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Old 11-10-2015, 03:34 AM
js js is offline
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Default Hyperinflation



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How do you plan to deal with it?

Lots of 'merican youtube preppers recommend gold and silver. Do you think this would work in SA?
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Old 11-10-2015, 06:03 AM
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How do you plan to deal with it?

Lots of 'merican youtube preppers recommend gold and silver. Do you think this would work in SA?
First, evaluate the logic behind your belief that hyperinflation is coming.
This analysis is very important because an investor's response to either hyperinflation or deflation are polar opposites. In short, to counter inflation, you buy hard assets…precious metals, land, stuff who's price will increase next week. To counter deflation, you sell hard assets and hoard cash (things will be cheaper next month).

I am in the deflation camp. I think America will mirror Japan. Aging population. Saving, instead of spending. Delayed families. Middle class shrinkage. No growth. No inflation despite massive printing of Yen/Dollar.

I do not have insight into your SA situation. But I believe in the USA, homes and gold will be available at lower prices in 5 and 10 years from now. The Fed will raise rates in December and growth will come to a screeching halt in 2016Q1.
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Old 11-10-2015, 08:12 AM
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The best way to deal with hyperinflation is to have no debt and as much stuff to make yourself independent as possible, including cash. Interestingly this happened in the 70's and my dad had a bit of money he inherited from his uncle. He was retired and was able to live off the interest with the money invested in Certificates of Deposit. This time around there is no one paying much interest to have money in the bank because the whole world is in debt. That means to me that we may be facing hyperinflation followed by another severe depression, though I am not a finance guru.
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Old 11-10-2015, 08:14 AM
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But that won't stop Zuma from buying a 4 billion rand jet.
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Old 11-10-2015, 08:40 AM
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Quote:
Originally Posted by js View Post
How do you plan to deal with it?

Lots of 'merican youtube preppers recommend gold and silver. Do you think this would work in SA?
PMs should be a small percentage of your plan, and only if you hold it in your hand paper assets don't count. PMs are better if your plan is to move around a lot, not so much if your setting up to bug in I feel money could be more efficiently spent on essentials, but do keep some for the unknowns and unplanned pitfalls, never all eggs in one basket type thing.

Purchase things now that you need or use:
-on a daily basis(a plus if it is something everyone else needs too),
-that will hold value (market dependent),
-and that will store long term (which do not need external resources to do like freezing).
This will limit future spending on those items where you are in competition with others to get the same items, this will allow extended spending in other areas with less competition giving you greater buying power.

Things I try to buy 10% extra when I shop and put away for rainy days LTS- The full range of toiletries and hygiene goods that don't have shelf lives. This area has been pretty flat for me cost averaging not noticed much change and even some deflation here, but I have also recently (couple of years) been stocking these items from a dollar store.

I also do FD foods, dehydrated/mylar bulks (self done), and canned; but here I probably only go through 10% (canned use is higher 75%?) and store the rest, I only use them for practice and getting to know what my future diet could be limited to. My goal is to be 100% covered for a short term incident, well prepared for long term emergency food in a crisis, and stocks so I don't have to buy much in my retirement years. Don't forget a water plan.

Things to purchase now are going to be area needs dependent, law dependent,. Buy tools that were designed to last a lifetime, my grandfathers 5 dollar shovel is my $50 dollar shovel, and I have inherited a lot of tools. Weapons and ammo do nothing but go up faster than inflation, let alone hyperinflation.

When others are scraping to get essentials, you can buy that lone 50$ candy bar on the back shelf.
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Old 11-10-2015, 03:54 PM
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[QUOTE=drray777;8016435]The best way to deal with hyperinflation is to have no debt.....

While, the age of the investor (and his comfort level for risk) needs to be considered, I believe the following are financial maxims:

> If an investor is trying to maximize his gain during hyperinflation, that investor should mortgage everything to the max (use other-people's-money to buy low and sell later at higher prices) and purchase hard assets.

