Hyperinflation a reality?

Something very scary was just brought to my attention...
So the FED has been given permission to print more money for this QE3. But I heard that there is no cap, they can print as much as they want. What then, pray tell, happens to the value of the dollar? What happens when we become like Post-WWII Hungary (or worse, post WWI Germany)? What happens when the exchange rate (right now .76Euro = $1USD) and inflation goes out of control for us? When $1 won't even get you a Euro penny? I'm just curious what happens when a bottle of water- due to inflation- becomes as expensive as a bottle of high class champagne ($100.00)? Are we nearing this now?

Some pretty solid examples with source information:

http://en.wikipedia.org/wiki/Hyperinflation

Buy commodities my friend, buy commodities.

Ronin when I graduated high school 15 years ago a ford Ranger base model was $5995.
Last year when i checked, they were $15000. (it appears they're not made anymore) Yet all I hear reports of are inflation being at all time lows. You tell me.

USD/EUR isn't accurate to the value of the dollar in my opinion because Europe is in the shitter too. Look at USD compared to a more stable currency.

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Originally Posted by 00tec

USD/EUR isn't accurate to the value of the dollar in my opinion because Europe is in the shitter too. Look at USD compared to a more stable currency.

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like gold or silver ;)

Yep, Ronin, you've got it my friend. Be afraid. Be VERY afraid. It's the primary reason I've started prepping for serious. It's what I think will prove to be the origin of the great collapse. If Obama wins again, we'll never save ourselves. He'll drive even more people into government dependency, and they'll then have the numbers to never vote the crumb throwers out of power. It might be too late already, but I'm not throwing in the towel on hope until after the election.

I've done some of what HoneyBadger suggested.

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Originally Posted by 00tec

USD/EUR isn't accurate to the value of the dollar in my opinion because Europe is in the shitter too. Look at USD compared to a more stable currency.

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Australia used to be a good gauge, but of late they've started to go the way of socialism spending too.

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Originally Posted by HoneyBadger

Buy commodities my friend, buy commodities.

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Yes but just keep in mind, if you can't touch it, you don't own it.

In other words, buy commodities that you can store at your house (having a bunch of pork belly futures certificates means you have some pieces of paper with the word "pork bellies" on it, not actual bacon).

Obama did deliver on the hope and change promise. The change is putting us on the eve of destruction, and the hope is leaving us hoping we can find a way to hail mary save ourselves.

Ah, but that's OK, because he's such a nice and likable guy.

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Originally Posted by Zundfolge

Yes but just keep in mind, if you can't touch it, you don't own it.

In other words, buy commodities that you can store at your house (having a bunch of pork belly futures certificates means you have some pieces of paper with the word "pork bellies" on it, not actual bacon).

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+1000. I can't stress this enough... Buying gold certificates and keeping the gold stored in some warehouse is as good as printing your own certificates saying that you own all the gold in Ft Knox... Worthless.

Read the book Patriots: Surviving the Coming Collapse if you haven't. It reads like a how-to manual and gets a bit dry sometimes if it's something you already know, but there is a lot of great info in there. The first chapter explains the concept of hyperinflation as the premise for the story.

I'm already combing through my family's assets and making sure they keep them close- gold, silver, anything that's unique. I just read that the price of gold 10 years ago was $330/ounce, now it's somewhere around $1700/ounce. What!? And they speculate that it could be $2400/ounce by December 2014. I also recently read that 9% of Americans have liquidated their bank accounts (IE: Closed them and are now holding on to their cash). We're closing the gap between us and the edge of the cliff... I am afraid. Hence why I'm buying a house soon. With the value of the dollar going to drop, I'd rather pay a fixed house payment than be forced to pay a rising rent cost.

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Originally Posted by Ronin13

I'm already combing through my family's assets and making sure they keep them close- gold, silver, anything that's unique. I just read that the price of gold 10 years ago was $330/ounce, now it's somewhere around $1700/ounce. What!? And they speculate that it could be $2400/ounce by December 2014. I also recently read that 9% of Americans have liquidated their bank accounts (IE: Closed them and are now holding on to their cash). We're closing the gap between us and the edge of the cliff... I am afraid. Hence why I'm buying a house soon. With the value of the dollar going to drop, I'd rather pay a fixed house payment than be forced to pay a rising rent cost.

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Smart!

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Originally Posted by Ronin13

I'm already combing through my family's assets and making sure they keep them close- gold, silver, anything that's unique. I just read that the price of gold 10 years ago was $330/ounce, now it's somewhere around $1700/ounce. What!? And they speculate that it could be $2400/ounce by December 2014. I also recently read that 9% of Americans have liquidated their bank accounts (IE: Closed them and are now holding on to their cash). We're closing the gap between us and the edge of the cliff... I am afraid. Hence why I'm buying a house soon. With the value of the dollar going to drop, I'd rather pay a fixed house payment than be forced to pay a rising rent cost.

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They have been predicting that gold will hit $2200-2400 and ounce for the last couple of years, but it hasnt. It did hit about $1800 an ounce (would have to check) but has since dropped slightly in value.

