24 votes

Debt vs. inflation

I have a question for y'all.

As it is for many of us, money is tight, yet I feel like I am not ready for the economic crash. I don't have enough food stored up to last more than a couple of weeks unless I get extraordinarily creative, I don't have enough water to last us more than a month, only some camping supplies, no source of fuel or heat beyond some firewood, and so forth and so on. We do have a savings account with a significant amount in it, but it'll only last us a couple of months if we lose employment (which I doubt will happen, being in the military). Our only silver is a single American Eagle coin that my husband's father gave us for a wedding present back a few years ago.

Basically, I really want to get serious about getting ready for the economic crash, but I feel like I have to go into debt in order to do so, which I don't want to do. I'm used to living within my means, and I do not want to develop bad spending habits just in time for frugality to really mean something. But I worry that it might be easier to pay off debt than it will be to buy food when the hyperinflation hits (and we don't know when it will hit).

Anyway, I'd like to hear y'all's thoughts on the matter.




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Productive Power

I can try this here too.

See if it helps.

Power produced into oversupply.

What happens?

The price goes down.

OK, so, then what?

Nonsense.

Purchasing power goes up.

What does that mean?

Who cares.

But, if I did care, then why does purchasing power go up when the price of power goes down, because power is produced in abundance?

Glad you asked.

Purchasing power goes up when power price drops as a result of power flowing like water, because power reduces the cost of production.

So...

A few Solar Panels and an Electric Car is what - exactly?

Why don't you make sense for once?

Cost Less Transportation.

Lower fuel costs.

Lower power costs.

Nonsense, of course, in an upside down world.

Joe

Bang for your buck

Get a book of common wild edibles. That will probably be my best purchase.

.

Hear, O Israel: YHUH our God YHUH one. And thou shalt love YHUH thy God with all thine heart, and with all thy soul, and with all thy might.

No need to kill a buck. A Penny saved (in 1982) now 2+ Pennies.

240 %. A Penny saved (before 1982), is 2.4 Pennies saved (240% inflation). Poor Richard's Almanack:

    "In 1732 I first published my Almanack, under the name of Richard Saunders; it was continu’d by me about 25 Years, commonly call’d Poor Richard’s Almanack. I endeavor’d to make it both entertaining and useful, and it accordingly came to be in such Demand that I reap’d considerable Profit from it, vending annually near ten Thousand. . . I consider’d it as a proper Vehicle for conveying Instruction among the common People, who bought scarcely any other Books. I therefore filled all the little Spaces that occur’d between the Remarkable Days in the Calendar, with Proverbial Sentences, chiefly such as inculcated Industry and Frugality, as the Means of procuring Wealth and thereby securing Virtue, it being more difficult for a Man in Want to act always honestly, as (to use here one of those Proverbs) it is hard for an empty Sack to stand upright."

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Save those pennies(1982 and previous)

Thank you.

And we should consider taxes. It seems a penny saved is even better than a penny earned.

.

Hear, O Israel: YHUH our God YHUH one. And thou shalt love YHUH thy God with all thine heart, and with all thy soul, and with all thy might.

FINANCIAL PLANNING

HERE IS MY FIVE STEP SOLUTION:

1)restructure the way you value your time and form a new schedule.

2) create a schedule to use permaculture experiments to close loops on all of your costs on your property.

3) create seller accounts in online or local exchanges to market assets you have and are willing to get rid of at your leisure. This will open exchanges and relationships.

4)Funnel all of the excess capital from permaculture savings and exchange generating production to your silver accounts.

5) manage all of this on a spreadsheet and expand upon the schedule in a way that suits your uniqueness.

"Let me issue and control a nation's money and I care not who writes the laws."
- Mayer Amschel Rothschild

"give me control of my own permaculture and I care a lot about what makes law"

-Permaculture Republican

Hospitality Planning

  • Pot of coffee first thing in the morning (about 10:00 is acceptable to me)
  • Reading material for guests.
  • Torn opera tickets on coffee table if you wish to show culture.
  • Yogurt in the ice box if you prefer eating it later... Afternoon. Put some beefsteak in there too (just in case).
  • Expensive cigars that were given as gifts (Don't smoke 'em. Work 'em off as gifts).
  • Hook up the telegraph station in your den. The minor racket causes guest to compete for your attention, without being rude.
  • Victrola in the corner with a stack of records you & your guests might enjoy.
  • 5 ¢ cigars to smoke when the proper occasion arises.

Get your visitors talking up a storm. Most important thing I never really mastered... Listen.