> For deflation, that investor would want to be in cash (having sold all hard assets, including the family home), ready to repurchase those assets in the future at lower prices.
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Old 11-10-2015, 04:17 PM
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As long as you have an income that keeps up with inflation, you are better off holding debt and being able to pay it off at pennies to the dollar. Of course, physical holdings are always a good investment as well. The worst case would be to get caught holding an excessive amount of cash especially in the bank, where you wouldn't be able to access it while it is sitting there losing value by the minute. At least cash on hand could be converted to physical holdings like food, guns, ammo and such before it became totally worthless.
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Old 11-11-2015, 07:05 PM
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Hyperinflation is a hoax. The looming disaster is hyper-DEflation. That's what gives central bankers nightmares. They're fighting it off with this steady drip-drip-drip of QExx, but one day, somewhere, some banker will lose his grip, and banks (and governments) will implode into a black abyss of bankruptcy as hundreds of trillions of $$ in bad debt is finally recognized as impossible to collect. Liquidity disappears. Since nobody has any money, prices for goods fall like a dropped rock. But at the same time, when stores get emptied they are not restocked, because they don't have any money either.
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Old 11-11-2015, 07:20 PM
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Zimbabwe retailers reject Rand
Tuesday 10 November 2015
Quote:
Zimbabwe's retailers are rejecting the Rand as the value of South Africa's currency continues to slide.

The Rand was introduced as legal tender in 2009 alongside the US dollar, the British pound and the Botswana Pula when Zimbabwe abandoned its worthless currency.

However, the recent weakening of the Rand has forced locals to insist on the US dollar as legal tender. The local currency is now being shunned, a sharp contrast to its reception in 2009 among a basket of international currencies introduced to stabilise Zimbabwe's ailing economy.

The once-popular Rand coins were imported to relieve the shortage of small denominations that had forced consumers to accept sweets as change. But the currency's volatility over the years has become a headache to import dependent Zimbabwe.

The Rand’s value has halved over the last four years. Last year the Zimbabwe's Central Bank introduced bond coins valued against the US dollar. Despite the fact that they are in short supply, these are now the preferred coins.

Meanwhile, the Confederation of Zimbabwe Retailers says it’s against the law for businesses to reject the Rand as it is still legal tender, but the organisation faces an uphill battle to persuade its members to accept the weakening currency.
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Old 11-11-2015, 11:36 PM
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Quote:
Originally Posted by The Old Coach View Post
Hyperinflation is a hoax. The looming disaster is hyper-DEflation. That's what gives central bankers nightmares. They're fighting it off with this steady drip-drip-drip of QExx, but one day, somewhere, some banker will lose his grip, and banks (and governments) will implode into a black abyss of bankruptcy as hundreds of trillions of $$ in bad debt is finally recognized as impossible to collect. Liquidity disappears. Since nobody has any money, prices for goods fall like a dropped rock. But at the same time, when stores get emptied they are not restocked, because they don't have any money either.
As my previous posts state, I think deflation is the real threat. Not sure on hyper-deflation, I think more like Japan, where everything will just slow to a crawl for a generation.

Inflation sounds plausible with the world's printing presses pumping out fiat money, HOWEVER... inflation requires "demand" and, globally, there is no demand. Mortgage rates have been at historical lows for 7 years and the housing industry is still very slow. Many factors are keeping gas prices low, but demand is one of those factors. China is down because America and Japan have slowed their purchases of stuff. Mortgage debt and student-loan debt curbs consumer spending.

Baby-boomers will fly to visit grandkids or take a cruise or drive to a casino, but they are not buying homes, cars, furniture, "stuff" anymore. Not like they did when they were 30 and 40 years old. They are funding their retirement and saving for healthcare…not the things that drive an economy.

So I fear for those on this Board that buy into the inflation meme that gold is the place to be. Many deflationists think gold is headed for $750/ounce. So for those that think that deflation is in the future: rent a BOL, don't buy; sell some of your gold and hoard cash; stay very liquid and you will have a future opportunity to purchase anything you want at pennies-on-the-dollar. For the young, that will be the time to lock in a mortgage and buy 40 acres and the home of your dreams.

I agree with Old Coach, there needs to be a cleansing of trillions of dollars of bad debt.
The only question is: will that cleansing be gradual and controlled…or a SHTF moment of asset price decline ??????
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Old 11-12-2015, 12:09 AM
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I'm American so this is strictly from my perspective.

