000,000,000 to 1 (or 10 raised to the power of 12).

 

[MA Duce]

I would not bet on the Euro either. It is very likely that it will fail before the USD does.
So far we have seen Greece, Ireland and Portugal on world wide display, showing their financial problems. We also know that England is having issues. However everyone involved in finance expects Italy and Spain to surface soon enough. That will be bad, but there is another country that not many dare to mention. and they are going to have a debt meltdown as well. That country is France. All those decades of kicking back and enjoying the good life are about to end for the men in berets - their credit card has been maxed out.
I seriously doubt that Germany will be willing to bail everyone out. They might still feel guilty about WWII, but somehow I doubt that their guilt is that strong.

My point was that any financial instrument based on a hard commodity, (oil, copper, zinc, etc.) will always have value.....the way it is counted and how that nominator is valued is meaningless. If you are locked into a futures contract for 10,000 bbls of oil it doesn't matter if you are paid in dollars, euros, or Saudi Riyals.

 

[Grunwald]

Here's a heart warming fact from that list. Argentina which blew up (financially speaking) just a couple of decades ago, is now in a lot less debt than the USA.
They are number 50 and USA is 36

Heck, according to that list Serbia, which had quite a few things leveled in the 1990s courtesy of Bill Clinton, is doing even better.

Even funnier, the country the is the very last one on that list is Libya, which is being bombed by France, England and the Noble Peace Prize winner.

 

[powersbj]

Yeah I know, i question the validity of data myself. I do not believe crap I read. But what is scary is if it is actually correct the way things are going the idiots in DC just may use this data as way to argue to take a few zero's off the value of dollar, but what I would like to know is if I owe $100,000.00 does that mean I now owe 100.00 or does the amount owed stay the same. Knowing the DC clowns the owed part would stay the same.

The revaluation of the debt to the new value of the dollar will remain in the raito as set by the old value. Unless the new value under values as compared to the new value or total assests, or re-revaluation as set by the commitie of the setting of value to the people....


Seriously though...
Historically there is a small window to pay off debt with the inflated currency before the revaluation, its the same window the .gov will use since it is pretty much why its is doing what it is doing.

 

[Grunwald]

The revaluation of the debt to the new value of the dollar will remain in the raito as set by the old value. Unless the new value under values as compared to the new value or total assests, or re-revaluation as set by the commitie of the setting of value to the people....


Seriously though...
Historically there is a small window to pay off debt with the inflated currency before the revaluation, its the same window the .gov will use since it is pretty much why its is doing what it is doing.

When currency get revalued you are given a fixed amount of time to take any money that you have to the bank and exchange it for the new currency.
The debts would also be adjusted accordingly.
However, by the time the government (or will it be the Federal Reserve??) decides to chop off zeros, inflation has already done a number on people's savings and debt. The government are always lagging behind on these sort of things, so you will likely see inflation of 1000% before the government takes any sort of an action.
You have to remember that hyperinflation also erases the debt that the federal government (as well as states) owes.
Your 100,000.00 debt would likely become so small thanks to inflation that you would be able to pay it off in a month.
Just make sure its a fixed rate loan.