    "He had only one vanity. He thought he could give advice better than any other person."
    - The Man that Corrupted Hadleyburg
    ---
    "By me I have many boxes of Havana cigars, of all prices, from 20 cents apiece up to $1.66 apiece; I bought none of them; they were all presents; they are an accumulation of several years. I have never smoked one of them, and never shall. I work them off on the visitor. You shall have a chance when you come."
    - letter to L. M. Powers, November 9, 1905; The New York Times, March 26, 1911

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

what all things are is words to flesh

thanks for being mark twain

"Let me issue and control a nation's money and I care not who writes the laws."
- Mayer Amschel Rothschild

"give me control of my own permaculture and I care a lot about what makes law"

-Permaculture Republican

Here is what I've been doing for the past 10 years...

Now please keep in mind that I have a decent income and I'm very responsible financially!

Since I understand that money is worth less every year due to inflation, I concluded that any accumulated debt will also be worth less (or easier to pay off) due to inflation.

Therefore, by maintaining a high FICO score, I qualify for killer credit card deals. I pay zero percent interest and always pay the minimum monthly fee. After the promotional period ends on my credit card, I do a NO FEE balance transfer to another credit card that offers zero percent for the 1st year. Rinse and repeat for 10 years and here I am.

I have accumulated over $30K in credit card debt and I've never accumulated any interest! I always service the debt by paying the minimum monthly fee. I also have a decent amount of savings if things ever went awry. Overall I will be enjoying watching my debt devalue over the next decade : )

And meanwhile, back at the Federeral Statehouse...

We use our governmental credit cards to buy whatever we can get away with...

  • Bombs for peace
  • Military to police the world ($759 Billion in budget + Infinity off budget)
  • Foreign aid to military dictators around the world (to keep the peace we provide for you)
  • Income security ($363 Billion)
  • Federal pensions ($212 Billion in budget)
  • Food stamps for 46 million
  • Social Security ($702 promised in budget)
  • Medicare & Medicaid ($750 Billion promised in budget)
  • Olympic Games
  • Foreign Nation bailouts
  • Bank bailouts ($1 Billion TARP + $16 Trillion Fed...)
  • Our credit card debt (Nation Debt per taxpayer = $142,000 :: $259 Billion in budget)
  • Miscellaneous

Above all, Uncle Sam wants you! There are 115 Million Income Tax payers. We want all your tax payments & more. There never seems to be enough.
We want the very air you breathe (CO2 credit starts today).

What? Me worry?

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Gold is the currency of

Gold is the currency of kings; silver is the currency of gentlemen; barter is the currency of peasants, and debt is the currency of slaves.

Cyril's picture

+1

Certainly one of the greatest quotes of this millennium, already :

http://mellgren.com/2009/09/29/norm-franz-on-gold-and-debt/

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

What you need to survive is KNOWLEDGE!

One of my favorite articles on this subject can be found here.

http://nogreaterjoy.org/articles/survival/

Christians should not be warmongers! http://www.lewrockwell.com/vance/vance87.html

Cyril's picture

Debt In Bed With Inflation, And Friends : An Orgy Implementation

Bedsheets branding and labelling : courtesy of Wikipedia

Step 1 - dating

http://en.wikipedia.org/wiki/Fractional-reserve_banking

Step 2 - gathering, and arousing

http://en.wikipedia.org/wiki/Federal_Reserve_Act

Step 3 - intercourse

http://en.wikipedia.org/wiki/Crony_capitalism

Step 4 - light tones, bragging, profanity

http://en.wikipedia.org/wiki/News_Corporation

...

You're welcome.

Enjoy the show.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

GROW your wealth & collect income each month!

I buy apts in emerging markets where unemployment is very low and jobs are plentiful. You can do the same. You can buy apartments on your own or join in with someone whose been doing it a while. Honestly, I cannot think of a better time to be buying apartments. Once you do it, you will be glad you did.

Ask me how. Most of all think of GROWING what you've got rather than SAVING tight with a tight fist.

Most of all realize this. This future crises is your BIG OPPORTUNITY to Leap Frog to the top. Great deals will abound. Be ready for them. Position yourself with the right people, right properties, and make the right decision to GROW your wealth. This is an EXCITING time, not a desperate time for investors willing to Capitalize (and i mean both meanings of that word 'capitalize').

Treg

Yes, please BUY this wonderful libertarian BOOK! We all must know the History of Freedom! Buy it today!

"The System of Liberty: Themes in the History of Classical Liberalism" ...by author George Smith --
Buy it Here: http://www.amazon.com/dp/05211820

OK Radar

Try to transfer to the supply room. hoard food and bullets. Remember Barter is better than cash. What better place to get ahold of shit hit the fan supplies. MRe's, bullets,night vision items and lots of warm clothes and blankets. You might hoard a tent or two as well.

