Collapsing US economy. How do we Paulers protect our assets?
Every day there is news about a coming economic collapse and possibility of a recession or depression seems to grow daily. Most people don't understand the economic plight we are facing. They don't know the $9 trillion national debt, $70 trillion in future debt obligations, city, state, and personal debt. They don't understand that the Fed's monetary policy is only exacerbating the situation. They don't understand that monetary policy in this country is the biggest issue this election. They don't have a clue about the impact of sovereign wealth funds, collateralized debt obligations, or the inflation tax. They don't understand that the government's 2% a year inflation figure is a joke that excludes food and energy. They don't understand that for the Fed to lower rates means that they are boosting liquidity by printing money out of thin air, which is devaluing the dollar by 10-15% a year. They don't understand that oil is priced in dollars and that it is dollar devaluation and not supply shortages that have caused oil to spike over $100 a barrel.
But, we do. I would bet that's why a lot of you support Dr. Paul.
That is why I think we should start some topics here on Daily Paul to share our ideas on how to protect ourselves and our money from the coming dollar meltdown.
I'm looking at the very real possibility that not enough people will hear and more importantly understand Dr. Paul's message on the economy. Personally, I don't believe that any of the other candidates do, or they don't care. Well, I do care, and I care to see all of my fellow Paul backers take steps to make sure that they can weather the downturn. We need to prepare for the possibility that Dr. Paul loses, the economy collapses, and our country or what's left enters some seriously dark times. This message is in the hopes that enough of us liberty-minded folks can do what we can to ensure that the message of liberty is heard.
So, I will start by offering my suggestions on what I know.
Get out of debt. Sell your house and rent if you can. Get out of dollars. This is harder to do, but here are a couple of ideas. You can buy gold and other precious metals from places like Midas resources, kitco, and others, or at a local coin shop. You can also buy adr's of foreign companies, or cd's of foreign currency. Peter Schiff at europac.net has a lot of good ideas here. Peter advocates stocks of conservative foreign companies that pay good dividends and suggests markets like New Zealand, Australia, Canada, etc.
I have a self-directed IRA and am looking for some good investment options. Anyone else have any suggestions?
I enjoy this thread
I look forward to this thread every day nd would hate to see it go the way of the (dollar) he he so this entry is a bump. I do have a question for those of you more seasoned money folks.
Q:With the Fed's action on Tuesday and the coming additional decrease in the rate combined with what I assume was the dumping of huge amounts of cash on the stock market Tuesday by the "Plunge Protection Team" (Fed + Treasury buying stocks), how long would you guesstimate the poor dollar has before becoming essentially worthless even with the goodwill of foreign investor banks and, what will be the next hit to the market?
me too
yes, finally just bought some silver rounds from apmex.com as people have been discussing here for days/weeks...
this is a brief little Q&A about "fiat currency", why the dollar will collapse, why gold is good.
very "layperson" explanation
http://www.dollarcollapse.com/faq/
~ ~ ~ ~ ~ ~ ~ ~
http://www.whatreallyhappened.com
Find out how "entangling alliances" interfered with the rights, and honor, of these U.S. Navy sailors from the USS Liberty www.ussliberty.org
webpence...
... well you did it... After hundreds of related posts, you triggered me to take action. I called Midas productions and for $996, I am the proud owner of three new coins.
My wife is going to kill me when she finds out but I believe you and Dr. Paul.
Now that I have these coins, and will continue to purchase, can I ask what you recommend for storage or indicator of when to trade...
me... I working on keeping them till 2010 when the Amero is coming into play... right or wrong?
Buy Silver NOW!!!
And you need to get out of the mindset of selling. You just purchased real money....so why would you trade it back for fake money!!
Read this and live by it
http://www.silverstrategies.com/publications/ThinkandSTOP.pdf
Also you whould be at www.apmex.com for the deals!
Costa Rica ... It's a valid option.
I have read ( and submitted ) posts on this topic and wish to answer a few of the questions ( fears ? ) outlined in some of them.
First off...Costa Rica is safe. Of course the capital and other BIG cities are prone to have crime ( as is Detroit where I grew up )..but in the area I live in and most others are VERY secure and friendly.
Secondly...as a realtor with 23 yrs. buying and selling property here...I can guarantee you that the "Property Rights" are absolute & the registry process is safe as is the catastro ( plot maps ). A corrupt lawyer is one of the biggest threats...if good recommendations are not followed.
