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Page added on September 6, 2014
On The Brink Of A Major Crisis: “This Will Be A Literal Collapse of the Entire Global Monetary System”
Discussions of the possible collapse of the U.S. dollar often center around how such an event will affect the domestic economy. But the dollar doesn’t just operate inside of a bubble. It is the world’s reserve currency for a reason. Some sixty-six countries world-wide either utilize it as their primary currency or peg their own currencies to its exchange rate. What this means, as noted by Future Money Trends in the micro documentary below, is that if and when the dollar does come under attack the fallout will be everywhere. The collapse will happen simultaneously and affect billions of people worldwide.
This is 33% of the nations of the world all submitting their currency sovereignty to the US Federal Reserve.
If and when the U.S. loses its currency status this will be a literal collapse of the entire global monetary system… A system that is built on lies, fraud and theft.
As you might have guessed, when the game is finally up it will wreak havoc across global economies, financial markets and monetary systems. Should that ever happen, those who have failed to exchange their fiat currencies for physical goods of some sort are going to have a rude awakening.
As preparation for a currency collapse of unprecedented magnitude, contrarian economists and analysts recommend acquiring physical assets ahead of time. Because after the ‘event,’ it will be too late for the majority, as their dollars become nearly worthless and the cost of essential goods like food and energy skyrocket to nearly unnatainable levels as priced in dollars.
We have seen it time and again throughout recent history. Germany’s Weimar Republic, Hungary, Zimbabwe and most recently Argentina, have all experienced currency collapses. And in all instances one asset has stood the test of time and become the currency of choice when traditional systems of commerce collapsed.
Living in the heart of the Fiat bubble, Americans especially have forgotten about the one true currency. With the nation approaching nearly $20 trillion in national debt our entire system is built on a lie. But this lie affects the entire world because the US dollar is the world’s currency.
The gold market has been so distorted by governments and central banks around the world that today in an environment of quantitative easing, trillion dollar annual deficits, and negative interest rates, you can exchange your Fiat currency for an ounce of gold for less than the cost a mining company takes to produce it.
In 2013 all-in costs were $1620 per ounce, with an average price of $1411 per ounce. Recently gold has sold for less than $1300 an ounce.
Physical demand is currently setting records, with most of the demand coming from the east. Soon, North America and the world will begin to accumulate gold.
The world is on the brink of a major fiat currency crisis.
The evidence for a continued downturn in the U.S. economy and further deterioration of the U.S. dollar is clear. The likely end result is a total collapse of Americans’ way of life.
Ask yourself these three questions to help you determine your best course of action:
- What is the dollar’s most likely future?
- Are you overly exposed to dollar denominated assets like your income, savings and the country you reside in?
- Can you envision a scenario where the world turns against the U.S. dollar?
When it happens only those who own physical assets not dependent on the U.S. dollar will maintain any semblance of wealth. Everyone else will be, almost instantaneously, relegated to third world status.
44 Comments on "On The Brink Of A Major Crisis: “This Will Be A Literal Collapse of the Entire Global Monetary System”"
Pops on Sat, 6th Sep 2014 6:47 pm
So lets parse this:
US $ is half the world’s reserves
There is not enough of any other currency to replace it
66 countries are essentially co-guarantors of the dollar’s value – because it is their currency as well
Most of US debt is held by … US
I’ve been hearing since the ’70 that weimar is just around the corner that interest rates are going ballistic at any moment now But interest rates have never been this low
– and oh yeah, buy gold, LOL
If you gotta buy something, buy land, buy tools, buy ammo even but buy something you or someone you might want to trade with will actually be able to use.
Can you imagine the starving & thirsty shipwreck survivor gasping:
G o l d …
i1 on Sat, 6th Sep 2014 7:09 pm
Threats at raising interest rates are just that, threats. In an environment of increasing energy scarcity, economic growth is impossible. Hence, interest rates must continue towards zero in order for the system to continue to function.
Once the premise of a permanent decline in interest rates has been established, gold becomes the asset of choice because it pays no interest (lease rates aside). The end of economic growth may in fact herald the end of usury.
