tag:blogger.com,1999:blog-6244999628674918029.post6388436814390442651..comments2024-03-28T23:57:50.103-05:00Comments on Bayou Renaissance Man: Your money's vanishing buying powerPeterhttp://www.blogger.com/profile/10595089829300831372noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-6244999628674918029.post-28738322949582869172019-01-05T00:30:38.124-06:002019-01-05T00:30:38.124-06:00I'm looking for where I or anyone suggested ho...I'm looking for where I or anyone suggested holding nothing but cash (or even significant amounts of cash), and not seeing it. I said non-perishable goods. What goods depends on your area.<br /><br />Aesop, you sung the praises of gold, I pointed out the downside. I'm looking at family history - grandpa saw bad times ahead in the '20's, bought land and gold instead of stocks, and still ended up poor after FDR took his gold and property taxes stripped his land away. Dad worked as basic farm labor at 13, in return for room, board, and some food sent to the family.<br /><br />So, yeah, I'm a bit wary of gold. I do have a coin collection of sorts, looks remarkably like junk silver. Coincidence, obviously. tweellhttps://www.blogger.com/profile/08164718561825615886noreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-16742257036888193792019-01-04T12:43:45.340-06:002019-01-04T12:43:45.340-06:00I'm looking for where I or anyone suggested ho...I'm looking for where I or anyone suggested holding nothing but gold, and not seeing it.<br /><br />The point is that fiatbux are illusory pieces of colored and engraved toilet paper.<br /><br />Money is called silver and gold.<br /><br />Do as seems best to you, but when government adds a zero to all bills - as has also been done, and more than once - a non-zero portion of your "diversified" holdings that are in cash will be nigh worthless.<br /><br />Gold is for compact portability, an ounce being of little utility for most transactions.<br />Silver is for daily transactions.<br />After that, you have barter for and with commodities and services.<br />A man who can weld, build furniture, or fix a toilet or transmission will have plenty of business with people who have fresh eggs, fresh fish, fresh milk, and fresh produce to trade.<br />True now as ever was.<br />Aesophttps://www.blogger.com/profile/07834464741531503378noreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-13503786897809658782019-01-04T06:37:18.472-06:002019-01-04T06:37:18.472-06:00The problem with gold is that fedgov confiscated i...The problem with gold is that fedgov confiscated it once before, they will do it again. Even if you manage to hold on to your gold, you're not going to be able to trade with it, too easy for someone to turn you in. IMHO, better to get non-perishable goods you will use (or trade with) later. At least diversify your 'savings' so a robbery or law change doesn't impoverish you. tweellhttps://www.blogger.com/profile/12561029967504485306noreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-34864031238806318062019-01-03T21:58:09.264-06:002019-01-03T21:58:09.264-06:00Cut to the chase:
In 1932, the price of gold was ...Cut to the chase:<br /><br />In 1932, the price of gold was $20.67/oz., <br /><br />http://onlygold.com/Info/Historical-Gold-Prices.asp<br /><br />as it had been since 1879, and as far back as 1834. Going back from there to 1792, it was remarkably stable at $19.39/oz.<br />Prices only decoupled from reality, and crushed the dollar, when we went off the gold standard in 1933.<br />From 1792-1932, it was within 80¢ of $20/oz, forever.<br />That's why all US gold 1 oz coins still have a nominal face value of $20, even current ones: because FRNs are ersatz money, while gold is gold. And one ounce of it buys almost precisely what one ounce of it purchased in 1918, or 1818, or even in 1518.<br /><br />Ignoring the spot price unicorn, an actual 1 oz gold coin today will set you back about US$1300.<br /><br />That means compared to that $1 in 1932, you dollar today is worth about exactly 1.5¢, i.e. worth less than the cost of the price of the paper and ink to print it. It's functionally toilet paper.<br /><br />That's actual US inflation over the past 87 years.<br /><br />(For comparison, 6 sheets of Charmin UltraSoft go for about that same 1.5¢ in <i>current</i> dollars, which is the only thing keeping people from using federal reserve notes in the loo.)<br /><br />Wait until you get Argentinian/Zimbabwean/Venezuelan rates of inflation, and the Charmin will be <i>better</i> currency than fiatbux, at that point, being both more absorbent and softer on your delicate bits. And probably as scarce then as it is in Caracas now.<br />Aesophttps://www.blogger.com/profile/07834464741531503378noreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-68360266598131549062019-01-03T19:18:23.886-06:002019-01-03T19:18:23.886-06:00I foresee a day when lead will be worth more than ...I foresee a day when lead will be worth more than gold as a trading commodity. Also, since gold has a higher melting point, would we be shooting gold bullets and trading in lead?<br /><br />The price of USPS 'Forever' stamps is fifty-five cents as of this week.<br /><br />RickAnonymoushttps://www.blogger.com/profile/14495862358340777039noreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-86645602407473064432019-01-03T17:18:31.082-06:002019-01-03T17:18:31.082-06:00Sadly, many today live paycheck to paycheck with N...Sadly, many today live paycheck to paycheck with NO thought of possible problems...Old NFOhttps://www.blogger.com/profile/16404197287935017147noreply@blogger.com