Between 1994 & 2002 several laws were changed...the largest being the basic 1994 abolishing squatters rights. It is no longer possible for a person to illegally enter private property and gain rights doing so !!!
Lastly...it is one of THE most productive investments possible o the planet today. That is my "bullish" ( if I may use this term ) opinion. I'm sure if one were to google this, it would become evident. Also NO property gains tax or the like. About as close to FREE market as is possible. Demand driven and in limited supply ( unlike paper...it cannot be created...ha...ha )
We can assist folks in locating a safe and agreeable retreat as well as information on placing assets into solid investments & select properties.
Other questions about retirement or legal matters in Costa Rica ?
peaceplace@racsa.co.cr
Discover Costa Rica
Already there!!
House in Puriscal!
the 5 Gs would do no one harm but would certainly go a long way.
.... in covering ones butt. God, Gold, Grub, Guns and Good-like-minded-family/friends during this fiat-based empire collapse. Don't think for a moment though that it hasn't been a planned event to bring on the REAL empire of slavery.
In any case, it will certainly behoove one to cover their respective arse. It AIN'T gonna' be pleasent!. It already isn't for millions of unemployed and/or homeless.
Being debt-free would be nice but the first priority is pure-ass survival!
Put your money where it will do YOU and YOURS good as all else goes to hell. Do it NOW. It'll actually be some of the cheapest but best insurance you will EVER purchase!
Guns
Buy lots and lots of guns.
They never go bad and they protect themselves as long as you are there to use them.
History does not long entrust the care of freedom to the weak or the timid.
Dwight D. Eisenhower
Don't forget the ammo!
Plus it just gets more expensive every day.
Invested in precious metals--gold, silver, brass and lead.
It surprises me people even have to ask this question,
if you have been following Dr. Paul for any length of time.
1. Get out of consumption debt
2. Get out of paper or electronic assets
3. Buy and hold physical gold and silver
We could break the back of the metals manipulators who attempt to hide the effects of monetary inflation, if we all placed just 10% of our assets in hard gold and silver.
It would happen practically overnight. It would be best if it happened well "before" Ron Paul heads to the White House so blame could be placed where it belongs, on the Fed.
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Washington doesn't need more lawyers.
It needs a doctor!
Dr. Ron Paul *** RX for Freedom
Washington doesn't need more lawyers.
It needs a doctor!
Dr. Ron Paul *** RX for Freedom
Market plunge Tuesday and commodity / gold prices
You mention Peter Schiff, and I am in agreement with his read on the situation and recommendations he makes to protect wealth. The only other asset class that he mentions is commodities, with agricultural commodities in particular. On other related threads I've noted symbol DBA, which tracks a basket of agricultural commodities themselves (not commodity stocks).
As I write this with our market closed on MLK day, many of the markets in Asia are down significantly for the day. I just heard that the Dow futures are down 421 points.
http://biz.yahoo.com/ap/080121/world_markets.html
Gold and commodities are also down a bit, and the dollar is up slightly. This seems counterintuitive to some, although what I believe we're seeing is institutions and funds redeeming profitable positions in commodities and gold in order to meet redemptions. In my view this has been part of the correction in gold for the last few weeks, and will stop, and then reverse as the weakness of the dollar continues. To me, watching these prices is for gold is like standing still on the shoreline with your legs in the water up to your ankles. The tide is coming in, but the waves create and ebb and flow to prices that may occasionally make it seem otherwise. Don't be fooled by short-term market action.
I know there isn't long to go before the Fed meeting, but I wouldn't be surprised to see an aggressive rate cut announced early tomorrow, probably 75 basis points or more. If not, perhaps some other action will be put in place, such a orchestrated buying into the futures market in an attempt to alleviate selling. You can be sure that they're watching it right now.
And here's more info
http://www.marketwatch.com/news/story/stock-futures-pointing...
Puppets come and puppets go but the world's stage is getting cluttered.
And Cut Up Your Credit Cards NOW
Credit cards are issued by banks. Banks take the money we send them and use it to lobby for things like tougher bankcruptcy laws. This happened about four years ago and it is now far more difficult to get out from under that debt then ever before. Banks use the money to support the regimes that got us into this mess. Do not use their cards, do not give them your money. They will use it against you.
Get your financial house in order. Create an emergency fund, use whatever asset that feels safest to you, gold, silver, whatever, if you don't want to use paper money. The important thing is to SAVE.
STOP BUYING CRAP YOU DON"T NEED.
