Who here has made a strong effort to move their wealth out of digital repositories and into physical assets and commodities? Anyone strongly against moving their wealth out of computer systems?
I feel uneasy about having money stored on a server somewhere, especially considering how tough things are going to get. When you put money in the bank, it isn't really yours anymore. It becomes part of the fractional reserve system. If the system really breaks hard, then most banks will fail. Then the FDIC insurance will probably take 5 years to pay you back in depreciated dollars.
I read the Mogambo Guru whenever I can, and seems like every passing day leaves our financial system deeper into the abyss. There is a point of no return, and that was long passed. A complete breakdown is inevitable. That said, who still trusts the "system" enough to keep their wealth so out of reach?
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From Digital to Physical Wealth
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From Digital to Physical Wealth
by Falconoffury » Tue 04 Sep 2007, 14:00:16
"If humans don't control their numbers, nature will." -Pimentel
"There is not enough trash to go around for everyone," said Banrel, one of the participants in the cattle massacre.
"Bush, Bush, listen well: Two shoes on your head," the protesters chant
"There is not enough trash to go around for everyone," said Banrel, one of the participants in the cattle massacre.
"Bush, Bush, listen well: Two shoes on your head," the protesters chant
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Falconoffury - Expert
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Re: From Digital to Physical Wealth
by SinisterBlueCat » Tue 04 Sep 2007, 14:39:18
$this->bbcode_second_pass_quote('Falconoffury', 'W')ho here has made a strong effort to move their wealth out of digital repositories and into physical assets and commodities?
ME!
my great grandparents came from ireland fairly well to do in the last years of the 19th century. they settled on the west side of chicago where they opened several taverns and had two rental properties.
after the crash, they lost everything that was in the bank (laSalle) but they were able to make it alright because they outright owned physical assets.
they owned free and clear the rental properties, and were able to collect rent.
the taverns were a little different. they were able to keep their original tavern, but the others closed because of prohibition. however, with lizzie and patrick both manning the bar, they were able to stay ahead of the officials and run a nice little prohibition era tavern.
also, they had no debt.
lesson learned for me is all bank deposits are subject to confiscation.
it is kind of interesting to note that in the middle of the great depression, congress enacted the glass stegall act. this act was meant to keep banks and wall street on opposite sides of the ring...and that a mere 8 years ago, bill clinton took the final axe to the act by repealling it in 1999...and how little time it took for the same sort of situation as in 1929 to develop here in 2007.
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SinisterBlueCat - Tar Sands
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Re: From Digital to Physical Wealth
by perdition79 » Tue 04 Sep 2007, 14:42:34
Gold is king! I wouldn't trust my money as ones and zeroes ever again.
http://www.thepeoplescube.com/
"We are building a religion; we are building it bigger. We are widening the corridors and adding more lanes."
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"We are building a religion; we are building it bigger. We are widening the corridors and adding more lanes."
Cake - Comfort Eagle
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Re: From Digital to Physical Wealth
by mmasters » Tue 04 Sep 2007, 16:00:37
I think a mix of hard assets and diversified digital assets. TBTB have no intention of leaving fiat or destroying people's trust in it so IMO they wont rock the boat too extreme.
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Re: From Digital to Physical Wealth
by SinisterBlueCat » Tue 04 Sep 2007, 16:02:46
mmasters, while i doubt that TPTB would abandon fiat completely, i think it is possible that they would swap one for another, no?
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Re: From Digital to Physical Wealth
by mmasters » Tue 04 Sep 2007, 16:33:25
Yeah, the next step is to upgrade to continental fiat like the EU. We'll have to have ugly problems with the dollar/canadian dollar before it can be proposed and accepted.
Wonder what they'll call the new central bank, the Federal Reserve of North America?
Wonder what they'll call the new central bank, the Federal Reserve of North America?
