Hyperinflation Warning

POSTED BY: out2theblack
UPDATED: Saturday, August 8, 2026 19:27
VIEWED: 4736
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OUT2THEBLACK

Friday, July 23, 2010 4:02 PM

Quote:
Originally posted by Bytemite:
Quote:
Don't imagine it , then.

You got a Berkefeld water filter ? Might wanna look to that...

Uh, actually, I have one. Katadyn brand. I'm a hiker, I live in Utah. I'd be stupid (and dead) if I didn't.

...If you have a gun, then that'll secure your own water and survival, but you're really seriously talking actual water wars if it gets this bad. I'm still standing by my claim that out here water will be a lot more precious than gold.

Not disagreeing , baobei...

The reason to have some metals is strictly for the purpose of preserving some wealth while planning and purchasing for long-term survival needs...

When we began this discussion more than a couple years ago , gold was trading in the $ 750 /oz range , and this year , has been above $ 1200. There's likely a lot more upside in gold , but the prospects for silver are probably far better.

Prospects for Federal Reserve Notes ? Long-term , luxury 'branded' toilet paper...

BYTEMITE

Friday, July 23, 2010 5:14 PM

Speaking of which, I really need to look into that crossbow thing Frem mentioned in response to the limitations on availability of gunpowder. Very cool.

And, okay, yeah, obviously the dollar is going to go to hell, but whether the gold investment gambit pays off is really a matter of whether people have faith in any form of currency, gold standard or otherwise. That's not something I think we can predict... Though I guess if you're running with people who ALSO believe in a gold standard currency, you might be okay.

CLEBURNE61

Friday, July 23, 2010 6:47 PM

Hey guys, I'm new to this site, but not a new Browncoat. I just thought I'd try to add some explanation to the topic of inflation/sold-silver/and shortages.

Some folks had some good questions: why buy gold and silver if there won't be anything to buy with it?

First, it's important to identify what actually causes shortages of...anything. Shortages are caused by undervaluation. If, say, a watermelon is fairly scarce, it needs a price high enough to keep too many folks from buying it, and hence, causing a shortage. Shortages only occur because the object is underpriced(usually forcefully), and everyone knows it, and too many folks buy it at once.

Shortages don't normally occur in a free-market because the market quickly adjusts to the realities of supply, if there's not enough, prices go way up. Simple so far.

What causes empty shelves, or long lines and rationing at gas stations is when governments, mafias, etc(somebody with power) forces businessmen to charge a certain price: in other words, they impose price ceilings. Watermelons won't run out UNLESS a government tells farmers or retailers, "you can't sell this watermelon for over $3.00, when the market value is normally 5$."

But since inflation is coming, and rising prices will hurt alot of folks, governments are going to impose price controls for political reasons. They did it in the 1930's during the Depression, and they did it during the 70's, which caused gasoline shortages.

The point of gold and silver is...when the price controls come, it will be because no one really wants the paper anymore, because the value we've been forced to pay won't reflect reality. Gold and silver's prices always rapidly adjust to reflect real value during inflationary times. If that gallon of gas isn't for sale at paper prices, much less the imposed false one, folks will want to take something of real value for scarce goods. Scarce currency(precious metals) always fit the bill nicely.

Real, fair-valued currency will prevent shortages from happening in the first place. The dollar isn't fairly valued. Our debt to GDP ratio is 90%, and at this rate it will be 120% within 2 years. Remember what happened to Iceland, remember what just happened to Greece. We're next. Our debt problems are same as theirs.

At the end of the German depression(the 1920's) inflation got so out of control, that a 3 storey building in downtown Berlin sold for 1 oz of gold. In other words, whoever was smart enough to pay 100 marks for one oz before the inflation started, was then able to acquire prime real-estate(this purchase would've been before WWII, and thus the city was still beautiful) for just 100 marks, or roughly $20. It's the world's oldest currency, accepted everywhere, and it's a stateless currency, meaning the Feds' actions won't destroy its value. Don't let 'the Alliance' take what's yours just because they can't control their debts. Protect yourself.

"Governments exist to get in a man's way." -Mal

BYTEMITE

Friday, July 23, 2010 7:17 PM

Right, I understand supply and demand. What I don't get is demand when the product in question has no real use, or people claiming that a product is worth more than food or water when food or water has a very important and obvious use.

CLEBURNE61

Friday, July 23, 2010 7:27 PM

I see. Silver is so versatile. It is the world's best conductor of electricty. It is the world's best conductor of heat. It is used for nano-wires, for water purification systems. It is the world's most reflective metal. It is used in virtually all mirrors, and now it is used in solar mirror panels for solar energy. It is also a natural biocide: it naturally kills all forms of bacteria, even staph infections. It also is money.