Get it down to the basics: food, shelter, clothing. Check out books and music from the library, read to your kids instead of turning on the TV. I have only bought new socks and underwear in the last 6 months. I am wearing what I have until it falls off my body.
Turn down the heat and put on a sweater. If you get cold, exercise.
And start exercsing anyway. It reduces stress,this can also have a huge impact on even moderate depression and will get you in shape for more walking once gasoline gets too expensive.
Move closer to your work and ride your bike or walk. Pack your lunch.
Find other ways to not spend money and to save it instead. I have turned this into a game and it's been pretty fun. In the last 6 months I have paid off two medical bills, and two small student loans. I am just now starting my emergency fund which will probably be in precious metals or some other valuable asset.
Proud member of Ron Paul's Revolution
Nobody knows what's going to happen
Yes, there are clouds on the horizon but you are fooling yourself if you think you know what is going to happen with the markets. That's why Harry Browne developed the Permanent Portfolio strategy. It suggests an equal allocation of the money that you can't afford to lose into gold, cash, stocks and bonds.
Gold = Gold Bullion coins you hold
Stocks = S&P500 Index fund(s)
Bonds = 20+ Year US Treasury Bonds
Cash = T-Bills
Rebalance the account once/year or whenever one of the categories goes to 15% or 35% of the total value of the portfolio. Historically this strategy grows at ~8%.
If you want to speculate, do it with money that you can afford to lose.
The Fiscal Wake-Up Tour with David Walker
David Walker is the Comptoller General of the Government Accountability Office. He tried for years to get the elected people in D.C. to do something about our financial situation. No one listened.
He has taken the show on the road along with people of The Brookings Institue, The Heritage Foundation and the Concord Coalition. This is a mixed partisan effort to get us out of this fiscal mess and to informa the American people of how serious our situation is.
I am going to tell everyone to attend their lectures and to find out more.
Here is their current lecture schedule:
Upcoming Fiscal Wake-Up Tour Dates & Locations*
Wednesday, February 27: Madison, WI
Wednesday, March 5: Berkeley, CA
Thursday, March 6: Fresno, CA
Tuesday, March 25: Pittsburgh, PA
Monday, April 28: St. Louis, MO
Here is the link to the Concord Coalition website:
http://www.concordcoalition.org/
-INFORMATION IS POWER-
Proud member of Ron Paul's Revolution
Gold , silver and
precious metals as investments are great in a stable economy. The qualifier here is STABLE. In a collapsed economy things switch to a trade and barter system. What can I do for you in exchange for bread and milk. What will you trade me for this extra gun. Folks if you really think there is going to be an absolute collapse start brushing up on your survival skills and figure out something you can do or exchange for what you will be needing. Gold tastes terrible.
My Dad
recommended the Foxfire series. This is a series of eleven books, originally produced as a quarterly magazine by a high school teacher and his ninth and tenth grade students in Northeast Georgia, in the Appalachian Mountains. It includes interviews with the older community residents of the area, folklore and material culture. Beside the intriguing folklore, each book contains a wealth of information about lost crafts and skills we may need in the future. A few of the subjects include: building a log cabin, chimney building, soap making, cheese making, making chairs, preserving fruit, home remedies, hunting, gardening, midwifing, wagon making, animal care, hide tanning, blacksmithing, horse trading, shoe making, water systems, a water-powered saw mill, etc
Lost arts that we should pass down because you never know when things won't be available at Walmart.
Mmmmm Gold is Yummy.
Couldn't disagree more. The theory of money and credit put forth by Von Mises correctly states that the market decides what money is and what it's value is. In fact, the basis of this theory is started/analysized from the barter system. What we have been seeing is that the market is reclaiming gold as money that's why it is going up as the dollar goes down. I think you miss the fact entirely on gold, not only will people own it not have to barter for food because they have money, they will be well off because they will have money. Gold is money, it has been in all history, the oldest writings record gold as money; it's only in the last 40 years the entire globe has wrongly agreed Gold is not money (or been brainwashed into it so the rich cold have all the gold to themselves...)
Barter at first
Yes, when the currency collapses, people turn to barter. But very quickly they create a new currency because barter is so cumbersome and inefficient. History shows that things like cigarettes and ammunition become currency very quickly. But eventually precious metal always becomes currency. Huge amounts of pre-1965 US silver coins are in private hordes. These will become the new currency shortly after a collapse. And both gold and silver will retain value against other foreign currencies that survive the collapse of the dollar.
Very good point.
