What to do when the USD is worth nothing?

[torpor]

Congratulations.

This could well be the Worst First Post Ever.


The primary emphasis of the FR has been and will continue to be winding down the special programs created to capitalize our insolvent financial institutions.

So. (1) You Fail at monetary supply.

And, (2) You Fail at Federal Budget, Debt & Deficit.
(sure sign you are a Wing Nut)


Finally, (3) You Fail at Revisionist History.


This is either ignorance or trolling (I'm betting the latter, and that you were born in the mid 1980s as your Papa was prematurely ejactulating over Ronnie Raygun).

Because you clearly know nothing about the 1970s.
--

First off, despite the attitude, thanks for the implied welcome.
Thank you further for failing to take a position and to simply troll and be a jag. Hopefully others in this forum are better people than you are.

Now, I would say you fail at reading comprehension.
I set out to first address why some argue for necessary deflation, and some for necessary inflation. There are reasons to believe either position.

Further, I said that, despite large inflationary forces at work, we don't have hyperinflation, as you seem to argue by the topic must happen. This is because of the spending attitude of individual citizens and, as Legendkiller pointed out, a huge amount of value being wiped out. Which would be the massive force.....

You see, he can at least understand where a point goes without having his mental food be pre-chewed. But let me spoon-feed you a bit more, as you have failed to see your own need for it.

When I said that the fed walks a katana edge, it means that if they don't tone down thier own inflationary pressures to match what the economy is doing, at just the right time, then you could be right. But if they make it, then this'll all seem like nothing happened.

Your own assertion that the inflation you fear would come in the next 10-15 years almost implies understanding that these forces need winding down.....but I guess it's easier to look for a reason to be a jag.

And 70's inflation is about more than just OPEC. So please spare us your projection of your poor father's inadequacies onto others.

So now, rather than tossing around "fail" and sad, graphic imagery like some 12-year-old juiced up on sugar, why don't you try to take your thought somewhere? And let's see if you can manage some civility in the process. And perhaps you could address why the Fed is primarily concerned with winding down those programs.....

Although, to answer the original question, the traditional hedges have always been precious metals and real estate - especially undeveloped land. Although if you can find a sufficiently insulated currency, you could go there. In the modern economic model, though, one specific currency doesn't come to mind.

 

[BoberFett]

That can be a valid question. Although, you wrote it in a highly biased fashion, so it is hard to outright declare it a worthwhile question. I'll ignore the opinion part, "massive inflationary", and the rest is a worthwhile question.

Nothing biased about it. Either deflation is a problem and politicians will take drastic actions to prevent it, or it's not a problem in which case what the hell are the deflationary chicken little's squawking about?

I think that point was in 2007/2008.

And you'd be wrong. If you think that the unwinding and decrease in demand was done two years ago, then deflation wouldn't be a concern.

 

[Acanthus]

Deflation is actually what's going to happen.

This is a MUCH MUCH larger threat right now.

 

[Zebo]

Well I have 2 60 lb boxes of silver and about 13-18 Oz of gold I've bought over 20 years here and there in the safe. Maybe someone will take that for food & property taxes? I have tens of thousands of rounds of ammo... should be worth something..i doubt I'll ever shoot it all. House is almost paid but won't mean much with escalating property taxes. I have a few small working interests in gas and oil wells which should stay with whatever inflation so long as they keep producing. I don't have much stock..about 44K.... but one would think market would rise accordingly with inflation. I don't keep cash much..only to pay bills. Any savings (if there is any) goes into buying more assets which should be inflation immune.

Basically my life won't change. I'll still be ultra lazy, run, and fish 3x a week. Minnows are cheap.


Who get killed under inflation are w2 earners close to edge and government dependents who never raise rates fast enough to keep pace with inflation.

 

[Vic]

Less likely government actions, but still highly possible actions include massive spending cuts (ie if conservatives have a big win in November). We've tried that in the 1930s and Britan is doing it now. Honestly, I never tried thinking of what would have been a good investment in 1938. But try looking there.

Try military contractors.

 

[bamacre]

Try military contractors.

Fuck.

 

[dullard]

And you'd be wrong. If you think that the unwinding and decrease in demand was done two years ago, then deflation wouldn't be a concern.

I never said it was done. In fact, for years I've been saying that the decrease in demand is permanent.

You said the fake-good economy has to unwind at some point. I simply said that point was 2007/2008 when it unwound. It won't come back to the same levels. Not in a generation at least.

 

[BoberFett]

I never said it was done. In fact, for years I've been saying that the decrease in demand is permanent.

You said the fake-good economy has to unwind at some point. I simply said that point was 2007/2008 when it unwound. It won't come back to the same levels. Not in a generation at least.

I don't mean not done as in, the unwind is over and it's starting to go back up. I mean it's not done because consumer demand is going to continue to dip even further.