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mmasters - Intermediate Crude
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Re: From Digital to Physical Wealth
by Falconoffury » Tue 04 Sep 2007, 16:42:20
$this->bbcode_second_pass_quote('', 'T')BTB have no intention of leaving fiat or destroying people's trust in it so IMO they wont rock the boat too extreme.
Media propoganda is a growing factor in holding people's trust in the dollar. Ben Bernanke said he won't cause another depression. He won't allow the dollar to deflate as it did in the great depression.
Since the dot com bust, the entire financial system has turned into a monster. Nobody knows who owes what money to whom. Derivatives have been packaged and repackaged into ever more complicated forms. Meanwhile, where is the real production? In other countries of course. The USA would be in the stone age without imports.
The whole system is backed by more faith than ever before. Foreign countries have faith in the USA and the dollars they keep recieving for their hard work. When the foreigners wake up and realize that there is no light at the end of the tunnel, the crash will really get underway. When they realize that the USA is a sinking ship, they will abandon it. Then that forementioned stone age will occur.
I don't have faith in a system that is backed primarily by faith. Banks and other financial institutions can crash lightning fast, and your money can be wiped out faster than you can blink your eye. At least physical assets within your reach can be hidden and/or protected. Even cash is better than nothing. At least you know how much is in your pocket. Banks don't usually warn depositors before they are going to fail. They like to tell you after the fact.
"If humans don't control their numbers, nature will." -Pimentel
"There is not enough trash to go around for everyone," said Banrel, one of the participants in the cattle massacre.
"Bush, Bush, listen well: Two shoes on your head," the protesters chant
"There is not enough trash to go around for everyone," said Banrel, one of the participants in the cattle massacre.
"Bush, Bush, listen well: Two shoes on your head," the protesters chant
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Falconoffury - Expert
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Re: From Digital to Physical Wealth
by mmasters » Tue 04 Sep 2007, 17:34:11
$this->bbcode_second_pass_quote('Falconoffury', '')$this->bbcode_second_pass_quote('', 'T')BTB have no intention of leaving fiat or destroying people's trust in it so IMO they wont rock the boat too extreme.
Media propoganda is a growing factor in holding people's trust in the dollar. Ben Bernanke said he won't cause another depression. He won't allow the dollar to deflate as it did in the great depression.
Since the dot com bust, the entire financial system has turned into a monster. Nobody knows who owes what money to whom. Derivatives have been packaged and repackaged into ever more complicated forms. Meanwhile, where is the real production? In other countries of course. The USA would be in the stone age without imports.
The whole system is backed by more faith than ever before. Foreign countries have faith in the USA and the dollars they keep recieving for their hard work. When the foreigners wake up and realize that there is no light at the end of the tunnel, the crash will really get underway. When they realize that the USA is a sinking ship, they will abandon it. Then that forementioned stone age will occur.
I don't have faith in a system that is backed primarily by faith. Banks and other financial institutions can crash lightning fast, and your money can be wiped out faster than you can blink your eye. At least physical assets within your reach can be hidden and/or protected. Even cash is better than nothing. At least you know how much is in your pocket. Banks don't usually warn depositors before they are going to fail. They like to tell you after the fact.
I agree the US financial system is bad off and will take a big hit, I don't think the stone age will happen though. The global financial system will survive, there's always other currencies, gold, equities, etc... Some of that may go insolvent or get seized, hard to say.
Wont be any surprise to see Bernanke inflating the dollar to fight deflation, while at the same time triggering a level of international abandonment of it. The CBs can't take front stage and initiate things because it's too high visibility and political, they will have to work under some unexpected pretext.
Perhaps our new forth coming currency will be introduced upon some need to unite multiple countries together in war? I can see Bush quoting Lincoln in creating the greenback to fund the Civil War, that today we must join together as brothers and sisters, fellow countries, to follow a path much like that of Abraham Lincoln in funding the civil war. That is to unite in a common cause, to fight the axis of evil.
I don't like systems backed by faith either but they sure are successful especially with the dumbed down masses. Christianity, Islam and many other religions being great examples.
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mmasters - Intermediate Crude
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