This topic contains 24 replies, has 7 voices, and was last updated by 
Crow Bar 1 year ago.
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Interesting read.
Some are betting on inflation or even hyperinflation to buy their way out of their home mortgages. While that sounds all well and good, you cannot eat real estate. As Mr. Casey notes it might be $5 for an apple.
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Hmmm….. not really looking forward with glee, are we?
OldMtWoman 🙁
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We are a “property” obsessed lot compared to many in the ’30’s through the ’50’s.
Have you ever seen what people actually had back then? Clothing for example, a city dweller might have a couple pairs of pants, half a dozen shirts and two to three suit coats.
People could literally move most of their personal possessions in a suitcase or steamer trunk.
This isn’t the household goods of course but what you took with you when you moved, the items that you didn’t ship or have sent later.
The next thing that stands out is the instant gratification.
In so many things this has destroyed our society. What do we have to wait for anymore? Patience doesn’t exist.
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Our currency still had value back during the last depression. There just was not enough of it to go around. Now we have a fiat currency backed by nothing. Its not even real money as defined by law. Its an IOU… a “Federal Reserve Note” that can’t be exchanged for real money (gold/silver) but only for other “notes”.
Aside from the financial/economic factor, the real danger this time around will be from the social aspect. People are a lot different today than in 1930. That diversity rammed down out throats will be our undoing. Violence will be rampant and out of control in and near large population centers.
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JM, you can still exchange your FRN’s for gold or silver, it’s just not the ‘coin of the realm’
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Yes, I can exchange it as you say, as in “buy” it. Not quite the same as having a legitimate gold/silver-backed currency that results in stability, not the fluctuations we see today as the value of the FRN goes up and down.
The Coinage Act of 1792 formally defined the dollar as 371.25 grains of pure silver. The Par Value Modification Act from 1973 defines the dollar as precisely 9/380 of a fine troy ounce of gold. Notice each refers to “the dollar”. What we are using today (FRN) isn’t a dollar even though people refer to it as such. Its a “Note”. Black’s Law Dictionary says that the term “money” refers to coins and paper currency used as circulating medium of exchange, and does not embrace <span style=”text-decoration: underline;”>notes</span>, bonds, evidences of debt, or other personal or real estate.
Didn’t mean to get too far off the subject of the coming depression, but our currency held its value back then because it was backed by PMs. Not so now, which will greatly amplify the coming hardship.
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our currency held its value back then because it was backed by PMs. Not so now, which will greatly amplify the coming hardship.
I agree with that.
I see people mention about taking cash/dollars and buying up hard assets. Some say in PMs, others in real estate. I dunno. I cannot eat either, and if things go really bad, the only real estate you have is the one you can defend. Buying up a second or even third house, or rental property is not going to be worth much if things go truly badly.
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Its just a crap shoot. If starvation is an issue, then that oz of gold might not be worth much. Got property in the city? Then that may not be worth much. Got productive farmland to grow food? Well, that would be an asset if you can keep it. There will be those out there conspiring to take it from you, including a rogue government. After all, the government, whatever form it takes, will be obliged to reward those who supported them.
People lament the prospect of a lawless society. Well, considering someone in-charge might take everything you have, at least in a lawless society you have the option of protecting what’s your’s.
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I really think the depression will be much worse than in the 1930’s. In today’s world you have kids that think they are owed everything and don’t need to work. Mom and Dad will take care of them. I have seen that a few times. Plus, so many folks that do work live paycheck to paycheck. The days of homesteading are long gone. Back in the 20’s and 30’s, people grew their own food, made their own clothes and did whatever they could to keep afloat. Then there are the welfare people. They would not make it if things fold. No food stamps or anything else for that matter. I think the dollar as we know it would only be good for lighting a fire. As for gold and silver, not sure how that would play out as far as using it to buy things you need. You could buy land, no house on it. Just land but then you could have squatters take that over. I think best thing would be to buy a homestead with enough land to keep you afloat for a couple of years and hope it all blows over. But that is something I am not sure we could pull out of. So stocking food, having a back yard garden and doing a lot of canning and learning how to make your clothes and learning a lot of useful skills such as how to make shoes and such. it would take a lot of skills. Biggest problem would be saving enough money to pay utilities and taxes, because I don’t think in a depression, money will go very far. I really wonder if folks will survive a depression now days. I know a lot that are preparing will fair better but what about the rest that are clueless as to what is happening in this country and the fact that our government is bankrupt.
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If you read the various stories from collapsed areas, gold and silver often come up, but often not with the assumed value that most give it.
It has value to those who are in a position to sit on it for an extended period of time. The recovery time is when gold and silver have their value.
For example, that gold coin may be worth $100 today, but only 6 cans of food tomorrow, or six of them may buy your way across a border to safety.
Then there’s the risk of the gold standard. Who’s to say that the new powers that be don’t just start using the gold and silver coins at face value? Suddenly that $100 gold piece formerly worth $1200+ is again worth $100.
