Viewing 12 posts - 1 through 12 (of 12 total)
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  • #15502
    Malgus
    Malgus
    Survivalist
    member8

    The velocity of money – M2 – is at an all-time low. During economic growth, money speeds through the system. During depression and/or deflation, money slows down…

    Check out this article. We’re in for one wild ride.

    And if it were me, I would yank every cent you have out of the banks and sink what you can in hard assets. Anything that will retain value. Food, medicine, fuel, tools, ammo, weapons, spare parts, precious metals, booze, smokes, whatever you think will hold value…

    http://theeconomiccollapseblog.com/archives/the-velocity-of-money-in-the-u-s-falls-to-an-all-time-record-low

    The wicked flee when none pursueth..." - Proverbs 28:1

    #15523
    Profile photo of 74
    74
    Survivalist
    rnews

    I would like to know how they developed the numbers for the charts. I don’t doubt what they are saying at all, but with references it can withstand the naysayers criticisms better. This is what I believe sparks a war. When our money is no good and we can’t pay our debt, then there will be no reason to play nice with the USA anymore.

    #15531
    Profile photo of freedom
    freedom
    Survivalist
    rnews

    Well this is what we all agree on that one way or another there will be a financial collapse. To many signs point to that. What I can’t believe is how many people have no idea what is coming!

    That is the problem.

    #15532
    Profile photo of 74
    74
    Survivalist
    rnews

    Free, If everyone knew about it what would change? I’m not sure it would fix anything. People believe whatever they are told. They are like schools of fish swimming in synchronisation getting eaten by sharks.

    #15542
    Profile photo of freedom
    freedom
    Survivalist
    rnews

    1974, They are so many that are dependent on government programs and can’t think for them self’s. I believe that when there is the financial collapse they will just give up and die without a fight. It makes me sad and at the same time makes me mad. I am always talking to my son so he does not become part of the school of fish.

    #15544
    Profile photo of Roadracer
    Roadracer
    Survivalist
    member7

    This is one economic indicator that I always watch. Because it is the bellwether for economic activity. The powers that be can push all the happy talk they want through the lapdog media, but this is a piece of data that is hard to manipulate. With some many people out of the workforce, and some many under employed, there is not that much spending. Since our economy is consumer based, we are in real trouble.

    I agree with Malgus, it’s past time to look for hard assets, and to get out of debt as fast as possible. I could not believe the freedom that getting out of debt gave us. We always lived within our means, and never had to worry about making the payments, but the flexibility of no debt has been incredible.

    I only purchase things now that will still be useful, maybe even more so, after the SHTF. We also have become much more focused on quality. I read Consumers Report for anything that I need to buy. I’m amazed to see how many times the best rate is not the most expensive.

    Fasten your seat belts folks, I’m afraid it is going to be a scary ride.

    #15552
    Profile photo of freedom
    freedom
    Survivalist
    rnews

    Roadracer, I love numbers! Every time someone tells me that I am crazy that the U. S. will not collapse I point to the numbers because they do not lie. The economic numbers and the National Debt don’t lie. I send them all to http://www.usdebtclock.org/ and tell them to sit there for 2 or 3 minutes and just watch it grow.

    #15553
    Profile photo of 74
    74
    Survivalist
    rnews

    Roadracer,
    What did you do to eliminate your debt. I would have to sell the house and downsize considerably. Not to sure I would find a good location with my available cash. Renting might be an option though. Then I would need to buy a whole lot of hardware to keep the cash out of the bank.

    #15558
    Malgus
    Malgus
    Survivalist
    member8

    74,

    I don’t know if this will help or not, but my wife helped us pay our debt down. I put her in charge of the finances because, even though I know better and as smart as I am, frankly I stink at finances… effective use of your people – know their strengths and put them in charge of stuff that plays to those strengths.

    Second thing is figure out what you need, then dump everything else. We don’t have cellphone plans. I have a crappy burn phone with some minutes on it that I use in case of an emergency – that’s it.

    Third, prioritize. Figure out what you need FIRST, then work towards that. If we need something, we save until we have the cash for it, then buy it. No loans. We also use the credit card sparingly and always, without fail, pay it down to zero at the end of every month. We don’t buy useless crap. We don’t buy the latest, greatest anything.. my truck is almost as old as I am, bought with cash. Our tractor is a 1947 Ford 8N, not some multi-bazillion dollar John Deere.

    Fourth, make a plan and stick with it. We plan our financial expenditures years in advance. Example: We wanted a windmill, so we penciled it in two years ago and started setting aside the cash for it. This year, hopefully we can get one. Also, with the price of smokes as high as they are, we are finding all sorts of cash loosening up by rolling our own. I can make a carton of smokes for about 9 bucks. Less, if I buy carefully. That loosens up some serious cash over the course of a year.

    Fifth, don’t buy useless crap. We don’t buy the latest, greatest anything.. my truck is almost as old as I am, bought with cash. Our tractor is a 1947 Ford 8N, not some multi-bazillion dollar John Deere. When you do spend cash, spend it on something that will pay long-term dividends down the road. Like our orchard. We’ve been watching those trees grow for a couple years now, and they will start producing some serious product soon. Perhaps even next year. Not only can we exist on that, but we can make other product from it – applesauce, apple jack, hard cider, plum wine, trade-able dried fruits and nuts, the hulls from the walnuts will make good dye and crushed, will make good polishing media. Hopefully, we will be able to build a real, honest to goodness greenhouse. Not one of those hoop things with the plastic over them, but brick and mortar with real windows and cooling fans…

    The only real expenditure we have is the farm. But, hyperinflation will be a boon to us, I think. Our rate is laughably low, since we bought at the bottom when the housing bubble burst. Our payment will not change one cent with inflation, even though inflation skyrockets. Meaning we will be paying our bank (spit) less for the same thing, and they will have to eat it. And we make extra payments when we can afford to do so, which gives us more wiggle room…

    It also helps to be good. And lucky. But I’d rather be good and lucky than just good..

    The wicked flee when none pursueth..." - Proverbs 28:1

    #15587
    Profile photo of 74
    74
    Survivalist
    rnews

    Thanks Malgus,
    I got all that, we’re running pretty lean around here but there are always expenses from uncontained sources (like my speed tax fine). No debt to me means no mortgage my revovling credit is minimal.

    #15589
    Profile photo of freedom
    freedom
    Survivalist
    rnews

    1974, I only have credit card debt of $1,500 and the wife $500. Mortgage is paid off but no new way of doing it just many years of paying it off.

    #15609
    Profile photo of WhiteKnight
    WhiteKnight
    Survivalist
    rprepper

    I’m in 15k on school loans and 5k on my car. So it could be worse. Fortunately, I FINALLY (after 2.5 years) landed a decent paying job (about 31k) that I will use to aggressively pay those loans down. Plus, Sundays are double time! haha can you say 12 hr shifts??

    In the meantime, I have about $1000 in very hard assets, maybe $1400 in munitions etc, and extra food [separate from the group stash.] I will be paying the loans and stockpiling those assets. 401k? No thanks. I’d rather not have my retirement ‘nationalized.’ Sorry, sheeple. No easy money for you here.

    I am very hopeful that I will be able to position myself pretty well for the coming storm, especially if it doesn’t bottom out all the way (ie, they manage to buy time by nationalizing the pensions etc. Who knows?)

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