Financial topics

Investments, gold, currencies, surviving after a financial meltdown
Higgenbotham
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Re: Financial topics

Post by Higgenbotham »

Trevor wrote:
First, get ready for a post-collapse world.
Would you have any advice for a 23-year-old man who's just trying to find a way to survive the coming economic collapse?
If you're 23, then your options are somewhat limited but also straighforward, though not easy.

Find a job that is fairly collapse proof. Work as hard at it as you can. Always work any overtime you can get.

Be frugal. Spend your spare time doing things that increase self sufficiency and cut costs in the areas of housing, transportation, and food.

Work with people your own age who have a similar mindset. To find people like that, get involved with community gardens, food coops, etc.

You can also learn a skill that people will need in a downturn that they will no longer be able to afford to pay full price for. Something along the lines of auto repair or plumbing. It could be something very simple. Get to be known as the hard working kid who can be called to change out a pair of brake pads for $40 cash, or a water heater for $40 cash.
While the periphery breaks down rather slowly at first, the capital cities of the hegemon should collapse suddenly and violently.

Higgenbotham
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Re: Financial topics

Post by Higgenbotham »

OLD1953 wrote:Higgs, if I was going to go that route, I think I'd do direct home sales and deliveries. That way your percentage of the market is totally under the large company radar and they can't keep accurate numbers on you. They get excited about store shelf space when killing competitors, direct sales not so much.
I'd agree with that, at least under the scenario I laid out. Under that scenario, I'd also want to keep it out of standard distribution channels to get costs down. Eventually, it would make sense to concentrate just on manufacturing and selling to others who will distribute. But before that's possible, it would be good to have a keen sense of how to best distribute products in a high unemployment, low income environment.
While the periphery breaks down rather slowly at first, the capital cities of the hegemon should collapse suddenly and violently.

jcsok
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Joined: Sat Nov 08, 2008 6:51 am

Re: Financial topics

Post by jcsok »

Surely everyone has heard the big news (buy the rumor, sell the fact) that the German high court ruled "that the Eurozone’s permanent bailout fund, the ESM, and its ‘fiscal treaty’ on budget discipline do not violate the country’s ‘basic law’ and do not undermine Bundestag sovereignty over budget issues," according to Zerohedge. Further, on Zerohedge, a great video clip of Nigel Farage (who is always worth listening to for his poignant, insightful reaming of all of the actions and actors of the Eurozone. http://www.zerohedge.com/news/farages-b ... banalities

If you missed the clip of Rick Santelli of CNBS having a discussion with Farrage earlier this summer, there is a link you can follow when you pull up the current Farrage message. Farrage succinctly explains that the ECB's "medicine is killing the patient" by the ponzi scheme of all the member states participating in loans to the other member states, who have already been bailed out, and having to borrow money at 7% to reloan at 3% to others, who have had to borrow at 7% to reloan at 3%......

Europe is broke. The US is broke. If the European dominoes fall first, which I believe is highly likely, there is no way to prevent a massive generational crisis of deflation because money cannot flow fast enought to cover debt that is called. On the other hand, If the US continues to print $$$, which it will, we export inflation to other countries. They will stop buying bonds. The US does not have personal savings to tap at Japan has (or had), therefore only the Fed can be the buyer for the US bonds. Fiat money goes into the stock market; stocks via HFT go through the roof, only to have a meltdown later that makes the Flashcrash a sunny day in comparison. That which cannot go on forever, will not. Massive deflation follows.

This world is solely a giant Ponzi scheme, from which only a few will survive.

OLD1953
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Re: Financial topics

Post by OLD1953 »

I was keeping an eye open for an article related to the economy of California and the income drop there. The US economy naturally breaks up into several regions, and the coasts haven't really had a nasty recession for a very extended period, they didn't have the full impact of any recession from the late 60's until the financial collapse began in 2006. They've no experience with this and no idea of how to manage themselves, and they are lost, as that series of articles about "collapse of the dollar" showed.

http://www.latimes.com/business/la-fi-c ... 8274.story

In the central US, from the 70's through the mid 80's or early 90's, many areas never had any decent growth. This leads to some very angry people and a lot of drugs and crime. And it leads to a lot of people who simply hate the coasts, because they aren't suffering. A fair piece of the red/blue divide is simply from anger over the coasts being so much better off than the people in the fly over states. People vote because they think the coasts get all the attention from the government, and they'd rather have the suffering everywhere than just pay their taxes and feel like they go to relieve someone else's pain. When the pain is acknowledged as a shared experience, then we can see the next Turning begin, but I don't think it can happen before then, unless its forced because of outside attack.

aedens
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Re: Financial topics

Post by aedens »

July 7th: Fed’s Five Year Forward Break-even inflation rate is around 2.48%.
Last edited by aedens on Fri Sep 14, 2012 2:40 am, edited 3 times in total.

Reality Check
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Re: Financial topics

Post by Reality Check »

Huge financial news in the past few days.

ECB continues to promise unlimited printing of Euros and purchases of Spanish and Italian government bonds.
What ever it takes to keep Italian and Spanish Interest rates on government debt low.

German high court OKs German parliament using German taxpayer money to bailout other European countries.

U.S. FED just announced wide ranging, across the board, stimulus programs even bigger than expected QE3.
What ever it takes to reverse U.S. Employment outlook.

Interest rates on Italian and Spanish debt falling.

Stock Markets in U.S. and Europe surging.

All quiet on this forum.

vincecate
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Re: Financial topics

Post by vincecate »

Reality Check wrote: ECB continues to promise unlimited printing of Euros and purchases of Spanish and Italian government bonds.
[...]

U.S. FED just announced wide ranging, across the board, stimulus programs even bigger than expected QE3.
QE to infinity, and beyond! Just what the hyperinflation guys have been saying all along.

Reality Check
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Joined: Mon Oct 10, 2011 6:07 pm

Re: Financial topics

Post by Reality Check »

vincecate wrote:to infinity, and beyond!
I believe you nailed it. It is a motivational thing to get everyone spending again.

No more of that saving or paying off debt.

Need to get everyone excited and spending to create those jobs.

Might just work, if they print enough so people think it will be worth substantially less tomorrow, than today.

vincecate
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Re: Financial topics

Post by vincecate »

Reality Check wrote:
vincecate wrote:QE to infinity, and beyond!
I believe you nailed it. It is a motivational thing to get everyone spending again.
They will all start spending again. That much is correct. When a can on tuna is going up 5% per month and interest you get on your savings is 1% per year, you are much better off spending now than later. This will be what Mises called a "crack up boom". Lots of buying stuff as things fall apart.

vincecate
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Re: Financial topics

Post by vincecate »

vincecate wrote:I predict QE3 will be announced before the end of this year and be over $800 billion or with no fixed limit.
With the announcement QE3 of "$85 billion each month through the end of the year" and no fixed limit, I claim a win. :-)

I also predict that after the end of the year they will buy at a rate over $85 billion per month. There will be fewer and fewer fools leaving their money in bonds paying less than the inflation rate, so the Fed will have to buy an even larger fraction of the market.

-- Vince

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