Precious metals are a gamble against the future. And if your preps are already in order are something to consider. But just like 12,000 rounds of ammo, you can’t eat them. They are an insurance policy that you may never get full value from.
Get the rest of your preps together first, then dive into PM’s if you still feel the need.
Property? Again, a gamble but one that can pay off before and during the SHTF. They’re not making any more of it.
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Outstanding thread and really good comments and observations.
Concerning PMs, I have had people come to a similar conclusion like WB last post.
And others absolutely demand that gold will be everything, and I will sell my whole farm for one or two of their coins. When I tell them, no, one or two of your coins buys a dozen eggs, they totally lose it! Start calling me names etc.
But they are also coming into the conversation with their own assumptions. Like during/post SHTF despite everything that is going on, they will be well fed, fit, and unscathed.
I dont think that is reality. -
I don’t think gold nor silver will help when a real SHTF situation happens. I don’t think it will help much in a full blown depression either. As far as silver goes you might get better on a melt down of that silver as it can be used in medical items such as making colloidal silver soap and such. I do have both silver and gold but got it long before 2012 when all the mess started. It is not much but I will not be counting on it for anything. I have been pondering the idea of taking it to a seller and sell it off. Some of it are collectors gold and silver and the rest is just junk silver.
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AnonymousSilver is for barter, gold is for bribes. During whatever the crisis is and if I can actually get to the drug store, I taking at least two things with me to try to buy my meds with. If the power is down, I’m bringing a list of the meds I need (for the pharmacist to work from) and empty pill bottles to prove that I actually have valid prescriptions (since the computer is down). I’m bringing thousands in cash (if the power is off, the credit and debit cards won’t work) and some SMALL gold coins (and silver coins just in case the are demanded). Drug stores don’t carry much inventory these days, so my plan is to buy ALL THEY HAVE of my meds (and my family’s meds too). Many pharmacists won’t sell any meds with the computers down, but some will. Most won’t sell ALL they have to one customer under disaster circumstances, but some will. But if plunking down one or more 1/10 oz gold eagles will get what I need, then I’m going to try it. A $100 bill might have the same effect, I’ll try that first. If the disaster is really bad, say an EMP, you might have to privately (you don’t want to start a panic as they will compete with you) explain to them that they should take what you offer and rush to the grocery store, after loading all the remaining water in their drug store into their car (assuming you or a family member hasn’t already done that). Ok, so what else might you want in a drug store? Water, first aid supplies, vitamins, OTC meds like aspirin, Tylenol, pepto, comfort foods (candy and cookies), rubbing alcohol, antibiotic ointment, etc. There lots if desirable things in a drug store for preppers that just meds.
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Whilibird is correct in that people should get the basics covered before venturing out into PMs.
I remember reading a story regarding a special forces soldier separated from his group and becoming lost in Iraq. No food. No water remaining. He trudged for miles across the arid landscape in the attempt to re-connect with friendly forces. What he did have, (and I hear all SF soldiers carry it) was a 1 oz. gold eagle. He finally stumbled into a village close to death from dehydration. He hadn’t eaten in several day, either. With no money, he was able to trade that gold coin for some food and water, which saved his life. People might say that the gold wasn’t worth much. I think that trooper would disagree.
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If things are collapsing….depending on how fast this is going….I wouldn’t want to spend too much time in any store with a pharmacy. Some dependent folks will figure out pretty quick which items rank highest on THEIR list. Make a quick transaction for prescriptions you need and couldn’t legally stock further….with whatever coin or bill they will take. And get out of there…watching your back.
I worked with the homeless population long ago. Learned that pills….ANY PILLS…have great street value among them. Some believe any pill will help them “feel better”. Don’t care what color/shape/contents of the pill. Sad. But a caution for anyone trying to get specifically needed medications….and keeping them once acquired.
OldMtWoman
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Pm are not currency but a store of value. All but most extreme cases people.will trade for those items. Offering 10,000 dollars post shft is alot of tinder and butt wipe. 8 oz eagles will get way more if there is trade. More so the ammo… if not by trade then by force.if you roll.that way.
It is at recovery from a depression or shft that pm will have thier lost value to set your family up after things have become normal again. Easiest item to trade for other items is pm closest to currency as you can get without inflation.
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@oldmtwoman,
I recently read an article about like 10 assumptions survivalists always gets wrong.
One of them is, by some miracle, they always know the right time to bug out/head for the hills/enact their SHTF plan before everyone else does.
Unless it is something truly glaring obvious in your face, then everyone will know.How many people predicted Trump would win in 2016 and there could be a civil unrest event, and bought up additional groceries/supplies/got their money out of the stock market in anticipation of a crash?
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Crowbar, whenever I read some ‘Bug out’ article I just shake my head. People really believe they will know when to go in advance of the herd, jump in their vehicle with all the kiddies, pets, and supplies and make it to Grandma’s 300 miles away. Or, just as bad or maybe worse, throw on those BOBs along with all the family and walk to safety.