Davy on Sat, 6th Sep 2014 7:44 pm
Tell me folks where can you run to on a sinking ship with no lifeboats? This is the case with all markets today. There is just too much leverage, top liquidity, and rehypothecation. The system is brittle and unable to adjust. Confidence is holding at the top so the markets and the dollar will remain stable. Confidence is liquidity and all major investors know the global central banks have their backs. This creates a disconnect between the 1%ers and main street. Main Street is under extreme pressure at the moment and is far from healthy yet the markets have never been higher. Confidence is the name of the game at the moment and nowhere to run is the name of the game. The dollar is a part of that confidence at the top. Why would anyone want to jump off the ship if they have guaranteed prosperity? This is what the 1%’ers have and they are not stupid. The problem will not be with the dollar failing. The dollar is no worse than any of the other major currencies. China, Japan, and Europe have all taken their economies to the limits of reality with debt and credit creation. The problem will be with events that truly shake confidence that will then shake confidence in the racket or Ponzi scheme of the global financial system. If we were to have food or fuel shortages or an uncontrolled trade war for example. These events will shake the system and bring down the complex global system not the dollar collapsing. We have been waiting so long for the market and or the dollar to collapse but they keep on humming along. Yet, when a real concrete crisis of confidence occurs the racket will destabilize and I would expect the markets and the dollar will implode but that will be along with the rest of the global system.
Makati1 on Sat, 6th Sep 2014 8:48 pm
Perhaps, the idea behind reducing the dollar’s power is to reduce the Empire of Greed to inside its own borders? The system does not have to crash to accomplish that if it is done slow enough. The USD has been losing its percentage of use in world trade for the last few decades. Soon, it will be only one of many currencies in use and will have lost its power over the globe. I’m sure that China and Russia know this and that is why they decided to take down the USD.
True, much of the globalism excess will disappear, and that is part of the good thing. It’s that, or nuclear war. Which do you choose?
steve on Sat, 6th Sep 2014 9:34 pm
I’ve been hearing since the ’70 that weimar is just around the corner that interest rates are going ballistic at any moment now But interest rates have never been this low
Yes but was the U.S 16 trillion dollars in debt? Was oil running out world wide?
was most of the people in America overweight and on foodstamps? The FED did not do all the crazy stuff it has been doing lately. I could go on and on but this is not the 1970’s.
John Symons on Sun, 7th Sep 2014 12:03 am
This is the same old, same old, scare story by people trying to sell gold. Are mining companies really selling gold below the cost of production? That would be crazy, and not something, say, an oil company would do. It is more likely that intermediaries are trying to sell stocks of gold, which makes you wonder “Don’t they really think the price will fall?”. Even worse, they may be planning on buying gold back from a gullible “Main Street” at that lower price. Interest rates *will* rise, but in the UK only to 5% p.a. rather than previous highs of 10% or 15%. Oil is not “running out” fast enough to hold interest rates near 0%.
theedrich on Sun, 7th Sep 2014 12:17 am
The world economy, with or without Peak Oil, is going to start collapsing before 2020. Every explanation except the true ones will be given for the collapse. Because the truth is politically incorrect. And once the American economy begins to wither, its military will as well, leaving that vacuum that nature abhors. Instead of “American values,” we may embrace, perhaps, North Korean ones. Or maybe, depending on who replaces us, the pleasantries of Sharia law.
yoananda on Sun, 7th Sep 2014 1:38 am
@Pops
yes we’ve beeing hearing weirmar is there from years, but now Russia and China clearly get out of dollar … it’s not just words this time.
PrestonSturges on Sun, 7th Sep 2014 2:43 am
Yep that’s totally what will happen – all the countries of the world will burn big heaps of fiat currency and create a new financial system based on lumps of dirt and pine cones.
Perk Earl on Sun, 7th Sep 2014 3:59 am
“This is the same old, same old, scare story by people trying to sell gold.”
That’s it in a nutshell, J.S.
If someone knew stepping on a landmine would blow their legs off, would they?
If all these countries know the world economy will crater if the keystone fiat currency was no longer the reserve currency, would they? No, but the dollar is losing some percentage of it’s use as the to currency. But it won’t get replaced or eliminated.
Davy puts it best as to what will happen in my opinion, with; “Yet, when a real concrete crisis of confidence occurs the racket will destabilize and I would expect the markets and the dollar will implode but that will be along with the rest of the global system.”
Stoneleigh talks about confidence in the system. It took a long time to come back after the mortgage meltdown, and now it is back but hinged on flimsy fiscal policies. The system relies on confidence for banks to lend and people to feel like the future is bright enough to start or expand a business, to buy a home, etc. Once the confidence goes, loans stop, growth stops, the system goes back down and how they prop it up again is anybody’s guess.
Boat on Sun, 7th Sep 2014 7:45 am
So I buy a tv for less money that uses less electricity that is much lighter and takes less people to make it and because of these efficiencies the economic system will collapse because of less growth? Stay away from the mushrooms in the dung.
