How to prepare for the worse...

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Originally Posted By: HerrStig
I trust "our leaders" to keep borrowing from the Chinese so watch for the inflation which will result when the Fed runs out of "equity" to continue borrowing against.

FYI- The Chinese have had their fill of buying out debt.
Currently, the Federal Reserve is by far the largest purchaser of U.S. Treasury notes and Bonds.
 
Originally Posted By: andyd
I am contemplating keeping 100 lbs of flour rice and beans on hand.


We, just last week, bought 250 Lbs. of Jasmine Rice.
 
My wife and I have always lived within our means, and building our personal wealth has always been a priority. We have zero debt, and even though we both technically "retired" from our primary careers over the last couple of days, we have multiple income streams that are over and above our standard mutual fund and 401K type investments. It would have to be absolute devastation before we began to feel it.

Neither of us are the type to sit in a rocking chair on the porch for our retirement, and we both have plans-mine is the winery and a possible venture into politics in 2013, my wife is of counsel, and will be continuing on with the boards on which she currently sits. We also have our cemetery projects that we've contracted to do next year, and there has been interest by other townships and municipalities-we'll attend a few trustee and supervisors meetings after the first of the year and gauge the possibility of putting together some proposals for 2014 (we're already booked for 2013).

There are a lot of ways to earn additional income to offset inflation, and if it gets too bad we still have other options. However, I don't believe the doom and gloom crowd when they claim that the sky is falling. For most of us it will be business as usual.
 
Yah, I found a cash and carry restaurant shop. We are still working on the 25 pound bag of I bought. What are you storing the rice in? The containers cost more than the rice.
laugh.gif
 
Originally Posted By: Rock_Hudstone
Originally Posted By: HerrStig
I trust "our leaders" to keep borrowing from the Chinese so watch for the inflation which will result when the Fed runs out of "equity" to continue borrowing against.

FYI- The Chinese have had their fill of buying out debt.
Currently, the Federal Reserve is by far the largest purchaser of U.S. Treasury notes and Bonds.


They're trying to stave off deflation and a Japanization of the US. Take a look at this chart of the 10 year treasury yield. I marked each "QE". It's pretty obvious, despite what they publicly say, that the Fed is trying to keep rates from plummeting like they did in Japan. The concern on the street and talk radio, is a fear of rates skyrocketing from a lack of demand for treasuries, but this chart would imply that the Fed is trying to reduce the demand for treasuries and force investment money into productive risk assets like stocks and high yield corporate bonds. If the fear in the market was government solvency, this chart would trend the opposite way; rates would be going up, not down.

http://www.businessinsider.com/maury-harris-on-treasury-bond-demand-2012-12

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Originally Posted By: andyd
Yah, I found a cash and carry restaurant shop. We are still working on the 25 pound bag of I bought. What are you storing the rice in? The containers cost more than the rice.
laugh.gif



Leave it in the bags they come in.
 
Everyone knows Im pretty anti-debt, but unfortunately if in the short-term it becomes a free for all, either in spending, printing money, or playing Robin Hood, then to some extent, sitting on debt is a good thing... kind of. To me this doesnt mean consumer debt, even still. It means paying down later with less valuable future dollars, or grabbing an handout that I paid for as some level of refund.

We are kind of stagnant, as we will not be taking on new specialty positions or saving a ton extra, as we are maintaining lifestyle on one salary currently. Do I intend on severely wiping out lifestyle in anticipation of something? Not really. Not now. We live a pretty calculated lifestyle, and if our purchasing power truly erodes, we will adjust our eating out, traveling to visit people and various places, etc.

We chose our living situation so that if gasoline quadrupled, it would not be a big deal. If food quadruples, we can handle it. The reports Ive seen seem to indicate that we may end up paying an extra $15k in taxes, which would be a big jump and an erosion of our free spending money, but we would just adjust in our spending patterns and continue on. But $15k out of the local economy from us and lots of others would mean pretty dire stuff, so I cant see it happening.
 
Originally Posted By: HerrStig
I trust "our leaders" to keep borrowing from the Chinese so watch for the inflation which will result when the Fed runs out of "equity" to continue borrowing against. There are some who say that inflation helps people who owe a lot because what they pay back with is worth less than what they borrowed. You sure don't want an adjustable rate mortgage in those situations.


