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  #1  
Old 04/12/11, 01:01 AM
Nimrod
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Inflation proof investment?

Cabin's thread on silver leads me to ask if anyone has found an inflation proof investment? I want to invest in something that can be traded for other necessities if there is rampant inflation or the entire economy goes under. I really do feel that there will be rampent inflation due to the fed's proclivity to print money and spend it, increasing the money supply and lowering the value of each individual dollar. Also the only way out of the bind the gov is in over social security and the national debt is to have massive inflation.

Land seems to be the one thing you have to have to survive a really bad economy or TEOTWAWKI. If you can raise your own produce and critters on it and feed yourself, you can live very cheaply. I own 5 acres free and clear with an old mobile home and a garage on it. My taxes are $260 a year. The electric bill is about $40 a month. The propane stove is about $15 a month. Heat is free wood from my land and around the area. There is no water bill, sewer bill, or garbage bill. The taxes are the one thing I worry about. If the gov is going down the tubes it will raise property taxes. You may not be able to pay them if you are relying on SS or savings for your income. I would like to invest in an inflation proof item that I could sell in the future to pay the taxes. If the entire economy goes in the toilet then there will not be any property taxes to worry about.

Silver or gold could be an investment that you could sell after massive inflation and pay the inflated property taxes. I do worry that the price of silver and gold is already inflated and you could lose a big part of your investment. If the end of the world happens, then I don't think silver or gold will have much barter value. I would not trade food or other useful things for a bar of metal.

Some people have touted ammunition as a good thing to stock up on. This would work well if the gov doesn't outlaw guns and/or lead bullets. They do keep trying to outlaw these.

Chain saw blades won't spoil but they may become obsolete.

Canning jars would work but the take up so much room.

Seeds do become less viable over time,

Does anybody have nominations for items to buy and save against inflation for barter or to sell to pay taxes?

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  #2  
Old 04/12/11, 01:13 AM
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Quote:
This would work well if the gov doesn't outlaw guns and/or lead bullets. They do keep trying to outlaw these.
That would just increase their value
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  #3  
Old 04/12/11, 02:24 AM
 
Join Date: Jul 2009
Location: nebraska
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If you truly believe that massive inflation is coming, then anything you use or other people use will do the trick. Examples toilet paper, soap,laundry detergent, coffee, tea, anything. If inflation is 10% the prices on these should go up 10%. If you truly believe this inflation will happen,I do too, then anything yyou will have to by in the future would be a good investment if you have the spare money. Tobacco products or booze may be a very good thing, government likes to add taxes to these and people really like to use them.

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  #4  
Old 04/12/11, 02:48 AM
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I'm with Bruce. Anything that's not money is an inflation proof investment. Provided of course you aren't buying it brand new at full retail. Even then if inflation is massive you will end up winning out.

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  #5  
Old 04/12/11, 03:02 AM
 
Join Date: Sep 2003
Location: SW PA
Posts: 1,313

Putting the screen doors back up yesterday, I realized something. Buy more screen NOW. If SHTF and grid fails or just people can't afford a/c, they will need to have windows open, build sleeping porches, etc.
Discussing with DS, if SHTF really hits the global economy we might have to FIX what breaks, so stock up on:
tape, (especially duct tape), glue, rubber cement,
safety pins, sewing supplies,
staples, nails, screws,
cement, mortar, paint, paintbrushes,
tools, clamps,
how-to books, repair manuals for specific appliances, cars, etc
car parts, air filters, oil filters, engine oil (can this be stored how long?)
what else?

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  #6  
Old 04/12/11, 05:10 AM
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Liquor and medicines, and know how to make them from scratch.

.

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  #7  
Old 04/12/11, 07:13 AM
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anything you can't produce yourself - oil, salt, metal, building supplies, matches.

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  #8  
Old 04/12/11, 07:21 AM
 
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For ALL of it's faults, and the list is nearly endless, the federal govt has done an AMAZING job ( at the behest of the banksters ) in de-educating the people of this country as to what MONEY actual is.......

THAT was the whole reason behind FDR taking the general population off the gold standard in 1933 and LBJ doing it with silver in the 60's.

We all talk about "money", but clearly, few of us have any real understanding of the difference in "currency" and "money".....using the two terms intermixed. They are NOT the same thing, and while people don't quite get the subtle difference, they DO see the effect.

MONEY has several properties it shares with CURRENCY. They are both mediums of exchange, they are both fairly standard units of measurement, they are both divisible by smaller units.

BUT WHERE THE ROAD PARTS IS: MONEY IS A STORE OF VALUE and currency is not.

In 1912, had you stuck a 20 dollar paper note ( currency ) in a cookie jar along with a 20 dollar gold piece, both of equal purchasing power at the time, and come back today to SPEND those forms of "money", you would CLEARLY see the difference. The 20 dollar paper currency would buy 5 gallons of gasoline today. The 20 dollar gold coin would buy 375 gallons of gasoline today.

Which one was a "store of value".....one of the VERY IMPORTANT PROPERTIES of money ??

Now to the notion of "inflation".

Inflation is a currency event. It is possible to have a currency that IS true money, but unfortunately, we allowed the FED to come into existence in 1913 with a DEBT BASED currency.

With that type of system, inflation is BUILT INTO the design....there is no way at all to avoid it....the very best they can do is "control" it somewhat ( in good times ) down in the 1-2% range, but over the long haul, debt based currency must always decrease in value.

There are huge advantages to the banksters in the form of profits and huge advantages in to the govt in the form of growth of govt, so both of them are quite willing to SCREW the rest of us for those reasons.

