Great Depression of 2016

[rufus]

Right now, I am more worried about a government mandated "bank holiday." If Obama can't convince the Saudis to continue to price oil in dollars, we may have a problem. The Chinese International Payment system is being coordinated with the European SWIFT system. That will pretty much eliminate the dollar as a reserve currency.

If the Chinese back their currency with gold, the dollar is a dead duck. There are about three or four times the amount of dollars being held overseas than that in the US. When all of those dollars come back to the US, we will have a terrible inflation. Remember the Carter administration, high inflation and high unemployment. Well, this would be worse.

Keep cash on hand, and I mean fives and tens. When none of the cards work and the teller machines are tuned off, you will need cash. And not many people are going to be able to break hundred dollar bills.

 

[MrsBrooke]

I have an envelope of "egg money" somewhere in this house. Also got a few ounces of silver, because it's pretty and worth something no matter what the banks say.

It's funny, speaking of cards... How every time I go to the store with my "ancient" debit card, they ask me, "Do you have a chip?" inquiring into whether I have an old "swiper" or the new card with that gold chip in it...

"Do you have a chip?"

Next it'll be in your hand.

"Do you have a chip?"

"No."

"Call the authorities!"

MrsB

 

[rufus]

I am afraid you are correct.

 

[rufus]

I see the Saudis are taking out a ten billion dollar loan from Asian lenders. Their oil revenue is now not sufficient to maintain their welfare state.

Also, President Obama is off to Saudi Arabia, and hopefully, he can convince them to still price oil in US dollars. This will keep the petro dollar alive.

If the US dollar is no longer the major reserve currency, we can expect all of those dollars held abroad to come home in one way or another. That would produce quite an inflation.

 

[rufus]

The Chinese have launched the gold backed currency on schedule yesterday. http://www.zerohedge.com/news/2016-...n-gold-fix-exert-more-control-over-price-gold

Now, will Obama succeed in keeping the price of oil in dollars? Given a choice between a reserve currency backed by gold and a dollar backed by BS, what would you choose? I guess we will find out soon enough.

 

[MrsBrooke]

Now, will Obama succeed in keeping the price of oil in dollars? Given a choice between a reserve currency backed by gold and a dollar backed by BS, what would you choose? I guess we will find out soon enough.

(this video is safe for work and children)

The people have SPOKEN.

More bread and circuses, please!

MrsB

 

[Oliver Douglas]

I have an envelope of "egg money" somewhere in this house. Also got a few ounces of silver, because it's pretty and worth something no matter what the banks say.

It's funny, speaking of cards... How every time I go to the store with my "ancient" debit card, they ask me, "Do you have a chip?" inquiring into whether I have an old "swiper" or the new card with that gold chip in it...

"Do you have a chip?"

Next it'll be in your hand.

"Do you have a chip?"

"No."

"Call the authorities!"

MrsB

Keeping a bag or two of real silver coins handy is probably a good idea. I remember that, as a kid, Shari Lewis, the puppeteer, and her little friend Lamb Chop were telling us kids in 1965, or thereabouts, that there was a "coin" shortage (half dollars, quarters, and dimes) and that we should turn them in for paper money. Little did I realize at the time (I was 10) we were being hoodwinked, there was NO COIN shortage, just that the government wanted to take all silver coins out of circulation. In 1964, a silver quarter would buy a loaf of bread. In 2016, it still will (current value of silver in a 1964 quarter is $3.12 as of today). Franklin or Walking Liberty Half dollars, standing Liberty quarters, and Mercury dimes were always made of 90% silver, so there is no question of their silver content. Only the 1964 Kennedy half dollar was 90% silver...1965-1969, were only 40% silver.

 

[rufus]

Kitco shows silver to be $17.225 a few minutes ago. There are two types of gold and silver. Real metal that you can hold in your hand and paper that says that you have the metal on deposit. One is real, the other is BS. Metal dealers only have on hand enough to cover the demand for real metal for a day or two. However, they sell those deposit slips all day. This multiplies the amount of metal on the market.

The same is the case for banking. If everyone showed up to withdraw their funds on the same day, the banks would fail.

Something I have noticed about precious metals, is that the price rises around the world until the market opens in New York and the east coast. Then it falls. I suspect that is because the bankers and government officials have gotten to work and had their coffee. Then they go into the market selling the paper gold.

This house of cards will fall. The Chinese have introduced their gold backed currency. They will control the gold market.

When gold backing was removed from the dollar, the politicians convinced the Arabs to price oil in dollars rather than British pounds sterling. This gave value to the dollar. Unfortunately, the pound lost a lot of its value. Did Obama succeed in keeping oil priced in dollars? I guess we will find out soon.

When the US dollar is no longer needed as a reserve currency, all of those dollars held overseas will come home in one way or another. I have seen estimates that the amount held abroad are between three and five times that held in the US. That indicates to me that we will soon see a lot of inflation.

That is not good news for old retired people like me.

 

[MrsBrooke]

Like Saudi Arabia threatening to dump their treasury holdings if the US implicated them in 9/11?

Obama killed that faster than he gets from a "No questions, please" press conference to the tee box.

MrsB

 

[Oliver Douglas]

Kitco shows silver to be $17.225 a few minutes ago. There are two types of gold and silver. Real metal that you can hold in your hand and paper that says that you have the metal on deposit. One is real, the other is BS. Metal dealers only have on hand enough to cover the demand for real metal for a day or two. However, they sell those deposit slips all day. This multiplies the amount of metal on the market.

The same is the case for banking. If everyone showed up to withdraw their funds on the same day, the banks would fail.

Something I have noticed about precious metals, is that the price rises around the world until the market opens in New York and the east coast. Then it falls. I suspect that is because the bankers and government officials have gotten to work and had their coffee. Then they go into the market selling the paper gold.

This house of cards will fall. The Chinese have introduced their gold backed currency. They will control the gold market.

When gold backing was removed from the dollar, the politicians convinced the Arabs to price oil in dollars rather than British pounds sterling. This gave value to the dollar. Unfortunately, the pound lost a lot of its value. Did Obama succeed in keeping oil priced in dollars? I guess we will find out soon.

When the US dollar is no longer needed as a reserve currency, all of those dollars held overseas will come home in one way or another. I have seen estimates that the amount held abroad are between three and five times that held in the US. That indicates to me that we will soon see a lot of inflation.

That is not good news for old retired people like me.

I, too, am an old retired person. I agree with your post! Unless you have the precious metal in your hands, a piece of paper with nothing to back it up (the silver represented does not exist) can be deemed worthless at any given time. I follow the precious metal markets daily and have noticed exactly the same situation...world price jumps, NY steps in, quashes the price increases...they are, in my opinion, artificially keeping the prices down so physical gold and silver can be bought by the fat cats at reduced prices...and this is happening. I would bet my last dollar on it...which is probably worth 37 cents today....I buy from respectable bullion providers, but have noticed recently that many offerings which were readily available a year ago all say "out of stock" or are priced well above the spot prices. I have been investing for about two years, mostly silver, and haven't made a lot of money (since I don't sell them) but if the SHTF credit cards, etc. may go the way of the Dodo....and I will still be able to afford that loaf of bread.