If you did not trust banks, what would you do with your money?

[Baymule]

Gee, if I had so much money as to be worried where to put it, I would purchase a farm and all the equipment needed to run it. Then if I was still flush with cash, I would buy silver and gold coins. Yes, coins, because ingots and bars have to be assayed for purity and recognized coins are taken at full value. Then what to do with my hoard of valuables.........well you don't expect me to announce it in a public forum do ya?

Let's face it, our economy is in the crapper, the government is convinced they can borrow and spend their way out of the mess they got us into and all we have to do is watch the news coverage of other countries riots to know where we are headed. Trust banks? Nope, don't think so. At the first sign of trouble they will shut tighter than a clam shell. Insured? FDIC? Are you kidding? Our country is so deep in debt that we all each and everyone of us owes over $50,000. We are ready to go busted, folks. Do you have enough to eat? Do you have food stored up? Can you start a fire in your backyard when there is no electricity to cook with? How's your stock of Bic lighters? Hmmmm..........banks??? Maybe you need to put at least some of your extra money into what would help you eat and live when this country can't print enough worthless paper fiat money to prop up our failing economy. Sorry if I have hurt anyones feelings or angered anyone, but the OP asked the question and I answered.

 

[kathyinmo]

Gee, if I had so much money as to be worried where to put it, I would purchase a farm and all the equipment needed to run it. Then if I was still flush with cash, I would buy silver and gold coins. Yes, coins, because ingots and bars have to be assayed for purity and recognized coins are taken at full value. Then what to do with my hoard of valuables.........well you don't expect me to announce it in a public forum do ya?

Let's face it, our economy is in the crapper, the government is convinced they can borrow and spend their way out of the mess they got us into and all we have to do is watch the news coverage of other countries riots to know where we are headed. Trust banks? Nope, don't think so. At the first sign of trouble they will shut tighter than a clam shell. Insured? FDIC? Are you kidding? Our country is so deep in debt that we all each and everyone of us owes over $50,000. We are ready to go busted, folks. Do you have enough to eat? Do you have food stored up? Can you start a fire in your backyard when there is no electricity to cook with? How's your stock of Bic lighters? Hmmmm..........banks??? Maybe you need to put at least some of your extra money into what would help you eat and live when this country can't print enough worthless paper fiat money to prop up our failing economy. Sorry if I have hurt anyones feelings or angered anyone, but the OP asked the question and I answered.

Exactly my thoughts! ! !

 

[cupman]

the sky is not falling. hiding your money in a sock drawer isn't better than the bank.

 

[catdaddyfro]

The incompetence of banks and bankers is not a new phenominum but goes way back to the very beginnings of our countries development. The founding fathers felt the banking establishment was very dangerous and in the early 1900's bank robbers (i.e. Willie Sutton) were considered folk heros. Today the banks and bankers are probably worse then ever, but that does not mean you should not put your money in a bank since it is, by far, the safest place and as pointed out, insured. If the US goes kaput and is unable to back the FDIC insurance I am afraid that the least of your worries at that time will be your money. JD's observation regarding credit unions is a good one, providing that it is a good credit union. Like banks, there are some awfully bad credit unions. I have been a member of Navy Federal Credit Union since 1968 and they are really a great institution both as a depository of funds and as a lender for every and all occasions.

I guarontee ya!
That's about the best smartest thing I've read or heard all today ,yet, even coming from Capvin, LOL see I can play fair,

Jeff

 

[Wynette]

If I had any extra money, I'd send it to you, Kathy.

 

[rebelcowboysnb]

Where to hide your money is relative an there is no way I would tell anyone where they should. I do know that if you dont trust banks an dont use them then you should make sure that no one other than yourself knows about it. The story of David "Stringbean" Akeman is something you should google.



As for what to hide, there is no way I would keep my saving in cash right now. Buying poop is a better investment than cash. The US dollar use to be backed by gold. Most other money systems back there money by the US dollar. Now the US dollar is backed by nothing. Its like that scene in superman where he catches Ms Lane. He says "dont worry, I got ya" an she looks down an says "you got me but whos got you." The US dollar is not superman though an it is falling like a rock now.

The US claims that the inflation rate is about 2% to 3% year after year. If that was true then for every 1000 dollars you have put back you lose the equivalent of $20 to $30 dollars a year cause your $1000 can buy less stuff. But lets look at actual prices of things. Milk cost about $2.50 a gallon in 2002. Now it is around $5 a gallon. In 10 years it has doubled. That's around a 10% inflation rate. Gas was about $1.60 in 2002 an is something like $3.50 now. Thats over double in 10 years. That's about 12% inflation rate. Just of those two items, I can assume that my thousand dollars that I put back today will buy 10% to 12% less a year from now. So if you put money up you will lose 10% to 12% every year. Or for every $1000 dollars you put back for a year you might as well burn $100 of it now an spend the rest.


Do the math on what you buy. What did it cost you 10 years ago an what does it cost now? If your bank is paying you 4% a year intrust but you are losing 10% to inflation doesn't that mean you are still losing 6% every year by having your money in the bank. Even if you are invested an making 10% a year, you are risking everything to break even.

Buy things of value an store them. Like I said, poop is a better investment than cash. Buy what you can use or trade for what you can use, then store it knowing it is not losing value. If you eat rice, buy enough rice for next year now. It will probably cost you 10% more then, but dont count on your pay going up by that same 10%.. Or buy gold. X amount of gold will probably trade for the same Y amount of rice this year as it does next year. You cant say the same for the US dollar.