But once you understand HOW the system works, you also understand it's ridiculous to try to beat them at their game, and simply refuse to play. Use currency for day to day living....you have no choice, for as anyone will tell you, Walmart doesn't know what to do with your gold coins....BUT DO YOUR LONG TERMS SAVINGS IN REAL MONEY....something that holds value ( not an "investment"....which is something that hopefully grows OVER the actual, real life purchasing power based money you sunk it it to start with ).

Once you understand WHAT money actually is, you'll come to the same conclusion that your ancestors came to.....that GOLD and SILVER are about the ONLY things mankind has ever found that serve as real money. Currency, unfortunately, is too easy to manipulate by greedy people, and thus, ALWAYS fails.

Get away from the notion that gold and silver are "high" right now. They are only high in terms of a crappy currency that is guaranteed to get MORE CRAPPY as time goes on.

If you're worried about paying your property tax RENT to the kings ( and you should be.....or find yourself sitting in the street when the king sends the high sheriff to put you out of "your" home ), then save some REAL MONEY that will keep pace with the rate at which the crappy currency declines so you have STORED THE VALUE OF YOU LABOR ( which is the purpose of money ) for a future expense.

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  #9  
Old 04/12/11, 09:38 AM
 
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Originally Posted by TnAndy View Post
Get away from the notion that gold and silver are "high" right now. They are only high in terms of a crappy currency that is guaranteed to get MORE CRAPPY as time goes on.
Gold is high right now, it's no notion.. vs the dollar it is at a historic high.

There is no guarantee that the dollar will not rise vs gold and we may well see gold prices fall. It has happened before.. such as after the 1980 recession... And after other recessions as well. Here is gold in 1980-1984, the last bad recession and recovery....



And while it may not be likely, it could very well happen again and drop back down to half its current value... The best time to buy gold was before this recession started, and will likely be again when this recession eases up.
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  #10  
Old 04/12/11, 10:46 AM
 
Join Date: Sep 2005
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Originally Posted by Txrider View Post
Gold is high right now, it's no notion.. vs the dollar it is at a historic high.
Nope....inflation adjusted, it would have to be 2300-2500 to equal the high of the 80's.


Quote:
Originally Posted by Txrider View Post
There is no guarantee that the dollar will not rise vs gold and we may well see gold prices fall. It has happened before.. such as after the 1980 recession.
Yeah...actually there IS a guarantee.

IF you understand inflation ( and thus the fall of the dollar and the rise of gold in relation to the paper dollar ) is a CURRENCY EVENT....meaning the printers of the currency have taken off on a drunken binge...then HERE is your guarantee that the dollar is not going to magically rise in value somehow:




Note the period of the 70's-80's. Inflation was increasing ( due to the social policies and war costs of the preceding decade ), but LOOK at what happened in late 2008....money printing went nearly off the chart !

Now a lot of that got parked in banks to bailout banks.....and they parked it in US Treasuries because that was a lot more safe than lending it ( which is what the FED wanted them to do....fire up the economy with cheap money )....but EVENTUALLY, it will ( and is ) seep into the economy, and you will see 4 buck gasoline, on it's way to 5-6-7, rising food prices and so on.

The ONLY way the FED shut that off in the 80's was to raise interest rates to 16%. It worked....it killed housing ( I was a homebuilder at the time and you couldn't give a house away ), but our economy could stand it then.

TODAY, it can't.

Today, the economy is so fragile that a minor rise of a couple % will kill it. Today, the federal debt is 14 freaking times bigger than in 1980 and mostly financed on short term notes, so a rise of rates up to 8-9% WILL TAKE ALL THE TAX MONEY WE CURRENTLY PAY JUST TO PAY THE INTEREST ON THE DEBT !

They simply are out of ammo. The only solution is to continue to print until the dollar isn't going to be taken by anyone in the world for anything.

Then, they will come up with some new currency, and the game will begin anew.

Protect yourself.....own real money.
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  #11  
Old 04/12/11, 10:56 AM
 
Join Date: Aug 2005
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Originally Posted by stickinthemud View Post
Putting the screen doors back up yesterday, I realized something. Buy more screen NOW. If SHTF and grid fails or just people can't afford a/c, they will need to have windows open, build sleeping porches, etc.
That's a good reminder.

A bit of thread drift, but pertinent:

Do you realize how many homes have windows that don't/won't open? I've seen too many new homes that have virtually NO windows!! What are those people going to do?
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  #12  
Old 04/12/11, 10:56 AM
 
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Buy hammers ?

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  #13  
Old 04/14/11, 10:49 PM
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Gold to hit $5000 per oz by 2020.

http://money.msn.com/investment-advi...irhaydari.aspx

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  #14  
Old 04/15/11, 07:46 AM
 
Join Date: Apr 2010
Location: WV
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Hand tools. Shovels, axes, hoes, saws, hammers. Many people have lots of power tools but no hand tools. If you can't afford electricity or gas how do you use the tools to grow food or cut wood. Everybody here needs to look at their power tools and make sure they can get the same job done without them. Stock up on extras, people will need them and will trade well to get them.

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  #15  
Old 04/15/11, 09:03 AM
 
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There are billions of hand tools out there. No need to stock up.

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  #16  
Old 04/15/11, 09:07 AM
 
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Originally Posted by stickinthemud View Post
Discussing with DS, if SHTF really hits the global economy we might have to FIX what breaks
Uh, am I missing something there? I thought REAL homesteaders already do this. Sure helps my bottom line to sew a pocket back on, rather than toss and replace.
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