tag:blogger.com,1999:blog-27697009.post851439293865344196..comments2024-02-29T03:21:35.007-08:00Comments on The Great Depression of 2006 : The Misallocation of ResourcesJim in San Marcoshttp://www.blogger.com/profile/09435296419912935381noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-27697009.post-26965006237629394882013-03-09T19:43:30.325-08:002013-03-09T19:43:30.325-08:00Hi Anon 7:20
I was referring to two different sit...Hi Anon 7:20<br /><br />I was referring to two different situations.<br /><br />High inflation could inflate our wages by about 20 percent in the coming years.<br /><br />I was also pointing out that if we had a currency collapse, you might not get very much for a very expensive watch. If everyone lost their savings in a currency collapse, earned income under the new system would be real funds. No one would have money to pay for the values under the old system. So a very expensive watch might sell for next to nothing if the seller was desperate.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-53696802569778740422013-03-09T19:20:05.555-08:002013-03-09T19:20:05.555-08:00Jim,
I'm somewhat confused by two statements:...Jim,<br /><br />I'm somewhat confused by two statements: salaries will average 85k in 5 years and a $10k watching will sell for $600. These outcomes seem at odds. Can you explain?<br /><br />ThanksAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-76684571774705871942013-03-09T07:24:22.489-08:002013-03-09T07:24:22.489-08:00Hi Sack
What I was talking about reminds me of th...Hi Sack<br /><br />What I was talking about reminds me of the joke about the guy trying to sell a 2 million dollar dog. A multimillionaire asks him if he would take two million dollar cats in trade?<br /><br />I think we will see these 80 million dollar painting and 200 million dollar horses drop down to a more realistic levels. In tough times, a 10 thousand dollar watch might fetch 600 dollars.<br /><br />Many fabulously wealthy people of the early 1920, lost everything in the crash and died penniless.<br /><br />People tend to associate wealth with being smart and that is just not the case. There is a lot of luck involvedJim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-69239384817762328932013-03-09T06:54:01.885-08:002013-03-09T06:54:01.885-08:00Hi Anon 3:58
Typically gold reflects a weeks wage...Hi Anon 3:58<br /><br />Typically gold reflects a weeks wages. If we were to figure an annual wage of 52K a years that would suggest a bottom side on gold of 1,000 a troy ounce.<br /><br />In normal times, holding precious metals provides no income, but with interest rates near zero, neither does cash in the bank. Plus with the low interest rates, speculation in commodities is very high because the costs of forward futures options have very little interest costs inherent in their price.<br /><br />Of course, money could be coming out of the precious metals and into the stock market.<br /><br />The one thing often overlooked about investors (when they need to raise cash) they sell the ones they made money on and hold on to the dogs hoping they come back.<br /><br />As for the future price of gold, I expect wages to average about 85K in the next 5 years, so that would imply gold is within a fair trading range. The price of gold is only reflecting how much paper is being printed.<br /><br />Gasoline is still less than 25 cents a gallon if you pay in pre 1964 silver coins.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-45403717873619584432013-03-08T12:24:53.416-08:002013-03-08T12:24:53.416-08:00Hi Anon 7:43
My back yard wouldn't work. The...Hi Anon 7:43<br /><br />My back yard wouldn't work. They used a jack hammer to put in the sprinker system. I had a hell of a time trying to bury my son's parrakeet when it died. You have to pay extra for dirt when you buy a home out here.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-25617121345419452892013-03-08T07:43:47.870-08:002013-03-08T07:43:47.870-08:00Hi Jim,
"I tend to favor precious metals, be...Hi Jim,<br /><br />"I tend to favor precious metals, because the government can't print gold and silver. And you can bury it in the back yard."<br /><br />You've conveyed this idea a few times in previous posts. Send me your street address and I'll be right over! ;) Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-8700238407137720922013-03-08T03:58:03.421-08:002013-03-08T03:58:03.421-08:00Jim,
What do you think of the current drop in gol...Jim,<br /><br />What do you think of the current drop in gold prices? Louise Yamada's technical analysis indicates that if it falls below 1529 it could be headed towards 1400 or 1250?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-79275809279205206342013-03-07T22:09:01.442-08:002013-03-07T22:09:01.442-08:00Hi, Jim
... except the rich (a) have bought the g...Hi, Jim<br /><br />... except the rich (a) have bought the government, (b) are themselves, I understand, quietly piling into precious metals and (c) moving wealth offshore/into other countries. <br /><br />Are they not survivalists, but with more resources to start with?Sackersonhttps://www.blogger.com/profile/17284329249862764601noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-64138261634110459192013-03-07T19:44:36.711-08:002013-03-07T19:44:36.711-08:00Hi Sack
Welcome back.
I think at our age, mayb...Hi Sack<br /><br />Welcome back. <br /><br />I think at our age, maybe the survival tip might be to own gold silver, platinum, a home and a car.<br /><br />The poor will lose nothing, it is the rich that will lose everything. If the currency is trashed, taxes don't go away. So if you have say several homes, you won't be able to pay the taxes on them all, and selling them, might not bring much under a new currency.<br /><br />What most people don't understand about rich people is that they might have very little spare cash, its all tied up in investments. It wouldn't take much to collapse many of these empires.<br /><br />I tend to favor precious metals, because the government can't print gold and silver. And you can bury it in the back yard. Use the buried assets to supplement your retirement under a new system when it kicks in.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-37421909751489986632013-03-07T09:55:57.379-08:002013-03-07T09:55:57.379-08:00Hi Jim - I didn't know that cattle story, inte...Hi Jim - I didn't know that cattle story, interesting analogy.<br /><br />I've paused the financial side of the blogging simply because there's no point in shouting stop when the supersized truck has its front wheels over the cliff. Perhaps we need to say a few things about survival tips, instead?Sackersonhttps://www.blogger.com/profile/17284329249862764601noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-87473479735406157742013-03-05T19:21:53.394-08:002013-03-05T19:21:53.394-08:00Hi Anon 2:05
I beg to differ a tad.The Constituti...Hi Anon 2:05<br /><br />I beg to differ a tad.The Constitution gives Congress the power to coin money and set its value. Congress delegated this power to the Federal Reserve in the 1913 Federal Reserve Act, but still maintains oversight authority. The board of governors are appointed by the President and confirmed by Congress, who pays their salary's. They are independent of government control, but responsible to the Congress for their actions.<br /><br />The Federal Reserve is the Central bank of the United States. A major portion of their job was as a clearing house for checks and the replacement of currency worn with age. With electronic banking today, check clearing is not a big item.<br /><br />A main purpose of the banks back in the 1920's was to provide currency availability to the areas of the country where money was migrating from. A bank could have deposits but no currency on hand to issue to depositors.<br /><br />I don't see how it could be labeled a private bank, it doesn't function like one in the least. I tend to accept it as a government agency for the mere fact that Congress can get rid of it if it wants.<br /><br />Congress cannot get rid of the Supreme Court, but that also is a government agency. The amount of freedom a government agency has is determined by the constitution and the laws Congress writesJim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-73920219497825986292013-03-05T14:05:16.163-08:002013-03-05T14:05:16.163-08:00Sorry Jim...the Federal Reserve is not a governmen...Sorry Jim...the Federal Reserve is not a government agency...it's a private bank.Anonymousnoreply@blogger.com