Re: what are some possible scenario's when the dollar crashes?
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Originally Posted by Sparky
Joe, your explanations clarify why lack of faith in future ability to pay can cause a disruption to distribution and availability of product.
However, this is completely different than lack of faith in the currency itself. That seems to be what is being confused in this discussion.
I think what's being confused is the dollar and credit. There won't be a dollar collapse any time soon but we may very well experience a global collapse of credit. And credit constitutes the vast majority of what we call the money supply. The majority of high-powered banks are running on government sanctioned accounting fraud to keep their doors open and it's just a matter of time before it all catches up with them, and with us.
So Sparky is right, we shouldn't worry about a dollar collapse, we should be worrying about credit collapse, which will be far more pervasive and devastating.
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Re: what are some possible scenario's when the dollar crashes?
Quote:
Originally Posted by Carl
Quote:
Originally Posted by Sparky
Joe, your explanations clarify why lack of faith in future ability to pay can cause a disruption to distribution and availability of product.
However, this is completely different than lack of faith in the currency itself. That seems to be what is being confused in this discussion.
I think what's being confused is the dollar and credit. There won't be a dollar collapse any time soon but we may very well experience a global collapse of credit. And credit constitutes the vast majority of what we call the money supply. The majority of high-powered banks are running on government sanctioned accounting fraud to keep their doors open and it's just a matter of time before it all catches up with them, and with us.
So Sparky is right, we shouldn't worry about a dollar collapse, we should be worrying about credit collapse, which will be far more pervasive and devastating.
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I wasn't saying we should worry about a dollar collapse first. IMHO that'll come last when everyone finally sees it for the monopoly money it is.
Re: what are some possible scenario's when the dollar crashes?
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Originally Posted by Joe King
All you needed to see was our collective level of debt rising faster than our collective earnings productivity, ...... I realized then that unless some other form of obtaining easy credit manifested itself, the party would soon be over.
Fixed it for ya ;D
We have to realize that we need to produce more than we consume.
A monetary system crash is cooked in the books; like flipping a coin and calling heads or tails (inflation/deflation), we don't know which outcome we got until the coin lands; but we KNOW the coin WILL land, it is part of the game. So isn't the production of the coin in the first place. Right now instead of using an honest silver quarter, the coin flippers have convinced us to call "heads" or "tails" (inflation/deflation) with a chocolate coin on a hot day at noon on an asphalt parking lot. When the coin melts, everyone knows the game is over regardless of whether it landed heads or tails up.
Can we come to this realization before the crash or after? We need to get out of the sun, off the asphalt, and back to work and stop playing games. If we dont produce more than we consume, no monetary system is going to work.
A critical component of any monetary system more complex than bartering is the concept of time; beyond the present tense. If all we focus on is present consumption without a realization of the importance of producing with the future in mind, the world will become a very ugly place; There is a monetary system that IS even simpler than bartering…… plundering for the moment.
The monetary system shenanigans will continue until there is a human energy crisis as energy is the currency of all life. The ultimate currency correction is rapidly approaching and it is very clear that as a civilization we are doing far too little to preserve our civilization as 6 billion humans know it. The ultimate currency correction may deflate humanity by 90%. This may not be a bad thing-for the 10% that make it to the next civilization.
Re: what are some possible scenario's when the dollar crashes?
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Originally Posted by Heimdhal
preps and barter are for during SHTF
PMs are for AFTER SHTF when things begin to normalize, so you have a vehicle to transfer your pre-SHTF wealth into the new system.
I dont know why people think theres going to be this mass junk silver trading going on. How many people in your daily life do you know that even has a clue as to what a silver merc is or what its worth today? What makes you think they are going to have any after SHTF to give you to buy some beans off of you? Are you going to sell your last pound of rice for 5 mercs and a 1/10 panda?
Common goods will be traded for common goods. You've got and excess of rice, I've got an excess of flour, we swap. This is assuming a total collapse of any currency trading. Maybe youll get some jewlery if you're lucky.
Eventualy a new currency system, whether fiat or not, will ineveitably take over. This is what your PM's are for.
I don't see the supermarket taking silver for food.
May not be much food there anyhow
But there will be folks like Ponce that will take silver for TP.
That's why I like silver dimes :)
Thats said, I don't think the Dollar will completely collapse...But it can't hurt to (try to) be prepared
Re: what are some possible scenario's when the dollar crashes?
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Originally Posted by StackerKen
I don't think the Dollar will completely collapse...But it can't hurt to (try to) be prepared
Military script. When the black market gets too out of hand they announce you have a week to turn them in or else they become valueless. Have too many of them and questions will be asked "how did you get so many" and "did you get them by legitimate means".
Re: what are some possible scenario's when the dollar crashes?
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Originally Posted by palani
Quote:
Originally Posted by StackerKen
I don't think the Dollar will completely collapse...But it can't hurt to (try to) be prepared
Military script. When the black market gets too out of hand they announce you have a week to turn them in or else they become valueless. Have too many of them and questions will be asked "how did you get so many" and "did you get them by legitimate means".
If that were to happen, people who have "too many" will make a mad rush to try to convert them into some type of tangible asset in an attempt to preserve their "wealth".
Unless of course all commodity transactions are banned for that same week.
Really though, if you want to get technical about it aren't we already using script?
Re: what are some possible scenario's when the dollar crashes?
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Originally Posted by Gknowmx
Quote:
Originally Posted by Joe King
All you needed to see was our collective level of debt rising faster than our collective earnings productivity, ...... I realized then that unless some other form of obtaining easy credit manifested itself, the party would soon be over.
Fixed it for ya ;D
:) Eh. Whichever way you prefer it is fine by me, because in my book they're the same.
i.e. you can't earn if you're not producing something someone else wants. Be it an automobile, or an earnings report for Google. Or anything in between.
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We have to realize that we need to produce more than we consume.
Most definitely.
Re: what are some possible scenario's when the dollar crashes?
Quote:
Originally Posted by Joe King
if you want to get technical about it aren't we already using script?
This is my point. A FRN is military script.
If there is a rush to commodities to get rid of soon to be worthless paper then the ONLY motive a seller of a commodity would have to accept paper before the deadline is that he would believe he could convert it legally to the new system. There is a degree of risk involved for the holder of the commodity.
Re: what are some possible scenario's when the dollar crashes?
Fekete had something to say about this: http://www.professorfekete.com/artic...tsOverlook.pdf
For those here thinking in linear terms (ie slow condinued devaluation of the dollar), Fekete offers a non-linear explanation worth considering.
Re: what are some possible scenario's when the dollar crashes?
Good GRIEF!
Total monetary collapse? Take the Rodney King riots and extrapolate them out times 1,000 in every major city in America.
Grocery store accepting silver?
Stores will be stripped bare in HOURS.
Fires - nobody to put them out.
Rampant crime, murder, robbery, theft, looting - no cops.
No trash collection.
No infrastructure maintenance (streetlights, potholes, water/gas mains).
Power outages - nobody to bring it back online.
There are not even enough military to enact Martial Law in every major U.S. city, let alone everywhere.
If your plan is to 'bug in', all I can say is, good luck!
