Surviving the crash

[sobo]

YEP! If they cut off the supply completely? My ammo would soon be worth more than the silver I own.

My ammo is already worth double-digits times the silver I own. It's pretty much following the Au/Ag ratio.
Clearly, I've been focused too much on ammo for too many years. I need more silver...

 

[Alexx1401]

My ammo is already worth double-digits times the silver I own. Clearly, I've been focused too much on ammo for too many years. I need more silver...

Wife keeps giving me the "eye" every time more silver shows up at the office. I keep telling her I may well be wrong. May well lose a little money on this some day. I keep telling her the money I am turning into metal is already losing though and the metal will never be worth nothing. So if I take a little loss on it some day such is life. My well make a bunch off it too. Getting to the point I will have to "plant some" here this spring. Tell one of the kids if we up and die make sure you dig up this bush or this tree after we are gone.

 

[sobo]

Wife keeps giving me the "eye" every time more silver shows up at the office. I keep telling her I may well be wrong. May well lose a little money on this some day. I keep telling her the money I am turning into metal is already losing though and the metal will never be worth nothing. So if I take a little loss on it some day such is life. My well make a bunch off it too. Getting to the point I will have to "plant some" here this spring. Tell one of the kids if we up and die make sure you dig up this bush or this tree after we are gone.

Kinda like the biblical story of the old man, the vineyard, and his sons?
Although in your case, the payoff for your kids would be more immediate...

 

[Longwalkhome]

Inflation is government taxation of your wealth. What currency you have is losing value as we speak to about 10% a year. The commodities you have are gaining in value when inflation is turned loose on us.

Tyrants want to control our wealth because money is power, commodities hinder the Tyrants so they tax and control them.

As the crash plays out its going to help a lot to have a lot of commodities to barter with but keep in mind as the stores close the criminals will be looking for commodities.

 

[sikhed]

Wonder what that might do to their tax revenue streams in a very short while?

Debtor's prison. With the intent of scaring the rest into compliance and submission.

 

[gmerkt]

By protecting uninsured depositors, the Government has taken on a huge liability, and we will see how that turns out. By doing this, the Government now has a tremendous incentive to keep this contagion under control.

This is the latest step in the "too big to fail" backstopping that the gov't and the Fed have been undertaking since 2007-08. And why a hard reset never occurs because of artificial meddling in natural financial cycles.

 

[Jay Walk]

They were doing this sheet in the 80's
Savings and loan crisis... Anyone? Bueller?

 

[Mono1]

I am going to establish definitions of two types of participants in the banking crisis, just for clarity in the following comments:

Depositors are entities (people or businesses) that entrust money to a bank in exchange for a contract to return that money, with an agreed-upon rate of interest.

Investors are entities (people or businesses) that provide money for the bank to use to establish and run the bank, in exchange for a percentage of ownership of the bank itself.

The government doesn't want to sell Treasury Bills to individual investors. They prefer to sell blocks of these to "gateway" buyers who then resell them, or package them into investment instruments. Part of this is to steer the business through banks.

The result is that people ( and businesses) that need to store cash in these secure investments are forced to go through banks, which puts that cash on the bank's balance sheet. That asset is marked down when the current sales price of the Government Bonds backing the CD (or similar instruments) fall in value. This fall in value in this case is caused by Government and Federal Reserve actions to raise the interest rate on current bond sales.

Since the old bonds pay almost no interest (due to Government and Federal Reserve actions at the time of their original sale), and current bonds pay several percentage points more, the value of the newer bonds is greater, and the value of the old bonds falls, sometimes drastically. But the real payoff of the older bond is still the same, so if the customer (buyer of the bank's instruments) had been able to buy the bonds directly, there would be no crisis, because the asset would have been held directly.

On a strictly moral basis, the Government is properly protecting the depositors, because the fall in bond values is due to the actions of the Government. However, there is no moral reason to protect the investors.

This is different from investment in the bank itself, where investors put up money to establish and run the bank. If the bank itself (separate from deposits) declines, it is simply the risk taken in investment activity.

By protecting uninsured depositors, the Government has taken on a huge liability, and we will see how that turns out. By doing this, the Government now has a tremendous incentive to keep this contagion under control.

Excellent Post.

I find it interesting that the larger "Too Big To Fail" banks are allowed to value bonds as "Held to Maturity"
but the smaller banks are required to "Mark to Market"

 

[Nick Burkhardt]

Sheeez, my Dad still has a few dozen Late-1800's Morgan Silver Dollars that he bought in the 1980's.

 

[Provincial]

Excellent Post.

I find it interesting that the larger "Too Big To Fail" banks are allowed to value bonds as "Held to Maturity"
but the smaller banks are required to "Mark to Market"

The same MO that the Government used to eliminate most Savings & Loans.

 

[Burt Gummer]

My ammo is already worth double-digits times the silver I own. It's pretty much following the Au/Ag ratio.
Clearly, I've been focused too much on ammo for too many years. I need more silver...