2,350 % inflation since 1965. What? Me worry?


1942-1945 Nickel ** $0.05 $1.8274 3654.89%
.
1916-1945 Mercury Dime $0.10 $2.3495 2349.57%
.
1946-1964 Roosevelt Dime $0.10 $2.3495 2349.57%
.
1916-1930 Standing Liberty Quarter $0.25 $5.8739 2349.57%
.
1932-1964 Washington Quarter $0.25 $5.8739 2349.57%
.
1916-1947 Half Dollar $0.50 $11.7478 2349.57%
.
1948-1963 Franklin Half Dollar $0.50 $11.7478 2349.57%
.
1964 Kennedy Half Dollar $0.50 $11.7478 2349.57%

Coin Inflation *** 60 years. What? Me worry?

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Cyril's picture

Hehe... astute :) Me likey

Hehe... astute :)

Me likey that sort of inflation, too !

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Might not make make too much difference

but right now, a copper penny dated 1982 or prior is worth about 2.4 cents. I find that they are about 1/3 of my change and I have managed to gather a few thousand in no time. Easy hedge against inflation that costs you nothing at all. People on ebay are selling $10 face value of these pennies for $20. Just about every bank branch has a "penny man" that comes in daily and cashes FRN's in for pennies. Also $1,000.00 worth of nickels is worth about $1,080.00 right now. They won't go down in value like your paper money will and you will get a higher return then any bank is giving.

Our beloved copper Penny. All the difference money can buy!

240 %. What a difference 30 years makes! A Penny saved (before 1982), is more than double saved (240% inflation). Poor Richard's Almanack.. if there was to be a 2012 inflation adjusted edition.

    "In 1732 I first published my Almanack, under the name of Richard Saunders; it was continu’d by me about 25 Years, commonly call’d Poor Richard’s Almanack. I endeavor’d to make it both entertaining and useful, and it accordingly came to be in such Demand that I reap’d considerable Profit from it, vending annually near ten Thousand. . . I consider’d it as a proper Vehicle for conveying Instruction among the common People, who bought scarcely any other Books. I therefore filled all the little Spaces that occur’d between the Remarkable Days in the Calendar, with Proverbial Sentences, chiefly such as inculcated Industry and Frugality, as the Means of procuring Wealth and thereby securing Virtue, it being more difficult for a Man in Want to act always honestly, as (to use here one of those Proverbs) it is hard for an empty Sack to stand upright."

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Inflation (increase in money supply) already hit. & hit! & hit!

Look a few charts showing money supply. Pick several countries. It is the same story everywhere. Since 1913, the Fed has loaned the us blind. * Pause and reflect *
----
There are about 4 ¢ left in the purchasing worth of the US Federal Reserve note (which pretends to be denominated in Dollars). Less if you compare against a silver Dollar. This all happened for 1913 till now. It has taken its course. We are squabbling over the last few Pennies. Even copper left our Penny in 1982. "We are now on the zinc standard." Ron Paul, 2011.

So relax. Enjoy what you have. And less. Help those that will in turn, help you. Help folks help themselves when in need. Plan some forever.

Act according to what you can do. Trouble not in inflation. You have dealt with it all you live long days. Laugh at calls for deflation.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Camping gear

There's lots of links out there on "bug out bags" on sites such as thesurvivalistblog.net or the bug out bag list/spreadsheet at https://spreadsheets.google.com/pub?key=0Aq9V5C49dtFEdFZiXzJ... -mostly it boils down to having a good collection of camping/hiking gear. It feels alot better to think that if there were a big natural disaster or a serious economic shake-up, you could just go camping and fishing for a while until you feel like coming back. Personally, I'd want to add a Kindle and a solar charger to that and be able to catch-up on some reading and how-to's.

It already sounds like your

It already sounds like your more prepared physically and mentally than most, so thats a good thing...

I would highly suggest researching the following, some has already been mentioned"

- get a dehydrator, apple & banana chips & jerky!

- get a vacuum sealer

- start pickling & canning

- start 'sprouting', easiest & most nutritious thing in the world. you can sprout multiple things at once for a little indoor sprout garden, all you need are solo cups

- if you have space, grow a garden, compost, etc.

- I would buy some gold and silver ASAP, the price is still manageable and it could change in a single day. Someone said 2,000 is when the government is notified, its actually 5,000. Its not a crime to take out your own money, though the government makes it out to be

- stock pile cans of necessities, whole peeled tomatoes, tomato paste, corn, chilies, etc., but mostly tomatoes for me, gotta have gravy!

- dried beans, all kinds and get a lot, they last forever, nutritionally dense, and easy to prepare. Also, things like powdered hummus, polenta, quina, lentils,millet, amaranth, oats, etc.

