Are we fools for saving our money, which only gets eaten by inflation?

Good question. I would turn some of your cash into commodities (LIKE FOOD!), esp long term stuff.

I'm in the same boat, somewhat. I owe about $20k in loans but am now making min pmnts so I can save some dough. I figure we'll have a window to spend it. Also, I've changed my deductions so I can have extra cash in the bank for a year at least. Who's gonna pay taxes if TSHTF.

I work hard so I can have fun now, not so I can rot in a nicer nursing home.

I think if you are holding onto money that is having less and less spending power then you are holding onto a negative asset. There are those that say buy gold, silver, precious metals but is that really a safe haven? While these commodities are likely to appreciate will they do so enought to keep up with inflation. Simply put if I buy 1000.00 worth of gold today that becomes worth 2000.00 next year does it matter if fuel and staples double as well?

The world is rapidly loosing confidence in the dollar, so savings should be invested in things that will not loose value, like gold/silver, foreign currencies that are more stable, oil companies and real estate.

I'm norwegian, and atm we have the opposite problem, the crowns in norway is gaining on most other currencies, especially the dollar. I remember when a dollar costed 9NOK. And now it costs under 5NOK.

My point is that if 'everything' is inflating then the appreciation of a precious metal is meaningless. It is after all inflating in price along with everything else. Is gold and silvers rise so spectacular when you look at food and fuel prices inflating at an even faster rate.

If it costs 6000.00 to reroof your average size home today and two years from now it will cost $12,000 to do that job you would be better off doing the job now as opposed ot waiting until 'things get better'.

move your savings to british pounds or euros...
or invest in commodity... literally... buy a farm...

Some goods will increase in price more than others, and reroofing your home is a service, services will only follow the normal wage increases, and thus be less affected by inflation.

Real estate is currently dropping in price, try to be ready to invest in real estate when it hits bottom. That's the best investment opportunity now I think.

OP I agree and this has always been the question " WHAT DO I DO?" that depends on you?

Can you be a farmer type? Can you be self sufficient? I ask because it's not for everyone if there is the slightest doubt the answer is no.

I don't believe in converting into other currencies because so much is wrapped up world wide in the dollar if it goes they go. That being said they may be able to leverage out of the dollar with little impact (I doubt it).

Gold: Good to have and will always have appeal, BUT can you eat it in the short run 6 months to 2 years?

Food: Always good until you have outright confiscation!

Guns and Ammo: Same as food and a terrific bartering tool!

It's up to the individual?

Food and ammo is the best investment. Everything else lacks relavence.

Say you owe $60,000 on mortgage.

What if the Amero arrives. The new currency might buy a car for 100 Amero's versus the current $20,000 dollars a car is worth now.

If you still owe a mortgage and the mortgage is converted to the new currency payback amount. Could cost you 300 Ameros to pay back your mortgage balance.

So, it wouldn't matter if you paid off your mortgage early or not.

It will matter if you lose your job and can't pay off your mortgage. So, paying off mortgage as quickly as possible might be a great idea.
*********************************
In the immediate term, inflation of food, every day supplies and gasoline is going up. If you have money, now is the time to buy supplies.

Also, should buy heirloom seeds and gardening books. Start a garden and start a new tradition of passing seeds to future generations.

precious metals or land

Actually, yes. If your only saving the actual dollar without investing it into something of value (e.g. precious metals; ect.)

saving money is not the smartest thing to do.

not only is the dollar losing Value but you will be taxed on the interest the bank pays you as additional income.


make you money work for you, don't just let it sit around like your out of work brother in law.

So, how would you make your money work for you?

You are correct.

THIS ECONOMY PUNISHES SAVERS!

The Dollar has lost 16 Percent of it's purchasing power over the past couple of years, and it's going to get worse.

If you're in the median tax bracket and pay taxes on your savings, you've lost even more than that.

Bernanke and company are trying to hyperinflate their way out of this Depression. Of course it won't work but they think they can do the impossible. Meanwhile, as they are hyperinflating, your Dollars purchasing power, in essence, is being destroyed in proportion to the Federal Reserves effort to inflate.

In my opinion, pay off your debt. If you're not in debt, then I would suggest making repairs to your home, automobiles, etc.

The Federal Reserve utilizes 3 methods to steal from us.

1 Inflation

2 Taxation

3 Deflation

Another thing, your employer is not your friend.

Has your employer been giving you regular raises to keep up with inflation?

Do they pay 100 percent of your group health premium?

Are they forcing you to do more work for the same pay?

If you are a salaried employee, do they force you to work mandatory overtime without any kind of compensation for it?

Do what you want, you will do so anyway.

Creedence Clearwater Revival-Born On The Bayou
[link to www.youtube.com]

And So It Begins....

yes, that's why you buy gold and silver..duhh

my interest still covers the inflation (in Holland)

"Core inflation"?

:1rofl:

Can someone please explain how buying silver and gold make sense? The way I see it is that you purchase these precious metals in order to have purchasing power at a later date. If the items you are wanting to purchase at the later date appreciate/inflate at a pace faster than the precious metal does during the same time span; isn’t that in a sense a ‘real’ depreciation of investment?

Appreciation/Inflation of an asset has a direct relationship to other non owned assets. If you purchase asset (A- Gold/Silver) now and want to purchase asset (B-Food) later with asset (A) then asset (A) must appreciate/inflate at a pace faster than asset (B) in order to have made a ‘real’ gain.

Purchase PM's to protect purchasing power at a later date.

If you have PM's in hand and later find you have to cash one in to buy food, the PM (should) buy more than your fiat dollars. That is why you buy PM's.

As the dollar goes down, gold & silver value goes up.

If you invest in dollars in stock market (today was a great day in the stock market), you will see some days look great. People are just saying you should have some PM's because people at GLP are getting ready for a huge stock crash with the recession/depression they are expecting.

If you have money in stock market, and money invested in 401k. If things crash around your ears, only your cash on hand at home, heirloom seeds, garden and yes those PM's will help to tide you over.