Then theres the question why the US government is saying the inflation rate is 2% to 3% when its way higher. I think they are trying to hide a huge crash of the US dollar that is coming, or they may be trying to hide that it is coming so we dont react an make it come faster. Anyway, the question you should be asking is not "do I trust banks?" but "do I trust the dollar?"

 

[kathyinmo]

If I had any extra money, I'd send it to you, Kathy.

YAY ! ! I need it - I'm poor! If all my (adult) kids would be less dependent on us, maybe we could save a couple dollars...... but, noooooooo!

 

[catdaddyfro]

Where to hide your money is relative an there is no way I would tell anyone where they should. I do know that if you dont trust banks an dont use them then you should make sure that no one other than yourself knows about it. The story of David "Stringbean" Akeman is something you should google.



As for what to hide, there is no way I would keep my saving in cash right now. Buying poop is a better investment than cash. The US dollar use to be backed by gold. Most other money systems back there money by the US dollar. Now the US dollar is backed by nothing. Its like that scene in superman where he catches Ms Lane. He says "dont worry, I got ya" an she looks down an says "you got me but whos got you." The US dollar is not superman though an it is falling like a rock now.

The US claims that the inflation rate is about 2% to 3% year after year. If that was true then for every 1000 dollars you have put back you lose the equivalent of $20 to $30 dollars a year cause your $1000 can buy less stuff. But lets look at actual prices of things. Milk cost about $2.50 a gallon in 2002. Now it is around $5 a gallon. In 10 years it has doubled. That's around a 10% inflation rate. Gas was about $1.60 in 2002 an is something like $3.50 now. Thats over double in 10 years. That's about 12% inflation rate. Just of those two items, I can assume that my thousand dollars that I put back today will buy 10% to 12% less a year from now. So if you put money up you will lose 10% to 12% every year. Or for every $1000 dollars you put back for a year you might as well burn $100 of it now an spend the rest.


Do the math on what you buy. What did it cost you 10 years ago an what does it cost now? If your bank is paying you 4% a year intrust but you are losing 10% to inflation doesn't that mean you are still losing 6% every year by having your money in the bank. Even if you are invested an making 10% a year, you are risking everything to break even.

Buy things of value an store them. Like I said, poop is a better investment than cash. Buy what you can use or trade for what you can use, then store it knowing it is not losing value. If you eat rice, buy enough rice for next year now. It will probably cost you 10% more then, but dont count on your pay going up by that same 10%.. Or buy gold. X amount of gold will probably trade for the same Y amount of rice this year as it does next year. You cant say the same for the US dollar.



Then theres the question why the US government is saying the inflation rate is 2% to 3% when its way higher. I think they are trying to hide a huge crash of the US dollar that is coming, or they may be trying to hide that it is coming so we dont react an make it come faster. Anyway, the question you should be asking is not "do I trust banks?" but "do I trust the dollar?"

Yes I saw a documentary on the History channel I believe it was kinda a Unsolved Mysteries type program/show of the life/death of Stringbean Akeman if ya'll find it watch it i found it oddly interesting might I say.
good point there rebel

jeff

 

[rebelcowboysnb]

Yes I saw a documentary on the History channel I believe it was kinda a Unsolved Mysteries type program/show of the life/death of Stringbean Akeman if ya'll find it watch it i found it oddly interesting might I say.
good point there rebel

jeff

If its the same one, its on netflix.

If you have netfilx, the documentary "End of the Road" is worth looking up too. Its where I got the superman thing.

 

[Capvin]

I am sorry to say this, but some of the points being made here really do not make any economic sense and the topic is just too complex to make a simplistic attempt to explain why it is a complete falacy to say that the US dollar is "backed by nothing." Most of these arguments are not economically based but are political in nature and I wish you luck in investing in six years worth of toilet paper. I personally have no problems with my cash even though it does not get a great return. Just think about it...the entire world is willing to invest in the US dollar without any real return as they consider it to be the safest haven there can be and here, some of our own citizens would like to invest in rice. If you happen to be offered a raise in your pay just ask for it in the equivalent of aluminum foil. Just remarkable to me. It is really hard for me to think of any country in the world that has as many long term advantages as the US. History should have taught you that pessimism about the US rarely pays off in the long run. Look at the major depression of the 30's; the Jimmy Carter inflation with interest rates at 23% in the late 70's; and the employment/Japan problems of the early 90's. Every one just a historical memory because the US bouces back and is then stronger then it ever was.

The deficit problem is a real problem but the mistake you are making is looking at it as an economic problem when it really has been a political problem. The problem is far from insurmountable, but our elected officials on both sides need the political will to get it fixed; and rest assured that eventually it will be fixed. As for investment in gold I think it is a great idea, except I would not want to have more then about 30% of my liquid assets invested that way. Look at the history of gold and you will see it has not been very stable. As for gold coins over bars that is just all wrong. The only people who buy coins are the ones who can not afford to buy a whole bar. The bars have a much lower price premium then the coins and the real legitimate sellers keep a legal chain of custody of the gold bar that is binding, legal and reliable and the bars do not get assayed each time they are transferred.

You guys are sounding like economic doomsday preppers.