JuanP on Sun, 7th Sep 2014 10:00 am
I chose a life of simplicity and poverty and don’t own any gold, other than my $50 wedding ring stuck somewhere in a closet or a drawer, I don’t know where. I would neer buy gold even if I had a gazillion dollars. You can’t drink gold, you can’t eat gold, you can’t burn gold. My wife has some inherited gold trinkets in a bag somewhere, and her $50 wedding ring in some drawer or closet.
If I were to buy a metal, being the realist I am, I would buy lead, like Pops suggested.
The best investments are land, defensible shelter structures made of concrete, stone, and/or baked clay bricks that can’t be burned down, food, water, tools, guns and ammo. The future is not for romantics like me!
rockman on Sun, 7th Sep 2014 11:50 am
“Soon, North America and the world will begin to accumulate gold.” From where…others trying to maintain gold reserves? And what would that do to hold prices? Oh, wait, we just saw how well that dynamic worked recently: lots of folks lost the assed with the old price pull back. And has anyone other to calculate what an insignificantly small amount of physical gold there is compared to the current total value of the global monetary system? So what would a major move towards gold produce: the same hyperinflation (of gold) that they propose would bring about “collapse”. Which would likely bring about deflation of gold destroying $billions in assets just as it has done to the gold bugs recently.
Which isn’t to argue that the global economy isn’t heading for tough times ahead (which many are already experiencing). But this gold/reserve $/monetary hype is beginning to sound like a battle for the best cabin on the Titanic after it hit the giant ice cube.
Stephen on Sun, 7th Sep 2014 11:52 am
People don’t realize that most other currencies are fiat as well (this includes the Euro, Yen, Ruble, Yuan, etc). If the world economy crumbles, I doubt it will be all weimar style hyper-inflation all around. I predict basic needs will inflate, while things that no longer work (or need too much energy to run) will hyper-deflate, and we’ll start seeing empty stores. If the number of layoffs skyrockets, and suddenly the unemployment percentage massively increases, likely what we will face is a massive debt default, destroying banks and likely the top 1% will have their income falling. If the problem becomes so severe, foreclosures, repossessions, and replevin will be unlikely to cause the banks to be repaid in full. This means that the insurers fail, and then the banks fail. People likely will return to barter, especially if the metal mines fail due to peak coal or peak oil. After a period of anarchy, then the economy will re-emerge as a different economic system, probably on the sense that endless growth will not be the model forward. I predict many debts will end up being jubileed.
Davy on Sun, 7th Sep 2014 12:39 pm
Juan, I have gold and really enjoy buying it. I have a nice case I keep the 1/10oz eagles in. I believe in gold along with cash as one bullet in my survival gun. I don’t trust banks but keep enough for normal business and expenses. I have food, whisky, guns, ammo, land, postmodern man equipment, outdoor gear, tech clothing, lots of tools, hardware, necessary supplies, library, AltE, fuel storage, garden, cattle, cattle equipment, knives, axes, saws, and canoes/kayaks . My point is diversify your survival portfolio.
Davy on Sun, 7th Sep 2014 12:59 pm
Stephan, the spectrum of possibilities are large. Many areas have comparative advantage so allot will depend on how, where, and when a contraction occurs. Food shortages will affect people different than fuel shortages. War, financial collapse, social unrest will vary by location and adjacent location reactions. At which time of the year a crisis develops may matter. Fuel shortages in a cold northern hemisphere winter is not a good event. I see the collapse scenarios like a casino. Lots of games of chance to play. The descent will involve chaos, randomness, dysfunction, and luck. The best one can do is a risk management analysis of one’s personal, local, regional, and national situation. I know what my risks are. I know possible scenarios given a particular crisis for my local. I have basic preparations to mitigate many of these crisis for my local. I will say this there is never enough prep insurance but if you have the basics covered that goes a long way. Personally I see the global financial system failing at some point just because that is what happens to Ponzi schemes. They just fail and often for odd reasons. Yet, I have given up on a market crash in the near term (6months or so). IOW I don’t watch the market daily for the crash. I used to watch daily for market failure signs. This racket can go on for some time if confidence is maintained. I will say this I am excited about the coming descent not because I will find happiness in the pain and suffering but because I will have a chance to utilize all my preparations. All my preparations may fail but still it is like taking your dragster to the track. You get to see the results of all that work back at the garage.