Gold has less practical uses than that. Though used in dental procedures, bone treatments, alcoholic beverages, and jewelry, it really has one major use: money. Just as coal only really has one use: heat & energy. Doesn't make coal less precious or useful.

"Governments exist to get in a man's way." -Mal

KIRKULES

Friday, July 23, 2010 7:31 PM

Quote:
Originally posted by Bytemite:
Right, I understand supply and demand. What I don't get is demand when the product in question has no real use, or people claiming that a product is worth more than food or water when food or water has a very important and obvious use.

It's value is it scarcity. When paper money has no value, people will look for a new way of storing wealth. It could be anything that is scarce and that people agree to use. Historically precious metals have been the agreed on default currency and I see no reason why that will change. As in the above example, watermelons will always have value, but if a farmer has a thousand unsold watermelons they soon become worthless. Trading watermelons for gold enables the farmer to store his watermelon wealth because he knows that others will also accept gold in exchange for their produce.

BYTEMITE

Friday, July 23, 2010 7:45 PM

Being scarce is not necessarily a reason for value.

A sunset happens only once a day, and while it's really pretty, and I definitely appreciate it, I wouldn't pay to see it, or pay for a picture of it, even though that particular sunset is gone.

Again, this goes back to the supply and demand. I understand there's demand, because there isn't much supply. The question I'm asking all of you, is WHY. Why is there demand when there's no use? Why does a limited supply matter for something with no use?

Quote:
Historically precious metals have been the agreed on default currency and I see no reason why that will change.

Why?

ANTHONYT

Friday, July 23, 2010 7:52 PM

Hello,

The value of precious metals assumes a largely intact economy and government structure. Thus the assurance that the precious metal can be traded to someone, somewhere, who will value it. In a weak economy with high inflation, gold and silver may still be valuable commodities because there is still someone, somewhere who wants gold and silver and recognizes its value. The trade system is functioning well enough to transport that wealth, so whoever has the gold knows it is a type of universally exchangeable currency.

So perhaps the cry should be, "Invest in Gold, your friend during a weak economy" and not, "An economic freefall with no end in sight is on the horizon! An armageddon! Invest in gold!"

Because if things ever do actually collapse, not just weaken, then the gold is useless in the struggle for survival. No one will want an ounce or even a pound of gold for their food or water. A brick of gold won't buy you a cheeseburger in a place with no functioning government or economy, unless someone really wants a paperweight.

Barter is the solution for ruined trade systems, and that means actually having what someone needs, and trading for what you need. If there is a massive economic collapse resulting in a broken government, I think that no one in my neighborhood will be very anxious to trade for gold. Generally, everyone needs to eat, drink, clothe themselves, and protect themselves. You may add in the ability to generate light and heat, depending on where you live. Possibly muscle-transportation will become suddenly more valuable. Very basic stuff. Owning 500 candles may be worth more in such a situation than owning 500 gold sovereigns.

--Anthony

Due to the use of Naomi 3.3.2 Beta web filtering, the following people may need to private-message me if they wish to contact me: Auraptor, Kaneman, Piratenews. I apologize for the inconvenience.

WULFENSTAR

Friday, July 23, 2010 7:55 PM

Gold, silver, platinum = intrinsic value.

Paper Obamamoney = toilet paper.

My 2 cents... err.. whats the value right now of 2 cents in terms of actual value of currency? Like, does 2 cents mean a teardrop of silver?

Hard to keep up in Obamanomics... it keeps changing and going from bad to worthless.

"Being called a racist by a Liberal is a badge of honor."

KIRKULES

Friday, July 23, 2010 7:56 PM

Quote:
Originally posted by Bytemite:
Being scarce is not necessarily a reason for value.

A sunset happens only once a day, and while it's really pretty, and I definitely appreciate it, I wouldn't pay to see it, or pay for a picture of it, even though that particular sunset is gone.

Again, this goes back to the supply and demand. I understand there's demand, because there isn't much supply. The question I'm asking all of you, is WHY. Why is there demand when there's no use? Why does a limited supply matter for something with no use?

Quote:
Historically precious metals have been the agreed on default currency and I see no reason why that will change.

Why?

Gold is scarce and shinny is the only reason I can think of. The shinny part made it coveted by early peoples and in times of hardship they found that people attracted to the shinny metal would give the food in exchange for it. There's really no reason that gold is any better than any other scare commodity as a store of wealth, it just happens to be the historically agreed upon one.

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