When I began to worry about all the QE and Debt we were incurring I began to wonder how to protect my family from Hyper-inflation, deflation, financial collapse or depression.

While precious metals will be a Hedge Fund, in other words they are always worth what they are worth, while money has no real value. It is just printed paper after all.

But what I came to is this, no matter how much Gold or Silver you may have, you will always be subject to the prices of the man who holds all the things you need to buy.

SO while I do have some precious Metals that is my hedge fund, most of my worth is tied up in Real Tangible Goods.

Things like Water, Food, Guns, Ammo, Coffee, Tobacco, Liquor, Tools, Fuel etc.....etc.....

If there is any type of financial disaster, or disaster of any kind really, Real Tangible Goods will always be king.

After all, if you are dying of thirst, how much is my glass of water worth to you?
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Old 11-12-2015, 12:48 AM
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Two additional threats to consider...

http://nesaranews.blogspot.com/2015/...september.html

Friday, February 13, 2015
BANK ACCOUNTS TO BE SEIZED SEPTEMBER, 2015? FROM ERASMUS OF AMERICA - FEB. 13, 2015 - 5:16 PM

Today I received a confidential phone call on behalf of a source not wanting to go public. A prime source of his reported that for September, 2015, there is an apparent plan to seize the money out of larger bank accounts in America and transfer this money to Wash., D.C. I do not laugh at such a statement as I know personally the source who supplied the one calling me with this information.

Also, I am reminded that when President Franklin D. Roosevelt declared his "Banker's Holiday" in America, my mother told me what happened to her then. She had been a child actress and accumulated a respectable sum of money. She had $300,000 in a New York City bank during the Depression which started in 1928 and suddenly President Roosevelt in 1933 closed the banks down for a few days of a declared "banking holiday." When the banks reopened, she found $5,000 was all that remained in her bank account and $295,000 had suddenly disappeared. The $5,000 was the amount required I understand for the federally insured amount of her bank account at that time.


[URL="http://www.zerohedge.com/news/2015-09-06/life-cashless-world-how-cash-became-policy-tool-%E2%80%93-interview-dr-harald-malmgren"]

Some officials in the Eurozone have recently advocated the adoption of some kind of standardized, universal cashless system in which taxable revenues, personal income and wealth could not be hidden and taxation could be automated. No doubt there would be resistance in Greece to such a system because evasion of taxes has been the most popular national sport of all Greeks since before the Roman Empire spread to Greece.
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Old 11-12-2015, 07:54 AM
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He took everyone's gold as well. Paper for gold.
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Old 11-12-2015, 11:35 AM
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Why is everyone so quick to mock Greeks for evading taxes? Why would you want to finance Zuma's jet at the expense of your own kids education and future?

I took the amount of tax that I paid since the soccer world cup (just PAYE) and saw that at 9 percent SIMPLE interest, it amounts to an amount equal to half my home loan.

But I am a debt slave so that governments can live large. Governments dont need to tax income pay. Governments can easily reduce their size (like with Reagan) and cut public spending. They tax your income because they can. It is a deeply entrenched form of taxation that no one is resisting. Except the brave Greeks.
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Old 11-12-2015, 08:52 PM
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Because I am a Christian and believe in the Word of God completely, I have to quote a verse from the Bible regarding the End Times which I believe have already begun. "A piece of bread would buy a bag of gold" comes to mind. I have put all my resources into things I can use or things my family can eat. When food becomes scarce and people are starving, who will give a crap about gold? You can't eat it and soon food will be in very short supply. If your family had a little food and there were severe shortages, would you trade it for some gold? I wouldn't, and I don't know anyone who would. If I were you, I'd put my money into a LOT of long-term food storage, hand tools, and something to protect yourself with. Things are going to get VERY bad, worse than you ever thought possible, very soon, and gold will do you no good then.
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Old 11-12-2015, 09:36 PM
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Quote:
Originally Posted by backwoodsmomma View Post
Because I am a Christian and believe in the Word of God completely, I have to quote a verse from the Bible regarding the End Times which I believe have already begun. "A piece of bread would buy a bag of gold" comes to mind. I have put all my resources into things I can use or things my family can eat. When food becomes scarce and people are starving, who will give a crap about gold? You can't eat it and soon food will be in very short supply. If your family had a little food and there were severe shortages, would you trade it for some gold? I wouldn't, and I don't know anyone who would. If I were you, I'd put my money into a LOT of long-term food storage, hand tools, and something to protect yourself with. Things are going to get VERY bad, worse than you ever thought possible, very soon, and gold will do you no good then.