It all depends on what the ARM is tied to. Our previous house, we had an ARM tied to t-bills. It was around 5% to start and when it adjusted it was around 7% (think 2006-07). Once the crash happened and t-bills got cheap, it adjusted to the minimum of a hair over 2%. When we moved earlier this year we got a fixed 4% as the ARM rates were not as attractive - guess they smartened up!
 
If the people that demand handouts (FSA) and amounts they want exceed the nominal capability
that the ones that work and provide for them, then I'm done.

I'll just have to retire early, stop paying income taxes and they can go drain someone else.

I am able to do it.
 
Originally Posted By: Drew99GT
Now that marijuana is legal in CO, I might keep a stash instead of cyanide pills. Just in case the apocalypse ends up being a fluke.


I guess you just plan to ride it out in a relaxed state because I don't think it is even possible to OD on pot. (Yet another reason why it should be legal - you CAN OD alcohol.) Cyanide is fine, but where would one obtain such a stash? I figured that a handful of tranquilizers, washed down with a fifth of booze would cause one to fall asleep and never wake up.

Guys! I am neither advocating or contemplating suicide because I think all this doomsday talk is hogwash. (Do people actually use that term anymore? Am I old enough to be using it?) All I am thinking is that if the world becomes a "Boy and his Dog" sort of place I might choose to not be here rather than try to kill a bunch of others before finally expiring.
 
Also, if you REALLY believe this apocalypse is inevitable you should be investing in value based items, not cash. Gold, maybe, but I think food, ammunition, energy, and medicine will be the most valuable commodities in a post-apocalyptic world.

So, stock up on canned goods, guns and ammo, generators, and non-perishable fuel.

Still convinced you wouldn't be better off dead?
 
Are some of you serious? Do you think there would be a market for Holy Bible after the apocalypse?

Some of you really scare me if you are serious!
 
Originally Posted By: Drew99GT
They're trying to stave off deflation and a Japanization of the US. Take a look at this chart of the 10 year treasury yield. I marked each "QE". It's pretty obvious, despite what they publicly say, that the Fed is trying to keep rates from plummeting like they did in Japan.

Don't want to go off topic here, but unfortunatly there in no deflation in the U.S. nor has there been since the creation of the Federal Reserve in 1913, except for a couple of years during the 1930's.

On the contrary, the Fed's gigantic money supply spike in response to the 2008 mortgage crisis was never unwound, the dollars are still in the pipeline. The Fed's quantitative easing campaigns are directly monetizing Obama's massive debts by creating Trillions of dollars out of thin air and buying up Mortgage and Treasury debt.

Without the Fed's intervention demand for Treasuries would have been much lower and thus interest rate much higher. All those dollars have to go somewhere and that equals big time inflation somewhere down the road.
 
Originally Posted By: Vikas
Are some of you serious? Do you think there would be a market for Holy Bible after the apocalypse?


Who knows? A lot of old WWII vets (my FIL included) have told me that there are no atheists in an fox hole that is under attack.
 
Originally Posted By: Kruse
Originally Posted By: Vikas
Are some of you serious? Do you think there would be a market for Holy Bible after the apocalypse?


Who knows? A lot of old WWII vets (my FIL included) have told me that there are no atheists in an fox hole that is under attack.


Maybe but there's always someone around to proselytize if you come up short.
 
Originally Posted By: sayjac
I might follow your plan, but I'm not sure how to locate a nuclear bunker equipped like that. Got any tips?

Actually, last I heard, there are a bunch of retired/abandoned silos (with all the dangerous/secret stuff removed) in the middle states. You can thank our nuclear de-proliferation and modernization efforts for that.
 
Originally Posted By: Kruse
Originally Posted By: Vikas
Are some of you serious? Do you think there would be a market for Holy Bible after the apocalypse?


Who knows? A lot of old WWII vets (my FIL included) have told me that there are no atheists in an fox hole that is under attack.

The atheists are the ones firing their weapons instead of hoping to be teleported to safety.
 
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