Northwest Resident on Sun, 7th Sep 2014 1:27 pm
I doubt that the financial markets will collapse independent of some major black swan or other earth-shattering global event. The reason why, and this point has been made by much more financial-savvy individuals than myself, is that in today’s world the financial markets are totally manipulated and controlled. They do not react on their own in a natural way like they used to. Witness events like the downing of the MH17 airliner, continued fighting in Ukraine, ISIS taking over prime oil producing territory –what does the stock market do? It goes even higher. What WILL crash the system is global energy shock — anything that results in gas lines, food delivery trucks out of gas along the side of the road, commercial jetliners grounded due to lack of fuel, factories closing due to not enough energy to operate — those kinds of things. Until fuel energy shortages hit us up the side of our head, or a major terrorist event (i.e., dirty bomb goes off in New York, suitcase nuke explodes in London, etc…), the powers that be will continue to manipulate the financial markets as they have been, injecting new money (zeroes and ones on the computer) whenever needed to balance things out. And gold?! When collapse finally does finally set it in, I’ll trade you a few of my eggs for a few ounces of your gold. No deal? Fine, go eat your gold. Probably one the dust has settled post collapse and local economies start picking up, gold/silver will be a good thing to have, but it will be spent on food. So having food and the ability to produce food is probably just as good as having gold/silver.
JuanP on Sun, 7th Sep 2014 1:35 pm
Davy, I am a financial illiterate, particularly where personal investment and finances are concerned. I have learnt a little about macroeconomics, but my ignorance there is deep, too. Diversifying is always smart. So, OK, when I save my first gazillion I will buy some gold.
Northwest Resident on Sun, 7th Sep 2014 1:40 pm
Juan, other than being financially illiterate, you have all the appearances of being a gentleman and a scholar. Davy looks like he is doing Just Fine. Once I have my little food production center maxed out, and once my closet can’t hold anymore 12-guage double odd buckshot or 9mm hollow point tactical, THEN I might start thinking about buying gold/silver. Or maybe I’ll invest in some day labor diggers to come over and dig a big hole and pour concrete to create a “safe room” shelter… To be honest, if/when we do get hit with that epic collapse that we all suspect (and know in our hearts) is going to happen, those of us who survive the first six months to one year will only need to go door-to-door in our neighborhoods (as in, kicking the door down) and taking the gold/silver laying around in the homes that have been vacated or their owners dead from one cause or another.
JuanP on Sun, 7th Sep 2014 1:45 pm
I think that at this point, IMO, the bursting of the US shale oil bubble is the most likely potential precipitaing event of the next global recession, bu there are multiple bubbles that could blow up and start the whole thing.
The problem with the shale bubble is that it will meet limits that confidence can’t overcome and blow up at that point. This will likely (based on recent price trends) cause a peak in global liquid fuels production that will force economic contraction.
Northwest Resident on Sun, 7th Sep 2014 1:48 pm
JuanP — Yeah, that’s the most likely cause of the fuel shortages that I was thinking about, near term. When the American “energy independence” illusion is shattered, there is no telling what the result will be, but it can’t be good. Another distinct possibility, in my opinion, is terrorist or other insurgency attack on Saudi oil infrastructure that disrupts extraction/delivery — that would be truly devastating, a true shit hits the fan event.
MSN Fanboy on Sun, 7th Sep 2014 3:59 pm
“those of us who survive the first six months to one year will only need to go door-to-door in our neighborhoods (as in, kicking the door down) and taking the gold/silver laying around in the homes that have been vacated or their owners dead from one cause or another.”
LOL, i had exactly the same thought NR.
Welch on Sun, 7th Sep 2014 4:16 pm
We’ve been hearing this warning for what, ten, fifteen years? I’m not going to hold my breath. Or start stockpiling canned good and ammo.
PrestonSturges on Sun, 7th Sep 2014 8:11 pm
I always say that having gold or the being rumored to have gold is a good way to have someone take you hostage and torture for 3 days to find out where the gold is. They won’t do that for turnips!
Makati1 on Sun, 7th Sep 2014 8:37 pm
Lots of ideas, both realistic and fantasy above…lol. Odds are, none of them will work out the way they thought. I do not own gold other than in a few class rings, etc. I own a bit of silver in the same forms. Neither worth bothering with.
But, I wonder what would happen if the Yuan was suddenly tied to gold? After all, China is gathering it like a black hole swallows planets and could have (probably has) north of 10,000 tons already. The US may not have any. India and Russia are hording it also.
Gold may not have a real value, but the historical value is deep in everyone’s minds. When you have enough to eat, a place to shelter and coverings for your body, gold may again have real value as trade goods. I will not live long enough to see it, but it could happen.
