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Thread: What do I do with cash with the future inflation coming?

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    Potmetal Cebu_4_2's Avatar
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    What do I do with cash with the future inflation coming?

    I don't have a lot of cash but a lot more than I thought I would have.

    Story: I have an opportunity to buy a property in the cheap (25%) needs work. Can flip for 5-8 times value. Don't want to keep cash obviously but will gold or silver save that value? I am not looking to make more money but just to at least keep that value. I read so much shit I am confused, so point being where do I protect say 50K besides cash. I want to get around the devaluation of the dollar this fall.

    I know it all and it's all opinions but this shyt might be coming up so so want newer opinions of what you think now vs years ago.

    Sorry if I sound stupid but have not had to look at this in 20 years.

    Haha, every day of my life is a new episode, not trolling been here forever. Gold don't tarnish if stashed in a well right?
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    Re: What do I do with cash with the future inflation coming?

    Don't know Bro. This is the essential quandry. Do we keep some dry powder or will it turn to shit before we can use it? The real estate market is in a bubble but cash itself is in a bubble of massive proportions. It seems the only things that aren't in a bubble are gold and silver.
    " If you are on the wrong road progress means doing an about-turn and walking back to the right road and in that case the man who turns back soonest is the most progressive man. There is nothing progressive about being pig-headed and refusing to admit a mistake. And I think if you look at the present state of the world it's pretty plain that humanity has been making some big mistake. We're on the wrong road. And if that is so we must go back. Going back is the quickest way on.” ---C. S. Lewis

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    Re: What do I do with cash with the future inflation coming?

    When the real estate bubble bursts, home prices will crash. Patience and you will get crashed prices.
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    Re: What do I do with cash with the future inflation coming?

    A long as the Federal Reserve exists, the stock market and real estate prices won't really ever go down except a few blips.

    In shitty Commie countries like Venezuela the stock markets there only go up. Central bankers print money and put it into stocks/real estate so the rich people can protect their wealth.

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    Re: What do I do with cash with the future inflation coming?

    Hold cash in case of a deflationary collapse in asset prices (stocks, bonds, real estate) but hedge your bets in case inflation does not abate:

    Start dollar cost averaging ~2% (per week) of your cash assets into:
    1. long term storage food (food will be the best performing asset over the next few years)
    2. physical silver
    3. physical gold
    4. firearms, ammo, quality tools - these will only appreciate in value

    I don't like real estate for several reasons:
    1. it is illiquid
    2. it is overpriced
    3. it is not portable
    4. it can be taxed (desperate governments will jack up property taxes bigly during the next few years, count on it).
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    Re: What do I do with cash with the future inflation coming?

    In 1866 Iowa enacted a law directed to each county treasurer, to wit:

    Sec 2. The Treasurer's of the several counties shall each keep an account, showing the amount of taxes received by them in specie, and the amount received in paper currency, which shall be examined the same as other accounts of said Treasurers.
    Why bring it up?

    Because at the time gold was money and Lincoln had just introduced fiat. The state didn't know how to account for paper so they separated it into a county where they could deal with it. This act authorizes county treasurer's to account for paper as if it were gold.

    Why does it matter?

    Paper only has value in one of these quasi-counties. Just like Iowa created an entity to deal with paper you do the same. I also call these quasi-counties corporate counties and your alter ego handling paper is also a quasi corporate being. With paper while it does have value that value only can be realized by transfer of said paper from one CORPORATION to another CORPORATION.

    I do handle paper money but I can't claim to own any. I am the front man for a CORPORATION but also have a contract with the trust that runs the CORPORATION.

    Why does it matter?

    It's a fine point but people are ignorant. I prefer to trade fairly with others and I expect the same from them. I don't want to take advantage of ignorant people but these days paper fiat is expected. There is also this. If someone expects cash that is basically a statement that they are not the owner. Cash in the real county is not fungible with anything real. This seems to be why the sheriff has no problem seizing what you think of as your property.

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    Re: What do I do with cash with the future inflation coming?

    Well, you might make a bigger buck just flipping supplies to builders.

    Before you even dive into it, make sure you can get the materials you need to renovate within your time frame.

    If you can fix and flip fast (2-4 months), I would say it is a no brainer.
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    Re: What do I do with cash with the future inflation coming?

    Quote Originally Posted by osoab View Post
    Well, you might make a bigger buck just flipping supplies to builders.

    Before you even dive into it, make sure you can get the materials you need to renovate within your time frame.

    If you can fix and flip fast (2-4 months), I would say it is a no brainer.
    Not much materials needed. It's a mobile home on .8 acres in an partially developed sub. All the properties in the sub are registered to different people/entities. There are 2 other abandon properties in the same area. Story is the well stopped working and the people moved out, this is all the details the owner remembers the renters telling her. I'm thinking the aquifer went low or dried up and think the same possible issue with the other locals however there are a few in the area that are occupied. The mobile looks like the people left in the middle of the night, clothes, furniture, toys and a whole bunch of unwashed dishes. Properties in the sub are 28-43K without a trailer. So clean the crap and the yard and list it accordingly. A 5K gamble tells me it's a no brainer. It's one of my wife's friends and she is downsizing, to her it's just a burden. Besides the mess the trailer looks to be good with no leaks, walls carpet etc appear to be fine from what I could see. The driveway is jacked so I'm going to have to invest in some labor there. If I grab it I will be protected and when it sells I need to turn $$ into something and it wont be a banker.
    Jackie did it and you know it!

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    Re: What do I do with cash with the future inflation coming?

    Quote Originally Posted by Cebu_4_2 View Post
    Not much materials needed. It's a mobile home on .8 acres in an partially developed sub. All the properties in the sub are registered to different people/entities. There are 2 other abandon properties in the same area. Story is the well stopped working and the people moved out, this is all the details the owner remembers the renters telling her. I'm thinking the aquifer went low or dried up and think the same possible issue with the other locals however there are a few in the area that are occupied. The mobile looks like the people left in the middle of the night, clothes, furniture, toys and a whole bunch of unwashed dishes. Properties in the sub are 28-43K without a trailer. So clean the crap and the yard and list it accordingly. A 5K gamble tells me it's a no brainer. It's one of my wife's friends and she is downsizing, to her it's just a burden. Besides the mess the trailer looks to be good with no leaks, walls carpet etc appear to be fine from what I could see. The driveway is jacked so I'm going to have to invest in some labor there. If I grab it I will be protected and when it sells I need to turn $$ into something and it wont be a banker.
    At 5K you probably will do fine. First thing is to call a couple of local well drillers and find out what they might know and what it would cost for a new well. A little elbow grease and a Mobile Home can look quite inviting. Water damage in the kitchen and bathroom can be a PITA.
    " If you are on the wrong road progress means doing an about-turn and walking back to the right road and in that case the man who turns back soonest is the most progressive man. There is nothing progressive about being pig-headed and refusing to admit a mistake. And I think if you look at the present state of the world it's pretty plain that humanity has been making some big mistake. We're on the wrong road. And if that is so we must go back. Going back is the quickest way on.” ---C. S. Lewis

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