Thanks
Collapse inevitable
The economy is going to collapse whether RP wins or not. The damage has already been done and can't be undone. The remaining questions are: when will the collapse come? Will it be in the form of hyperinflation or massive deflation? Will Dr. Paul have laid sufficient groundwork for rebuilding a free market with sound currency?
I am betting on hyperinflation because that is the only way the government can avoid a direct default on its obligations. Assuming that it will be hyperinflation, then paying off debt is not the way to go. If things go as I think they will, in a couple of years I will be able to pay off my mortgage with a day's wage. Assuming I still have a job! Hahahahahaha! And guess what? I don't feel sorry for the banks at all since they helped bring this on with their fractional reserve fraud.
If it is massive deflation, then dollars will retain, even grow, in value, but you have to keep the actual bills in hand because the banks will fail and the electronic deposits will evaporate.
You can't lose with hard assets like gold and silver. And if the dollar is destroyed by hyperinflation, then silver is likely to be the new currency and it will go way up in value because of the increased demand.
Hyperinflation is a good bet
because the Fed and Bush have already said that the printing pressses are ready to rock n roll in an attempt to keep the economy moving, which is part of the formula for hyperinflation. It's hard to predict anything beyond that, especially considering all of the unregulated insanity going on in the credit markets right now. A Weimar Republic scenario is not out of the question, so I'm not selling my house. If I can no longer make the mortgage payment, the bank can take possession of the house but the gold and guns will go with me.
I dunno...
Paying off your mortgage with a day's wage? Wages don't tend to inflate very fast since they're upward-sticky. Prices for everything may rise quickly, but your salary probably will not. Most of us will be inflated into poverty or unemployment. I'm going with paying down my debts to free up resources I'm gonna need in the future.
Gold or Silver
I think Gold because of portability and the Amero . My husband thinks silver because a lot of electronics rely on silver and he thinks it's way undervalued. If you were to start investing now ( or would you wait) what would you put the chunk of your $$ into. Also we think we should buy before Jan 30th when the Fed announces, which we think they will drop the rate again and metals will go up. Any feedback is appreciated.
Yes, but
Yes this is becoming a good time to buy because the price is correcting a little bit and we will have huge support at the previous all time high of $850 (almost there). But I wouldn't be putting too much money in now. Be conservative, don't go over 20% of your portfolio for sure most people say 10-15% is fine. If you already own a substantial amount of metal just hold (I'm not planning on adding to my positions I stopped buying at $780, started at $380). Silver has greater potential but Gold is more stable; I have a little of both but mostly gold. If for some reason the Fed gave up on fighting for the economy or if Ron actually won you could see silver go down due to overall deflation but gold would still fair well as a safe haven. On the other hand if the Fed keeps easing as you suggest you will most likely get better returns with silver. So it sounds to me like you should buy some of both.
I won't lie...
I'm an anarchist...the good kind. It doesn't make any sense to let my neighbors set the price of my government. Taxation is robbery. I don't mind paying for government, but why don't they make it voluntary? My association fees were voluntary, because I didn't have to live in this neighborhood, but I didn't choose to be an American. If taxes were voluntary, they could ask for donations by the Federal Department. If you didn't want to use the Department of Education, you could avoid that portion of the tax.
Anyway, if everyone in America quite their job for a month, our government would go bankrupt. Of course you should save up the money first, but then just look for a new job a couple of months out. The fact that you are saving will drive the economy into a fit, and when you lower your income from not working, you will deprive the Federal government of revenue. I only work 3-5 months every year. It takes some sacrifice, but I still have friends, family, and all I really need. I eat very healthy and get lots of exercise! Oh! and I have 5-7 months of vacation time where I just go to the library, play the guitar, read, write, and hang out at the beach here in FL.
get out of paper assets..
get out of paper assets.. right now gold and silver that you own and can TOUCH is the only thing i would be in.. jame sinclair called the gold top in 1980.. go read his web site,,, jsmineset.com. He is calling this precious metals bull ran perfectly! remember.. IF YOU CAN'T TOUCH IT... YOU DON'T OWN IT!
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
I touch my paper
Weimar deutschmarks every night.
remember your five p's
prior planning prevents piss-poor performance
- have months of food, water and fuel on hand
- have arms and ammo
- buy gold and silver
- pay off debt
- go solar, diesel, have generator on hand
- compost, grow a garden, hunt and fish
- pay down your mortgage in a timely manner
- sell tangible and real property where appropriate to
...exit plan
why pay off debt?
.
Ron Paul 2008