GregT on Mon, 8th Sep 2014 12:12 am
“I always say that having gold or the being rumored to have gold is a good way to have someone take you hostage and torture for 3 days to find out where the gold is.”
Except that you have failed to contemplate one little detail. Those that have been stockpiling gold, are mostly the ones that have also been stockpiling the other necessities for a SHTF scenario.
Gold is bought after land, food, guns, and ammo. At least in my circle of ‘friends’.
Food, shelter, and security, in that order. Monetary security comes last.
Ralph on Mon, 8th Sep 2014 7:18 am
I keep seeing web stories about the German gold reserves, which have been stored in the US for safe keeping for decades. The story is, that a few years ago Germany decided to keep the reserves in their country instead, and asked the US to return them.
The US said ‘No’.
Anyone got info on that?
Davy on Mon, 8th Sep 2014 7:57 am
Welch, 10 or 15 years is a very short time but the problem is this is a long time for humans in our fast pace short-termism. You should realize the world is subject to nonlinear changes and often follows the changes seen in the phase change of water.
Greg, Juan, and NR. It is not critical to have gold but if you have the ability to buy some I recommend it in the 1/10 oz sizes. It is a compact and dense form of wealth storage that has over the ages stood the test of time. I talk about having gold but I think you all realize I am not that stupid to let it lay around the house. Anyone that wants to come hunt me down and find my gold will first have to get by my 12guage 00buck, (2)45’s, and (2) 308 assault rifles. If you manage that then good luck finding it. My one worry about my gold is where I put it. As I get older I am losing my mind so I may forget where I hid it. Besides are you all sure I am real or just telling you all a line of shit because that is easy to do on the internet. My financial recommendation is avoid too many paper financials but if you are in them be ready to unload them quickly with a plan. Hard physical assets are the name of the game now. They may not produce a return in today’s economic climate but they are real not Ponzi scheme fantasy.
GregT on Mon, 8th Sep 2014 9:46 am
I started investing in gold a very long time ago, back when it was around 350 dollars an ounce. I have as much concern about somebody coming for my gold, as I do about someone coming for my savings accounts, or other investments. They are equally secured, and quite honestly, it would be easier for someone to clean out my savings accounts, and more worth their while.
In a collapse scenario, people won’t be scouring the neighbourhoods looking for gold, silver, or paper. They will be looking for turnips. If hungry enough, they might even kill for turnips. As mentioned by some above, you can’t eat gold, silver, or paper.
If/ when a stock market/ currency collapse occurs, paper will quickly become worthless. If you can’t feed yourself at that point, nothing else really matters. After a period of time however, if a reset finally takes place, I have little doubt that precious metals will again be accepted as trade. 6000 years of confidence, along with central bank and sovereign nation hoarding, tells me so. If not, at least I will own something shiny, rather than fire starter or toilet paper. If a reset does not occur in my lifetime, I will have something to pass on to my children, along with land, the knowledge and ability to produce food, guns, and a lifelong supply of ammunition. Did I mention lead, brass, powder, and primers?
JuanP on Mon, 8th Sep 2014 10:02 am
Davy got me thinking. I have all my savings in emergency supplies and gear, and cash in US dollars. My cash is in a safe box and provides no interest and loses value as a consequence of inflation.
I concede the point, for richer people who already have all the necessary supplies, it makes sense to have some gold, but it is the least important of things to have. But there is the possibility that some form of trading survives for a while, and gold has an historical role there. And if forced to move, the gold might give someone, and his family, a second chance elsewhere, too. Are we going back to the Wild West?
I have always been focused on more basic survival issues, but I know my approach to things is extreme and inadequate for the majority of human beings, particularly those with children who have to think more long term.
JuanP on Mon, 8th Sep 2014 10:05 am
Greg was on point, too!
GregT on Mon, 8th Sep 2014 10:08 am
Juan,
Food for thought:
https://www.youtube.com/watch?v=s3LdNxV0yPM
Or perhaps more appropriately, food for gold.
JuanP on Mon, 8th Sep 2014 10:22 am
Thanks, Greg. Very interesting.