Silver and copper, actually, are the commodities I tend to pay more attention to. Copper is made into all sorts of things and will always have value. Silver is the same. I have a friend in the metals business and he is currently buying stainless steel in serious amounts for the nickel- again a metal that is used in many many things and that is gaining in value.
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Originally Posted by dwalker460

They have been predicting that gold will hit $2200-2400 and ounce for the last couple of years, but it hasnt. It did hit about $1800 an ounce (would have to check) but has since dropped slightly in value.

Silver and copper, actually, are the commodities I tend to pay more attention to. Copper is made into all sorts of things and will always have value. Silver is the same. I have a friend in the metals business and he is currently buying stainless steel in serious amounts for the nickel- again a metal that is used in many many things and that is gaining in value.
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http://www.coinflation.com/nickel2.gif1946-2012 Nickel$0.05
$0.0529537 105.90%

www.coinflation.com

And if deflation kicks in its still worth a nickel!

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Originally Posted by Goodburbon

like gold or silver ;)

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Exactly

Store food. You will always need to eat. Look at food prices alone in the last year.

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Originally Posted by Rust_shackleford

Store food. You will always need to eat. Look at food prices alone in the last year.

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Oh my head! It pains me to look at that stuff- I wish we could predict better, because MREs last 5 years, I'd like to have a good stock of them due to their compact size, high caloric value, and ease of use.

The more money they print (currently 40 billion a month with no end date) will indeed raise the price of gold. We have to stop this insanity, and bite the bullet and suffer through whatever is going to happen with the economy and stop living in the artificial world this jagoff has managed to get us into. Vote in November and make it count.

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Originally Posted by Ronin13

We're closing the gap between us and the edge of the cliff... I am afraid. Hence why I'm buying a house soon. With the value of the dollar going to drop, I'd rather pay a fixed house payment than be forced to pay a rising rent cost.

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This is exactly our plan too. And if the world as we know it goes to hell in a handbasket, we'll be no worse off than 70% of Americans with massive debt, but at least we'll have a place to live... (Also a place to bug in...)

personally, here is my opinion. but food. but a set of it at costco or online, like of thrive, for a year or two worth. you can do it when on sale for $800 for the year. yes its $800 but you can eat it at anytime if need be and it lasts 25 years. if you have more time or energy, get set up with a distributor in the area and hand pick what you want. itll cost a bit more but be more user friendly and fit your tastes. second, consider storing some water if you have the space. you can buy those massive tanks for like $100 at all kinds of places. never bad to have some on hand. stock up on some ammo, probably 1000 rounds of most used weapons isn't a bad idea. lastly, stock up on some plywood or 2x4's that are fairly short. if things get that bad, those could come in serious handy.

that will cover you for survivability if things actually get the worst. after you are set there, id start putting money in things that make sense to trade if the market collapses, but also is low risk in the sense that if things turn around you aren't out a bunch of money. again, if on sale, stock up on food. its easy to sell to others like us if the market rebounds, food costs always rise, and its extremely great if you need to trade it down the road. id also get ammo. it never drops value, will likely rise even in a normal market and is very useful. Gold and silver, lean more on silver than gold in my opinion. don't tie up a ton of money in it but have some. again, very unlikely to bottom out, could very well go up, and is easy to trade in bad situations. finally, when talking about considerable amount of money, if you don't own property or a home, do so soon. rates are low, get them fixed. if inflation hits hard and you are lucky enough to keep your job and it pays you accordingly, your loan could be very cheap. rates aren't going to get any lower. best thing is that if needed you can sell it. ideal situation is to own enough that you can subdivide it down the road if necessary.

sadly i am looking at land now but can't build for another two years. i fear itll be too late by then but i hope i am wrong. i am literally in the worst place ever for bad situations and have no storage capacity.

as a side note, my parents, who are about as down to earth and laid back as anyone, are even trying to figure out who to get rid of their 401k cash and put it into goods. they are afraid itll be worthless soon. never thought id hear that from them.

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Originally Posted by tmckay2

personally, here is my opinion. but food. but a set of it at costco or online, like of thrive, for a year or two worth. you can do it when on sale for $800 for the year.

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Come again?

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Originally Posted by FastMan

Come again?

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its the wonders of an iphone that auto corrects and is impossible to type on.

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Originally Posted by Rust_shackleford

Store food. You will always need to eat. Look at food prices alone in the last year.

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It always amazes me how many people think about storing a year's worth of food but don't think about how they'll get potable water. If you're really talking about an apocalyptic scenario, wouldn't you like to have a ceramic water filter and small supply of replacement cartridges? Perhaps your BOL has its own well -- if not, do you think the municipal water supply will magically continue to operate?

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Originally Posted by Aloha_Shooter

It always amazes me how many people think about storing a year's worth of food but don't think about how they'll get potable water. If you're really talking about an apocalyptic scenario, wouldn't you like to have a ceramic water filter and small supply of replacement cartridges? Perhaps your BOL has its own well -- if not, do you think the municipal water supply will magically continue to operate?

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Good point.