While I agree with your premise Momma.

I think we also need to keep in mind that your scenario is probably the darkest that things will get. In that time you are absolutely right.
A loaf of bread may be worth more than it's weight in gold, very literally.

But we must also live in this time and in reality, and that reality is that humans tend to like bright shiny things, Gold and Money.

In the world we live in now, SHTF or TWEOTWAKI is much more likely to occur because you lost your job, or because your husband/wife got cancer, or your house just burned to the ground.

IMO Prepping is not just preparing for volcanoes, earthquakes, tsunamis, floods, fires, anarchy, or whatever Armageddon wet dream many like to think about.

I think if we don't first take care of the most likely things to happen to us we are doing our family a disservice.

If one doesn't have life insurance, health insurance, emergency funds, fire extinguishers, smoke detectors, burglar alarms, guns, etc...etc... we are forgetting to prepare for those things which are FAR more likely to happen to us tomorrow or next week.

In reality I am actually far more diversified than I stated in my previous post simply because the OP was asking about Gold and PM's, so I gave my take on them. In which I agree with you whole heartedly.

But on some point in the scale between preparing for a house fire and Armageddon there is a point that Gold or PM's may be a very Important thing to own. I just wouldn't put all my eggs in one basket.

In addition to a little bit of Gold and Silver and I do mean a little, as I haven't yet got to the point I can invest more. I also have a Pension, a 401K, a Roth IRA, an Emergency fund of 3 months in cash working on 6, potential Social Security if I live long enough and it isn't insolvent by then, along with about 9 months worth of food for 10 people and working on at least 3 more then possibly 2 years supply.

My intention is that while I find the instability of the Global Market and in particular the US Debt crisis alarming, I honestly have no idea what SHTF or TEOTWAKI will actually look like when it happens to me.

If it is cancer I want to be prepared, if it's a depression or hyper-inflation I want to be prepared, if it's a Nuclear Strike I want to kiss my loved ones and say good bye (haha) but whatever life throws at me, I want to feel like I have done what I can and then pray that God blesses me with keeping the Biker Hoard from attacking my homestead.

It is really all we can do.

Although I would really really like to have a huge underground NBC Bunker,
Is that really too much to ask for God?
.
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Old 11-13-2015, 12:40 PM
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Ross Perot is a multi billionaire and not so much the crackpot he is thought to be. He is getting out of cash and putting his money in real estate all over the country. He believes in staying tangible. Can't argue with that. Many Chinese and Japanese investors agree that US real estate is the best place to put your money and where it will surely appreciate over time.
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Old 11-13-2015, 12:58 PM
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Quote:
Originally Posted by Anishinabi View Post
Ross Perot is a multi billionaire and not so much the crackpot he is thought to be. He is getting out of cash and putting his money in real estate all over the country. He believes in staying tangible. Can't argue with that. Many Chinese and Japanese investors agree that US real estate is the best place to put your money and where it will surely appreciate over time.
in other words, migrate to Merica and buy a house?
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Old 11-13-2015, 10:51 PM
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Quote:
Originally Posted by Anishinabi View Post
Ross Perot is a multi billionaire and not so much the crackpot he is thought to be. He is getting out of cash and putting his money in real estate all over the country. He believes in staying tangible. Can't argue with that. Many Chinese and Japanese investors agree that US real estate is the best place to put your money and where it will surely appreciate over time.
This is probably a good idea for the rich. I am not so sure that the average Joe can do such. I would also suspect that Ross is not dumping all of his cash.
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Old 11-14-2015, 12:54 AM
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I also heard Warren Buffet and a few other Billionaires are buying up Railroads like they are playing Monopoly, and I seriously doubt it is because they are playing out their childhood dreams.

It makes me wonder why, Why now when most shipping is by truck?

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