- oatmeal & granolas

- COFFEE & Teas, these will be hot items if the shit does hit the fan

- solar powered lanterns, oils lamps, candles, etc.

- some extra gasoline, few containers of propane, firewood, basic tools

- guns, ammunition

...All in all, you have remember people are very adaptable and have lived off much, much less than this list. BUT, the notion of taking care of yourself and being as self reliant as possible can go a long way. All the stuff on this list, minus guns, gold, and silver is fairly cheap and for $700 you can feel WAY more prepared. If the time were to come, would you rather have $700 worth of federal reserve notes, or stuff to survive?

Good luck!

Their motto is "Dont Tread On Me"...

"The rich rule over the poor,

"The rich rule over the poor, and the borrower is slave to the lender."

~Proverb in the Bible

"For this is the will of God, that by doing good you should put to silence the ignorance of foolish people. Live as people who are free, not using your freedom as a cover-up for evil, but living as servants of God."
(1 Peter 2:15-16)

Be Careful

You should slowly take your cash out of the bank. Ask your bank how much you can take out without them having to report it to the government. They have started doing that if the amount is over 2000.00 or so now. None of their freaking business! If you are in a city you might want to make plans to move out to a rural area where you can grow gardens and such. Doesn't hurt to get books on foraging and learn to identify edible wild plants. Dandelion has more vitamins and trace elements than most supplements you buy at the stores. Learn skills that are useful. Learn about goats, chickens, composting etc. That doesn't take much money to do. You can learn that stuff on youtube all day or buy books for cheap at half.com

skippy

"Ask your bank how much you

"Ask your bank how much you can take out without them having to report it to the government."

Be careful asking, they are supposed to report people suspected of structuring withdrawals to avoid triggering reporting requirements.

http://www.ffiec.gov/bsa_aml_infobase/pages_manual/olm_107.htm

Structuring transactions to evade BSA reporting and certain recordkeeping requirements can result in civil and criminal penalties under the BSA. Under the BSA (31 USC 5324), no person shall, for the purpose of evading the CTR or a geographic targeting order reporting requirement, or certain BSA recordkeeping requirements:

- Cause or attempt to cause a bank to fail to file a CTR or a report required under a geographic targeting order or to maintain a record required under BSA regulations.
- Cause or attempt to cause a bank to file a CTR or report required under a geographic targeting order, or to maintain a BSA record that contain a material omission or misstatement of fact.
- Structure, as defined above, or attempt to structure or assist in structuring, any transaction with one or more banks.

The definition of structuring, as set forth in 31 CFR 103.11(gg) (which was implemented before a USA PATRIOT Act provision extended the prohibition on structuring to geographic targeting orders and BSA recordkeeping requirements), states, "a person structures a transaction if that person, acting alone, or in conjunction with, or on behalf of, other persons, conducts or attempts to conduct one or more transactions in currency in any amount, at one or more financial institutions, on one or more days, in any manner, for the purpose of evading the [CTR filing requirements]." "In any manner" includes, but is not limited to, breaking down a single currency sum exceeding $10,000 into smaller amounts that may be conducted as a series of transactions at or less than $10,000. The transactions need not exceed the $10,000 CTR filing threshold at any one bank on any single day in order to constitute structuring.

So Now it's Ilegal

To not want the government knowing how much money you take out of the bank? So now it's illegal to take your money out in small amounts? Really? I also heard that if you buy something that costs over 5000.00 they report that too. Where does it stop? I am glad I don't have a bank account! I also don't have credit cards or debit cards and don't want them. Now they are trying to make it illegal to use cash. What's next? Will we be required to report every time we go to the bathroom? Wouldn't surprise me.

skippy

The Bathroom...

"The bathroom is the last bastion of American freedom."

-Eric Cartman

South Park has some GREAT underlying libertarian themes.
http://www.southparkstudios.com/full-episodes/s16e01-reverse...

SPC Haas
82nd Airborne Infantry Division
2/504 P.I.R.

Ron E(a)RNEST Paul
truth is his middle name!

Yet again

this shows how Bitcoin is a friend to liberty.

You are effectively your OWN bank. Nobody can stop you sending ANY AMOUNT you want anywhere in the world, and not telling anyone or asking anybody's permission. And if precautions are taken you can use bitcoins completely anonymously.

If you downvote this

why don't you say WHY?

I upvoted. Competing

I upvoted. Competing currencies is the only way to monetary freedom. Bitcoin is a huge part of this.

Personally, I have most of my savings (80%) in silver.

Simple Facts and Plain Arguments
A common sense take on politics and current events.

http://simplefactsplainarguments.blogspot.com