If nothing else keep a few extra bottles of chlorine bleach handy. Add about 1/8th teaspoon per gallon of water ... if the bleach has been stored more than a year, double that (it loses effectiveness over time). Let it sit for at least an hour before drinking (takes about 45 minutes to kill any Giardia).

Bleach is good for a short term solution. But good filtration and storage is a necessity for long term.

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Originally Posted by Aloha_Shooter

It always amazes me how many people think about storing a year's worth of food but don't think about how they'll get potable water. If you're really talking about an apocalyptic scenario, wouldn't you like to have a ceramic water filter and small supply of replacement cartridges? Perhaps your BOL has its own well -- if not, do you think the municipal water supply will magically continue to operate?

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so i am looking to build a home soon and the land i want is outside of town a ways, the land my wife wants is in town. both are about 1.5 acres. any idea, if city water and sewer is there at the line, if i have any options for getting water NOT dependent on the city? i don't think they allow wells and septic inside city water and sewer perimeters do they?

If gold hits $2400 an ounce you can bet we will see old FDR's policy of no gold holding. They will make it illegal to own gold, and confiscate anything they find. Be careful and buy more ammo.

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Originally Posted by flan7211

If gold hits $2400 an ounce you can bet we will see old FDR's policy of no gold holding. They will make it illegal to own gold, and confiscate anything they find. Be careful and buy more ammo.

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I hope to God you're wrong.

If things continue on this path (which I think they will until it blows up), none of the conventional 'preps' will do much good absent effective security arrangements. When the EBT's don't work, the store shelves are empty and the transfer-payment checks don't cash, the cities and some 'rural' areas will burn (literally). The short-term survivors of that catastrophe will invade and scour anything within one gas-tank full (about 300 miles, give or take) of their initial location. Draw a 300 mile circle around every city with a population of more than 50,000 to find relatively 'safe' areas - surprise, there really aren't any. Good luck...

If the economy severely fails from printing all that money and your retirement plan is all in stocks & bonds dependent, you will be left helpless. Got any gold or silver?

http://www.youtube.com/watch?feature...&v=hZl902JEJZc

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Originally Posted by BushMasterBoy

If the economy severely fails from printing all that money and your retirement plan is all in stocks & bonds dependent, you will be left helpless. Got any gold or silver?

http://www.youtube.com/watch?feature...&v=hZl902JEJZc

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Hell with gold and silver, got enough steel, copper, brass and lead?

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Originally Posted by Aloha_Shooter

Hell with gold and silver, got enough steel, copper, brass and lead?

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Haha, well I'm "diversifying" like I've always learned was best ;).

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Originally Posted by Aloha_Shooter

It always amazes me how many people think about storing a year's worth of food but don't think about how they'll get potable water. If you're really talking about an apocalyptic scenario, wouldn't you like to have a ceramic water filter and small supply of replacement cartridges? Perhaps your BOL has its own well -- if not, do you think the municipal water supply will magically continue to operate?

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The water storage should go without saying. Rules of three. Thank you CPT Obvious. The thread was about hyper inflation. Food storage isn't always about the EOTWAWKI, it could be a spouse looses a job, income slows as food prices increase. The Fed will have to do some thing, as it is now impossible to pay off the debt. We may see a new currency. You'll see your 401k and other retirement plans nationalized before gold is confiscated.

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Originally Posted by Rust_shackleford

....You'll see your 401k and other retirement plans nationalized before gold is confiscated.

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What's going to happen if 401k's, IRA's, 403B's, thift-savings plans, etc are "nationalized"?
I mean that as an open ended question with respect to the effects on the accounts as well as the reactions of the population with those kinds of accounts...

The nationalized version is the SSN. I dont think your 401k etc could ever be nationalized, unless if you like in North Korean style rule. However, in an event like hyperinflation, they can freeze the market. This has happened many times through out the world.

http://www.govtrack.us/congress/bills/111/s3760

http://ppjg.me/2010/09/12/nationaliz...-middle-class/

^^^ that's nationalized management of your retirement. The term 'nationalized' in the context of hyperinflation is as in confiscation. Like I said, we already have nationalized system as in SSN.

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Originally Posted by Zundfolge

Good point.

If nothing else keep a few extra bottles of chlorine bleach handy. Add about 1/8th teaspoon per gallon of water ... if the bleach has been stored more than a year, double that (it loses effectiveness over time). Let it sit for at least an hour before drinking (takes about 45 minutes to kill any Giardia).

Bleach is good for a short term solution. But good filtration and storage is a necessity for long term.

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Buy the dry powder chlorine for swimming pools - pool shocker... As a dry powder it has multi-decade shelf life ( when stored in screw top gallon jugs) and can treat a huge volume of drinking water. You can mix up a gallon or so of "bleach" as needed to treat your water supply.

Not a problem for me as I have a well which has its own set of problems. I need 30A of 220VAC for my well pump - That is more than my backup generator can handle with the starting surge. - So I'm looking at old school solutions - Those windmill pumps from 100 years ago are still made - except now with a stainless body vrs cast iron. The price of the complete set up digs deeply into your wallet and bank account - but when the power goes off - clean water may be worth more than gas.