Silver Stacking help

Agreed, but the bottom line was there was defaltion. Dollars increased in value, commodities declined in value. So what you are saying this time it will be different??? Now remember, hyperinflation has NEVER happend in the US, but deflation has. That is pretty gutsy move to make, your all-in bet, when history has shown the opposite might very well be true. I would be looking to cover just a few more bases than that.

 

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"...If the banking system fails 90% of the money supply disappears..."

This is completely wrong. The general definition of money supply is currency plus demand deposits in financial institutions. First of all, currency is not going to disappear. During a bank run, it may move from the bank into the hands of the depositors, at least till the cash runs out, but it is still in the economy. Demand deposits are a little more complicated. In theory, deposits are insured by the FDIC up to a certain dollar amount, currently $250,000., although there are ways around this limit. The coverage ratio is currently LESS than ten percent.

If and when the FDIC runs out of money and/or NOA, the government itself creates money out of thin air (like it has already created hundreds of billions) to fund the FDIC. Maybe. In the Cyprus "bail-in," depositors and shareholders were given no choice but to share part of the loss. If you think it can't happen here, you're wrong. Note: if you have gold or silver hidden in your basement, there's no "counterparty risk," provided you keep quiet about your holdings. In any case, the money-creation (actually a credit expansion) dumps billions if not trillions into the economy, and hyperinflation becomes all the more likely. A systemic bank failure also creates massive unemployment, but I'll save that for another time. It would be the end of our country as we know it. This is why the Federal Reserve has no choice but to keep buying Treasury securities. This strategy, of course, cannot go on forever, either. If you don't think we're hopelessly screwed in the long run, you're very naive.

The "solution" most often kicked around is for the Federal Government to simply repudiate a substantial portion of its debt, but that's another post too. Which would you rather have when the crunch comes, your net worth in incomprehensible bookkeeping entries, and paper money illustrating dead Presidents, or in precious metals? Diversify. Protect yourself. Educate yourself.

 

The demand deposits disappear in a total banking collaspe not the currency. Banks work off a 10% factional reserve.

 

Provident Metals is a good place to buy your silver.

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Really??? Not concerned about fire, and other disasters???

Also, I know for a fact you have not kept quiet about your holdings. You have stated many times that your friends don't have a clue. To even know this about your friends you have had to express your views to them and you have also stated that have tried you tried to "educate them". Now because of these exchanges you have been profiled into a certain group and this group is the type that keeps Gold/Silver in their basement. It is just not a stretch to figure this out. Not only that, when your friends talk to others, they may mention that the "guy down the street (or whatever) " is one on those horders who is preparining for doomsday. Not to hard to figure out from there, that there are goodies being stockpiled. So you never have to metnion that you have Gold/Silver, but it is a piece of cake to figure out.

There are several folks I work with that have a stacker mentality, and they never told me directly they have Gold and Silver, but they tell me about all the benefits of stacking. So, C'mom, who's house do you think goes on the short list to be robbed by someone unscrupulous.

Still think your stack is safe?

 

justafarmer, did you READ my post???? The government and its lapdog, the FDIC, will be FORCED to cover those lost demand deposits, otherwise there will be rioting in the streets. And this, precisely, will lead to hyperinflation, because it's money in the hands of consumers. Fractional reserves is what got us into this mess to begin with. A bank loans $1,000 to a customer, creating $900 of "new" money in the process, and it's so profitable for the bank that it can NEVER stop; only a lack of demand for loans creates a temporary slowdown.

Your economics was correct in the 1950s. Everything's different now. Such as, moving away from economics, why do you think DHS and even the Department of Agriculture (and the Wildlife Service, for crying out loud) bought millions and millions of rounds of ammo? You can read all the mind-numbing details in the Federal Register. No, of course, they wouldn't use that ammo on citizens.

 

As I have further indicated, repeatedly, it's all down at the bank. That's not ideal, but since I live in an apartment and not a house, it's my only choice. And I don't worry, something else I've "revealed," 2 to 4 weeks without my prescriptions and I'm gone anyway.

 

Listen, I have faith in our government leadership that they are going to figure this all out and everything will be just fine...


ROFL!!!! - ok, sorry, couldn't help myself.

Seriously though, if it gets so bad the there is an economic collapse of the dollar, stacking silver will do you no good friends. Clean water, ammunition, food rations and maybe gasoline will be the means of exchange. Who needs silver or gold when you have no food or water to drink? God, I think about the lack of food and water at grocery stores and lines at the gas stations after hurricane Sandy... imagine what would happen to commerce and transportation/shipping if the dollar were to collapse. Don't try to give me your shiny lump of metal, I want your food and water and shelter.

Meh, doomsday scenarios. Lets all hope we never see it.

 

This will forever be a favorite of mine... Holy cow, it's a top 5 of spectacular idiocy

 

No reason you can't do ALL those things, of course. I have minor credentials in this field -- 5 years as a budget analyst and 17 years as an economist, for the Feds. You are sooooooooo lucky -- lucky I wasn't in charge.

This is my final post in this thread. Good luck, have a good holiday, and hit those garage sales -- it's the end of the month -- no offers refused.