ok, the economy sucks, tell me what do to

[haaaylee]

i buy gold? where at? silver?

 

[Bradley in DC]

Most importantly, do everything you can to pay off debts, especially variable rate debts and high interest ones.

 

[filmmaker58]

Depends on how bad it gets. Some are predicting LEAD will be more valuable than gold, if you know what I mean.

 

[MikeStanart]

Depends on how bad it gets. Some are predicting LEAD will be more valuable than gold, if you know what I mean.

 

[eric_cartman]

if you're looking to invest your money, a ron paul supporter, Peter Schiff, understands what's going on and buys foreign investments. he's getting his clients out of dollars.

he was a big ron paul fan, and is now actually part of the official campaign as an Economic adviser to Ron Paul. Peter Schiff jokes that ron paul is the only candidate who doesn't need his advise because ron paul understands the economic problems and it's the other candidates who really need the advice.

Schiff is a really good guy, he's doing his best to get the word out and save people from getting whipped out. he'll make a lot of good conservative investments and can also help you buy gold, silver, etc. check out his site... he's got tons of stuff on there

http://www.europac.net

you can search "Peter Schiff" on youtube if you wanna see the kind of stuff he says... but he'll protect your wealth, and make you a lot of money

 

[mcgraw_wv]

My latest investment stragety is to buy stocks in companies that make gold. They basically are doing the same thing, yet their product is selling for more and more. GSS is my latest stock, I also like KRY. Discount gold miners that will see increases as inflation increases.

I like the idea of buying actual gold, but thne I have to secure it, store it, and have to go somewhere to buy it, and sell it... and then pay their middle man fees. So for me, it's a better buy to simply invest in the companies who produce gold.

 

[lucynuts]

Buy commodities

"A commodity is anything for which there is demand, but which is supplied without qualitative differentiation across a given market.[clarify]

Characteristic of commodities is that their prices are determined as a function of their market as a whole. Well-established physical commodities have actively traded spot and derivative markets. Generally, these are basic resources and agricultural products such as iron ore, crude oil, coal, ethanol, sugar, soybeans, aluminium, rice, wheat, gold and silver."

See no matter what the market does people will still need these things so the demand will always be there and as demand grows with the population price increases.

 

[CGMike]

Buy commodities

"A commodity is anything for which there is demand, but which is supplied without qualitative differentiation across a given market.[clarify]

Characteristic of commodities is that their prices are determined as a function of their market as a whole. Well-established physical commodities have actively traded spot and derivative markets. Generally, these are basic resources and agricultural products such as iron ore, crude oil, coal, ethanol, sugar, soybeans, aluminium, rice, wheat, gold and silver."

See no matter what the market does people will still need these things so the demand will always be there and as demand grows with the population price increases.

Don't forget your FCOJ (Frozen Concentrated OJ)

 

[Myerz]

GOLD, GUNS and GAS MASKS!!!

 

[Matt Davidson]

My top holdings:

DBA - an ETF of agricultural commodities futures
CCJ - mines gold AND uranium
DXD - ultrashort dow jones 30 (I use this to hedge my emerging markets exposure)
RNE - eastern europe closed end fund
EWM - malaysian ETF
AWP - global real estate investment trust


If you just want to stick with cash, I'd recommend nickels. At current prices of nickel and copper, a nickel is actually worth 6+ cents. It's hard money at a discount!

Pre-1983 pennies are also worth more than face value, but harder to find.

I also have guns of course! I recommend Ruger 10/22 for a first gun. Ammo is still quite plentiful (and cheap) for those, although you'll have to practice a lot to hit a gestapo in the right spot! The .22 LR probably wouldn't penetrate the simplest of kevlar shielding.

Good luck!

 

[jason43]

The problem is that in a global economy, all the other countries are tied into us financially. We are still considered the most "stable" economy in the world, although that opinion could change. Exchange rates might prefer foreign investments, but if the US economy REALLY tanks, then so will the rest of them. We will not be able to pay back all the money that we owe them and it will screw their economies too. Also, we will not buy their exports because inflation will cause their prices to go higher...

So really, you're just screwed. Investing in commodities is the safest bet... but all the big mutuals have already begun to do that which has been what is pushing those stock prices up. They are now pretty expensive to buy because everyone is buying them up. You won't make any signifigant gains there, but it will probably not lose you as much money if you are already invested.

