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Negative Interest

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Negative Interest
Post by DDHv   » Sat May 07, 2016 6:56 pm

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When you have to pay someone to take it off your hands, you can imagine how much your money is really worth.


Hmmm
:!:
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Re: Negative Interest
Post by HB of CJ   » Sat May 07, 2016 8:12 pm

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Yet in the good old USA the price of Gold and Silver just keeps going up. Makes one wonder how accurate proclaimed stuff is ... like the TRUE inflation rate? Humm. :)
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Re: Negative Interest
Post by Annachie   » Sun May 08, 2016 6:06 am

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Traditionally when there's political insecurity investors run to gold.

Is there political insecurity in America at the moment?

;)

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Re: Negative Interest
Post by Imaginos1892   » Sun May 08, 2016 11:31 am

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It's not the price of gold and silver that's going up, it's the value of money that's going down. "Investing" in gold will never "make" money, it will only guard against creeping devaluation.

In most places, "political instability" means a bunch of guys with guns are overthrowing the government. We don't have that here, but we do have economic uncertainty and insecurity, mostly caused by idiotic government policies.

Gold is only valuable because people believe it is - it's not really a very useful substance. You can't eat it or build things with it, and while you can wear it, it won't keep you warm or dry. If everybody would wake up from that delusion, they would find that steel and copper actually have more real value than gold.

If you want to invest in something that will hold its value in a complete social collapse, I recommend ammunition and high-end liquor. Those will always have high trading value - and you are unlikely to be cheated when trading ammunition.
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Re: Negative Interest
Post by PeterZ   » Sun May 08, 2016 11:37 am

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If gold is appreciating due worries about US political stability, that suggests severe problems for exporting nations. Regardless of how bad things get here, the prospect of economic dislocation will be much worse abroad.

Annachie wrote:Traditionally when there's political insecurity investors run to gold.

Is there political insecurity in America at the moment?

;)

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Re: Negative Interest
Post by HB of CJ   » Sun May 08, 2016 4:13 pm

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Yep ... totally agree. Gold and Silver tend to be only a value stabilizer. Kinda hard to keep warm, quench your thirst, or fill your belly with a gold or silver coin.

Some fun here. We carry in our private automobiles a 5 to 7 day wild fire forest fire evacuation bag. Duplicate bags for each small 4x4 SUV. The bags are the same. Heavy.

Some of the necessary stuff we carry are trade items. Something small and compact that could be traded off in exchange for whatever. Considerations or barter or services. :)

They include $cash$, cheap whiskey, rum, vodka and fortified cheap wine. Also tobacco, legal pot, hard candy, condoms, cards, dice, small game sets. Anything handy others may want.

We slowly drank off the booze and gave the legal tobacco and pot away. Now we need to resupply and reconfigure the evac bags for the coming wildfire season. No gold or silver.

It is costing more this year than last year to do this. The inflationary spiral may already be with us. The Government may not want this fact getting well known? Yikes!
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Re: Negative Interest
Post by Daryl   » Sun May 08, 2016 11:15 pm

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True. That's a big part of why we non US citizens are keenly interested in your affairs. You sneeze and we catch cold, you stumble and we fall. Can never work out why (as in the GFC) when the US gets into financial trouble, people buy up US $ as they are seen to be a strong currency.
I also agree that gold, silver, precious stones, are only symbolic wealth. A good crop of potatoes and the means to keep it is real basic wealth.

PeterZ wrote:If gold is appreciating due worries about US political stability, that suggests severe problems for exporting nations. Regardless of how bad things get here, the prospect of economic dislocation will be much worse abroad.

Annachie wrote:Traditionally when there's political insecurity investors run to gold.

Is there political insecurity in America at the moment?

;)

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Re: Negative Interest
Post by Annachie   » Mon May 09, 2016 3:56 am

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That's not a wildfire bag, that's a zombie apocolypse bag :)

Which reminds me that I should check out our bug out bags.
Not so much fire around here but flood.

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You are so going to die. :p ~~~~ runsforcelery
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Re: Negative Interest
Post by PeterZ   » Mon May 09, 2016 8:10 am

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What you are seeing the decreased utility of currency as a means of storing wealth. It's utility for transferring wealth remains but monetary shanagins have made it simply awful to actually save wealth using currency. Better to store wealth in bonds, stock certificates and precious metals.

Gold is preferred because its uses do not consume it or transform it into something that may not be easily transported. Jewelry's value for storing easily transportable wealth is similar. Because this is true, gold has served us well as both a currency and a means to store wealth. Land is more useful but requires immobility to harvest its value. Copper and steel require skills to transform into something useful.

DDHv wrote:
When you have to pay someone to take it off your hands, you can imagine how much your money is really worth.


Hmmm
:!:
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Re: Negative Interest
Post by HB of CJ   » Mon May 09, 2016 6:27 pm

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Being always prepared for Zombies in SW OR USA is a good idea. We did not include the repack of GUNS GUNS GUNS! :) :)

Each bug out bag ... BOB(V)WF must weight 100 pounds or over 45 kilos. Takes two people to grab and move them. Heavy.

Our 15 pound or 6.8 Kilo overnight small back packs are separate from the big Zombie shoot out BOB vehicle bags. Grab and run.

Zombies can be rather fast. It might end in a foot race. I am tripping our hated friend first. All of this is costing more to resupply.

Mega Tsunamis are another concern. Also hard to outrun. Negative Interest should reduce the costs, but it is not. Yikes! :) :)
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