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

[Fowl_Odor002]

You guys are sounding like economic doomsday preppers.

you make it sound like it's a bad thing...

the simple fact is... I've seen this movie... I know how it ends... Mexico 1980's... yo soy escuela vieja

 

[dewey]

I would hide it my kids' room...nobody can ever find anything in there.

 

[hemet dennis]

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?"

Really you think "Most other money systems back there money by the US dollar." Sorry but that's just wrong.
On inflation you seem to have only talked about things that have gone up, and some of those are regional (I payed less then $3 a gallon for milk yesterday). When you talk of inflation you have to take everything in not just some that have gone up somethings have gone down

.

 

[rebelcowboysnb]

Really you think "Most other money systems back there money by the US dollar." Sorry but that's just wrong.

Yes, I do...
Google these
"Bretton Woods system"
"Nixon Shock"
"Smithsonian Agreement"
"Bretton Woods II"

Its backed by the US dollar or its backed by nothing (with a few exceptions) ether way its backed by nothing in the end
Most nations are using a fiat currency, backed if anything by its value compared to the US dollar which is also a fiat currency...
http://dailyreckoning.com/fiat-currency/

On inflation you seem to have only talked about things that have gone up, and some of those are regional (I payed less then $3 a gallon for milk yesterday). When you talk of inflation you have to take everything in not just some that have gone up somethings have gone down/

I think I covered that with this.

Quote:
But here is others opinions.

http://www.shadowstats.com/alternate_data/inflation-charts

 

[Capvin]

Rebel I think you mis read or put to much into the reading of the Bretton Woods System. Even though that was the historical beginnings of the International Monetary Fund it will never be interpreted as it somehow created some system whereby all other currencies are backed by the US dollar. Granted that the dollar is the anchor of the global monetary system and is (for now) the world's dominant and reserve currency, but that is based soley on the fact that we have the strongest economy and a stable political system. Any economist would be very suprised to learn that the Euro, Yen, Pound or Yuan is based on the dollar. All of those currancies do quite well standing on their own and can deal monetarily on an international basis without any help from the dollar.

 

[Flfirecracker]

Remember hearing my Grandfolks talk about burying it in the chicken coop. Kind if a built in alarm system.

 

[pigeonguy]

Not tell anyone especially a stranger on the Internet it could be someone phishing for info. Don't take offense I don't think that is why you started this but it is how phishing happens.
Example
Have a neighbor you know doesn't like banks.
Find a forum you now their on.
Learn user name.
Join forum with fake address.
Ask this question.
Go get their money.

 

[cupman]

If you hide your life savings in the bushes and it goes missing.. well.. like the old saying goes, a fool and his money...

 

[rebelcowboysnb]

Rebel I think you mis read or put to much into the reading of the Bretton Woods System. Even though that was the historical beginnings of the International Monetary Fund it will never be interpreted as it somehow created some system whereby all other currencies are backed by the US dollar. Granted that the dollar is the anchor of the global monetary system and is (for now) the world's dominant and reserve currency, but that is based soley on the fact that we have the strongest economy and a stable political system. Any economist would be very suprised to learn that the Euro, Yen, Pound or Yuan is based on the dollar. All of those currancies do quite well standing on their own and can deal monetarily on an international basis without any help from the dollar.

No the bretton woods system made governments link there currency to something of value like gold. The link to the dollar was cause of the link the dollar had to gold. Nixon threw the link to gold out the window an other governments followed. The link to the dollar was still there.

The Smithsonian Agreement made the standard where dollar was pegged as the standard all other currency were rated. It failed an the floating currency system came in, still rating everything off the US dollar.

Obama used the G20 meetings to try to pin the global currency on the US dollar again.

Though the pin is not actually there anymore, the dollar is still the standard an most nations have a large portion of there economy invested in the US dollar threw US bonds. So on paper most country's should be fine if the US dollar crashes but with all the cross investments based in the value of the US dollar an the national debt at over $16T, Dont bet on us falling alone.


Anyway, the point was to get informed about money. Read, study then think for your self. Dont take anyone opinion for it as fact, including mine.

 

[hemet dennis]

No the bretton woods system made governments link there currency to something of value like gold. The link to the dollar was cause of the link the dollar had to gold. Nixon threw the link to gold out the window an other governments followed. The link to the dollar was still there.

The Smithsonian Agreement made the standard where dollar was pegged as the standard all other currency were rated. It failed an the floating currency system came in, still rating everything off the US dollar.

Obama used the G20 meetings to try to pin the global currency on the US dollar again.

Though the pin is not actually there anymore, the dollar is still the standard an most nations have a large portion of there economy invested in the US dollar threw US bonds. So on paper most country's should be fine if the US dollar crashes but with all the cross investments based in the value of the US dollar an the national debt at over $16T, Dont bet on us falling alone.


Anyway, the point was to get informed about money. Read, study then think for your self. Dont take anyone opinion for it as fact, including mine.

The system didn't make any government link there currency to something of value like gold. It did set an exchange rate for each currency. And that was revised over time. At the time the system started the British pound was over $3 by 1950 it was down to about $2.50 around 1970 it was $2 to the pound. So even under Bretton woods the dollar didn't back any currency. The dollar was just something (a base) to compare each currency to.

Americans have as much if not more invested in most countries through their bonds.

And as someone else said use the banks (as long as it's FDIC insured) because if it gets so bad that you lose your money there, it will be the least of your problems.

And don't buy gold and silver now, wait for it to come back down.