My plan is to save, save, save, and wait for the crash. The stock market recovered after 1929, and if it crashes, it will recover again at some point. I will go all in (minus 10% of whatever cash I have) when the stocks crash and wait for the return. Basically I am going to wait a year and try to save massively and see how things go. We are not likely to get to hyper-inflation where the dollar is useless in that time, and it will give me a better outlook on the long term. I think that the economy is going to go one of two ways... and I am not thinking that it is going to be going for the positive. But, whenever the stock market crashes, there are people who profit, I hope to be one of them.

 

[rpfreedom08]

GOLD, GUNS and GAS MASKS!!!

Agreed mostly, I think it's a bit late to be investing in gold as the price is already crazy high and most can't afford it. I have been stocking ammo, mre's, toilet paper, first aid etc... etc... etc... I hope I never have to use any of it but I guess I'm a better boyscout then I thought. Be prepared!

 

[Libertytree]

Jason,

I'm curious, why do you think hyper-inflation is a year or more out?

You're obviously more astute in these matters than I am and I'm trying to learn how to save the little I have. I have a plan but am acting well in advance of the year mark.

Thanks.

 

[jason43]

Jason,

I'm curious, why do you think hyper-inflation is a year or more out?

You're obviously more astute in these matters than I am and I'm trying to learn how to save the little I have. I have a plan but am acting well in advance of the year mark.

Thanks.

True "hyper inflation" is not likely... the value of the dollar is going to continue to fall though because the fed is supposed to keep cutting interest rates. When they do that, the dollar falls. The problem is that they can only do that so many times before the dollar needs to be propped up... the only way to do that is to raise interest rates and when that happens, the stock market goes down the tubes, especially when they are in a period of slow/no growth...

I don't think the Fed will allow the dollar to become too inflated, no matter what people on here say... what is most likely going to happen is what happened in the 1970's which is they are going to have to raise the interest rates to save the value of the dollar, and when that happens, the stock market is going to take a hit. Hopefully for the economy, this will happen after we see some growth... otherwise, they will have stagflation. Stagnate economy and inflation. No growth and low currency value... not good.

This is a pretty good read about it.

 

[Libertytree]

Hypothetically and with my limited understanding, let me ask this.

How would the gov, U.S and international banking entities try and keep the balance and keep us out of hyper-inflation?

At what point would free market forces see through this balancing act?

Or....would those entities try and let the collapse happen slowly vs a sudden collapse?

 

[ARealConservative]

Hypothetically and with my limited understanding, let me ask this.

How would the gov, U.S and international banking entities try and keep the balance and keep us out of hyper-inflation?

At what point would free market forces see through this balancing act?

Or....would those entities try and let the collapse happen slowly vs a sudden collapse?

are we talking about the technical definition of hyper inflation where we see monthly rates of 50% or more?

I don't think any government could hide such a thing from happening. True hyper inflation is a sign that the goverment has no ability to control anything any longer. It is really ony possible with too much government intervention in the first place. It becomes a self sustaining cycle of inflation feeding deeper inflation. Then it continues to spiral out of control because even if market forces are corrected, consumer confidence would lag this correction.

 

[scooter]

I don't think we're going to see hyper-inflation mainly because lending standards are getting very tight. The Fed is making it cheaper to get money right now, but so far it hasn't created a big run for it. We're in a situation where it's not the cost of money that is the problem, but the access to it. As access to capital is harder, the money supply growth will slow.

The banks are getting pretty tight with lending right now, and with the declining Fed Funds Rate the costs of mortgages have actually gone up. So I don't believe hyper-inflation will come. But we will get some ugly inflation in the short term while the Fed keeps buying up the bad assets.

 

[Libertytree]

Thanks for your thoughts.

I wish I understood monetary matters 1/10th as much as I know historical and Constitutional matters but....so it goes. Writers and economists like Milton Friedman are fairly good at helping the lay person understand the theories but the devil is in the details.

I know there are thousands of factors at work here, some monumental, some large and others to a smaller degree that affect the labyrinth of our economy. It seems such a daunting task, though the inevitable outcomes all point to one conclusion and it's just a matter of when not if.

 

[CitizenPlain]

Hope for the best,

...

 

[AceNZ]

Although it's hard to say for sure what will happen, I think the risks of hyperinflation are much higher than most people believe. Total federal obligations are at about $55T. The government has no way to honor those obligations other than by printing money -- taxes won't come close to covering it, and the government's ability to borrow from overseas investors is likely to come to a screeching halt very soon due to the continuing debasement of the currency (real, after-inflation yields are already negative).

A compounding factor is that when foreign holders of dollars lose faith, the money they hold will come flooding back into the US economy, which will further feed price inflation, and in a way that the Fed has no control over.