Northwest Resident on Mon, 8th Sep 2014 11:09 am
JuanP — You are right — keeping cash under your mattress or in a box somewhere doesn’t make sense because it just depreciates in value over time and can possibly lose all of its value at the drop of a hat (or drop of global economy…). I personally think a little gold and silver is good to have “just in case” — but for me, long term food and bullets combined with my ability to produce food is what makes the most sense. For somebody living in a big shitty where the first need would be to hit the road and escape once TSHTF, more gold/silver (and bullets) might be a better option. I think it depends on where a person lives, what resources that person has at his/her disposal, and other physical realities would help determine the amount of gold/silver one needs to hoard for an emergency of the type we are discussing. A few ounces of gold would be very hard for someone to say “no” to, in the right circumstances…
GregT on Mon, 8th Sep 2014 11:26 am
NWR,
Keeping cash in a savings account right now doesn’t make any sense. If the official inflation rate is to be believed, savings are depreciating by around 2% per annum. If the shadow stats inflation number of 6% per annum is to be believed, savings are losing closer to 5% per year. I’m not sure about you guys in the States, but here in Canada we are also taxed on interest payed with a capital gains tax, which for me equates to a further reduction of around 35% of any interest made.
The money lenders are bleeding us all dry.
Northwest Resident on Mon, 8th Sep 2014 12:01 pm
GregT — Yeah! Exactly. Either put your cash in equities, because with QE and market manipulation equities are soaring like paper eagles right now and have been for quite a while — but they could crash and burn at any time. Or, alternatively, put your cash into a box, where it loses value steadily but surely and could turn into fire-starter at any moment. Or, door number three: Put your money into gold, silver, bullets, long term food storage, doomer hideaway, food production capability, iron bars for your windows, anti-zombie security measures. Then of course there is always the option to just party for all you’re worth right now, blow it all having a really good time because, you know, wtf!
Hey, I missed you. Welcome back!
JuanP on Mon, 8th Sep 2014 12:38 pm
I’ve been saving for land and didn’t want to invest in something I wouldn’t know when to get out of, and I don’t know or understand most markets well enough to invest in them for the short term. This is not long term savings. I made a little money investing in Real Estate, but I know and understand the RE market. I saw the RE bubble burst before it happenned, and got out in time. Only property left is one beach condo that I will sell for around 80% more than I paid 10 years ago. I have already moved out.
Davy on Mon, 8th Sep 2014 1:12 pm
Greg, Juan, NR, I recommend a little cash away from the bank. What happens if the bank closes or the gov decides to confiscate wealth? What about when the ATM quits working? I keep some cash in a money belt for quick access if needed. I also have cash in thermal pouches. I also recommend not hiding gold or cash at your house. There are other ways to hide it . Of course that is a secret. I keep enough cash in the bank to function economically in today’s world no more. I no longer trust the banks or the government.
GregT on Mon, 8th Sep 2014 1:27 pm
Davy,
My wife and I have always kept a couple of months supply of cash outside of the bank, and not hidden at our home. A very prudent thing to do in case of natural disasters, extended power outages, or other unforeseen events.
Many people buried gold during the gold confiscation of 1933, and for various other reasons throughout history. People are still finding some of that buried gold today.
http://www.sfgate.com/news/article/Gold-Country-couple-discover-10-million-in-5266314.php
Davy on Mon, 8th Sep 2014 4:31 pm
Greg, I will leave my kids a treasure map to find the gold because someday I am sure I will have dementia.
GregT on Mon, 8th Sep 2014 6:46 pm
I hear ya Davy.
PrestonSturges on Tue, 9th Sep 2014 1:58 am
We are still struggling to sell over 200 acres of fantastic farmland. It’s all tree stumps, ticks, and mosquitos – because it’s land, not a “farm.” But it’s black loam 20 feet deep with a water table about 8 feet down and access to a county highway. It ain’t no hobby farm, it’s land, and you can’t give it away.
Davy on Tue, 9th Sep 2014 6:42 am
Preston….real estate is location location location. We are dying to get our hands on a nearby farm here. I wish your raw land were next to me. I specialize in land reclamation for farms let go in decay. Stumps are a bitch though. The root wades hold dirt so they are very hard to burn. I am heading out shortly to burn a huge amount of brush. The other day the fire department showed up because I was burning fields and the smoke was seen for miles prompting multiple calls. Sometimes I let go “mad man” fires when conditions are just right.
coolhand on Tue, 9th Sep 2014 9:03 am
All-
RE: The discussion about the value of gold – what would happen to the value of gold if it replaced US Treasury bonds as the settlement asset of choice for the trading of oil?
In a peak oil world, it no longer makes sense to have a bond yielding 0% with a maximum face value of $1,000 per bond be the settlement asset because peak oil means those bonds will collapse in value against oil (but not gold) over time.
Do you think oil exporters understand this? China?
Gold = oil.