Having spent decades in public safety, everyone who lives in an area subject to severe weather events like hurricanes, floods, or wild fires should have an EVACUATION plan. There is usually advance notice, and if they are paying attention to developments, have time enough to move to safety. It is a temporary move, and they have no reason not to think they will be returning once the immediate emergency is over. Call it “bugging out” if you like, but what it is is a mass relocation of a population to safer areas until the danger has passed. It is an evacuation. Evacuation is supported by public safety and service organizations to help the most people it can to reach safety.
Bugging out, OTOH, seems to be an individual preparation within the prepping community concerned mostly with some societal collapse within the more heavily populated areas, like cities, for instance. The plan consists mainly of grabbing those bags that were pre-packed and waiting patiently and “heading for the hills”, so to speak. I do wonder how many really have a safe place to go and leave in time to get there. Personally, I think for anyone living in a heavily populated urban area, their chances of success are slime to none and Slime has already left town because they likely will not see whats coming in time, or be reluctant to “pull the trigger”.
The best situation is to already be in that safe(r) location BEFORE such an event occurs. Too few are able or willing to do that.
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@namelus,
That timeline is what I question.Many say, “all you have to do is survive the first 6months/year, get through that bottleneck and you will be fine.”
Then everything will be back to normal!
But if the reporting is accurate that after a major SHTF event (oft quoted of an EMP event over the US) like 90% of the US population will be dead within a year.
IF that is the case, it will likely take some time to get back to a currency based economy. My grandchildren might see that come to light. More likely their children. -
@James,
Well said.A number of survivalists/preppers have it in their minds they will know, and then they will have their own Bug Out only lane on the highway to their Bug out location, where no one else knows where it is . . . usually the locals know it is there.
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Ah, yes. The locals. The last thing the locals want to see are ill-prepared people with a few bags of Mountain House showing up on their doorstep, if they make it that far. I know because I’m a local. *laugh*
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EXACTLY, Crowbar. LOL No one is predicting anything with any specificity…. it’s arrival, length, breadth, severity, location, direction. Me and mine are already live IN those hills people plan to run for. You would not see me going towards a pharmacy if any unrest was tilting the scales. That means grocery stores, etc too that have pharmacies. Folks are crazy about their meds and other substances. Best we can all do is keep stocked as much as possible and know alternatives for needed chemical meds…..that can be stocked up with less regulation. But really KNOW those alternatives, not hearsay.
We’re rarely even in the tiny towns around here….let alone any population center. Too busy here! EVEN SO….with wildfire, for instance. We STILL have to be ready to migrate again at a moment’s notice. Been There; Done That multiple times. Low population density location is STILL no guarantee of “safety”. No one cannot argue with wildfire easily. And that blows the theory of Head For The Hills. I’m more afraid of inexperienced folks actually making up here and setting the place on fire!
Another difference between the 30’s and now…..instant communication. A panic can be set off….accurate or not….within an alarmingly short time.
On some normal day, you’re standing in line at the pharmacy desk at Walmart, with your groceries in your cart….. and suddenly the population is panicking. They all got some “news” story on their cell phones. That’s the situation I was envisioning. Are the heart meds worth a few extra minutes? Mebbe. Mebbe not. How much will you risk for Grandma?
A Walmart also has the Sporting Goods department too….as everyone and their drunk brother knows. Certain merchandise is locked up of course…. behind glass doors. Don’t be there either.
The difference of increased population density everywhere is important. Rats in a smaller cage are beyond self-defensive. They’re mean and aggressive.
OldMtWoman ….just trying to Not Be There but few are totally hermits.
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I am reminded of a story about a German family (Jewish?) that saw the writing on the wall before the borders were closed.
Unbeknownst to anyone, the father liquidated the family business, sold the house and furnishings. He turned the entire lot into gold. And for a couple of days he spent his time in the garage.
The family went on a vacation to Switzerland, the border guards inspected the car, luggage and the family themselves, finding nothing. They proceeded with their vacation and the border closed behind then soon after.
The family reestablished in Switzerland, buying a house and starting the family business again. Seems the guards didn’t look too closely at the cars toolkit, which had a fresh coat of paint on it, seemingly unused.
The solid gold wrenches and such were all right there, strapped to the car, out in the open, right under a thin coat of black paint.
Today, who would have the foresight and ability to liquidate everything and run, just in case? Who would take that risk on a hunch?
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I noted previously about the 2016 election and the possibility of civil unrest (“It was HER turn!”) stock market crash.
The wife and I did.
We bought extra groceries, supplies, and we did pull the money out of the stock market and into a safe money market account for the time being. Caught the dead cat bounce too.
No need to head for the hills. We already live there. -
Here’s an interesting video that has a lot of PM and inflation information in pretty basic form.
Well worth the time.
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