Still Smart! and true (having both). I've told friends that want alternatives to buy ammo and have always seen it superior to G/S even though have both. When ammo was really dried up I was at Bi-Mart and saw INDIVIDUAL .22lr at .29 each. No quality CCI or other stuff either, just the most basic 22lr. Literally lined up with a price sticker on each. Ammo, especially the most common, 22lr, 9mm can't be beat as an 'anti-Fiat worthless at some further date alternative.'

 

[Alexx1401]

Still Smart! and true (having both). I've told friends that want alternatives to buy ammo and have always seen it superior to G/S even though have both. When ammo was really dried up I was at Bi-Mart and saw INDIVIDUAL .22lr at .29 each. No quality CCI or other stuff either, just the most basic 22lr. Literally lined up with a price sticker on each. Ammo, especially the most common, 22lr, 9mm can't be beat as an 'anti-Fiat worthless at some further date alternative.'

Never heard of a store going that far but do remember one panic, several panics back people doing that at gun shows. Heard some sellers had little plastic baggies of things like .380 in 10 round lots. People said it was funny to see but people were buying them. If they shut off the factories making this stuff. We will see some amazing prices on the stuff.

 

[Longwalkhome]

Looks like before this is over the small banks will be crushed and consolidated into the big banks. That has to happen in order to go full ESG and cashless.

I find it interesting that before the banks started failing the commodities were reduced a great deal. Money failing but they empty the store shelves just enough.

Just reading from JPM that $550 billion in deposits were drained in one week. Where do you think that money went?

 

[The Heretic]

And now some SVB employees are trying to blame remote work for its collapse - but not offering any real evidence that I can see.

SVB employees blame remote work for bank failure

What happened at Silicon Valley Bank will likely enter the broader return-to-office debate.

www.axios.com

 

[The Heretic]

Still Smart! and true (having both). I've told friends that want alternatives to buy ammo and have always seen it superior to G/S even though have both. When ammo was really dried up I was at Bi-Mart and saw INDIVIDUAL .22lr at .29 each. No quality CCI or other stuff either, just the most basic 22lr. Literally lined up with a price sticker on each. Ammo, especially the most common, 22lr, 9mm can't be beat as an 'anti-Fiat worthless at some further date alternative.'

The only PMs I have are lead, brass, aluminum and steel - all in the form of durable goods/tools and consumables that are useful by their form.

 

[Alexx1401]

Looks like before this is over the small banks will be crushed and consolidated into the big banks. That has to happen in order to go full ESG and cashless.

I find it interesting that before the banks started failing the commodities were reduced a great deal. Money failing but they empty the store shelves just enough.

Just reading from JPM that $550 billion in deposits were drained in one week. Where do you think that money went?

Since as far as I know all banking is under Fed control it would not matter how many of them there are if they pass a law making no more cash. ALL banking is connected on line, has been for a very long time. If the law makers push in a digital dollar and just do away with paper all banks would just be told this is the way it is take it or get out of banking. I have to say it would be fun to see the outcome. Billions of dollars in cash held by people doing stuff that is not legal? Would be fun to watch them trying to figure out what the hell to do with all those dollars they had to turn in.

 

[Longwalkhome]

Kevin O'Leary Discusses How Small and Regional Banks Will Disappear With New Biden/Yellen Policy... - The Last Refuge

Small to medium sized banks along with credit unions are the best vehicle for Main Street USA small businesses. Somehow in all the conversations about banking customers, this little factoid is seemingly, perhaps purposefully, overlooked. WATCH: Posted in Banking and Finance, Big Government...

theconservativetreehouse.com

 

[Alexx1401]

Kevin O'Leary Discusses How Small and Regional Banks Will Disappear With New Biden/Yellen Policy... - The Last Refuge

Small to medium sized banks along with credit unions are the best vehicle for Main Street USA small businesses. Somehow in all the conversations about banking customers, this little factoid is seemingly, perhaps purposefully, overlooked. WATCH: Posted in Banking and Finance, Big Government...

theconservativetreehouse.com

In the background this morning I heard some law maker grilling that woman who sounds like she never finished school about this. I guess there has been a run of sorts on many small banks people moving money to one of the "big boys" due to the Gov bailing out some banks. Janet sounded like she could not make a coherent sentence when grilled about this. Easy to see why she is in charge, she is an idiot. If people keep moving money out of the small places though a lot of them will have no choice but to sell to one of the "big boys". With so much online now I have long wondered how we still have as many banks as we do.

 

[VinnieBoomBah]

Billions of dollars in cash

Not sure how accurate this info is, but from what I could find "only" about $1.5 billion U.S currency is in the physical form we think of as "money"

 

[VinnieBoomBah]

In the background this morning I heard some law maker grilling that woman who sounds like she never finished school about this. I guess there has been a run of sorts on many small banks people moving money to one of the "big boys" due to the Gov bailing out some banks. Janet sounded like she could not make a coherent sentence when grilled about this. Easy to see why she is in charge, she is an idiot. If people keep moving money out of the small places though a lot of them will have no choice but to sell to one of the "big boys". With so much online now I have long wondered how we still have as many banks as we do.

Go back and listen to any Fed speech, they spend hours and thousands of words not saying anything