Gold just hit $1600 per ounce. How high can it go?

Well, maybe. Do a very basic walk through on a "worst case scenario." No telling if the worst will happen, but for the sake of being prepared, say it does.

Lets say you wake up tomorrow and the USD has lost most of its value. What happens next?

1) There will be a run on the banks. Everyone will want whatever cash they do have that is sitting in the bank, be it $300 or $300,000. But the bank may as well be handing out toilet paper. But there is a better chance they won't be open at all. And if they are, they either won't have money to give everyone, and the money they do have is now worthless.

2) With the collapse of the currency, all the other items you use in your life did not crash with it. Instead, they just got REALLY expensive. So what little money, if any, that you do have, it doesn't buy much. So how do you eat, pay for fuel, pay your car payment, insurance, pay your rent / mortgage and taxes? Oh yea, banks and the IRS are still going to want to be paid, as shitty as that may be.

How will you function with money that is hardly worth anything and everything around you is too expensive to buy?

So now what? You sit around broke until someone comes up with a solution to get everything back on track again. Maybe you've lost your home and your car. Where will you be living if you do?

Were you lucky enough to keep your job to at least have a little bit of money coming in? If not, you're doubled screwed. Chances are you will lose your job.

3) Everything is finally getting back on track. Whew. Be it a new currency or due to hyperinflation they print new bills that are 1 Million Dollar Notes. However, it now costs 2 Million USD to buy a gallon of milk. But if you lost all your dollars already, how do you get your hands on such large notes in enough quantity for you to keep on living your life?

And what if a new currency is introduced? How will you get your hands on that? No one is just going to give it to you. Your bank isn't going to give you what you lost in a new currency. You won't get any unless you have something that you can buy it with or trade for it. That means you now live in poverty and there is no more middle class. Only those who prepared or were lucky enough to have some sort of assets to trade for this new currency will be getting any of this new currency. Of course, criminals would also be getting some of it because they will be stealing it from those who can not protect themselves.

So where will you end up if such a thing happens? It will be a soup line and shelter for many. Not everyone of course, as many will be prepared and many fat cats will know how to profit from it all, but if you don't know what to do and do nothing, don't prepare at all... that is the type of person who is probably going to lose everything.

Of course it may not be a worse case scenario and everyone will be fine. But if you look back in history, these sort of things happen and they happen fast without warning. The good news is, the countries always rebound even after a total meltdown. But those who lose it all in the process, are still left holding their ass.

Just go back and look at history if you want to know what will happen.

If someone even believed that there will be sustained printing of money let alone hyperinflation, then the appropriate thing to do now is to borrow as much as you can and leverage yourself into assets such as real estate, gold, commodities, stock, etc.

And there is the million dollar question, will that happen?

You are 100% dead on the money about what to be doing if you think it will. Those who play it right stand to make a lot of money and come out of such a crash a very wealthy person.

There is no doubt something will happen. Just to what degree is anyone's guess at this point.

https://docs.google.com/Doc?id=dtxqwqr_20dc52sm

i will state ftr, that it will never happen.



greece bailout + all world markets hit hard when u.s. market collapsed 3 years ago = u.s. saved at all costs.

The world cant accept dollars forever if the Fed just keeps printing them out of thin air.
Why should someone work hard for the money that just was printed up and is losing value all the time?
People that got a lot of USDs saved up is going to exchange them into gold/silver or other currencies because they know they will lose too much of their savings if they dont.
A couple of years ago 1 USD was worth more than 10 SEK. Now it's worth about 6.5 SEK and that's a huge drop! It was nearly under 6.0 a couple of months ago!
This is heading for a world wide disaster and it will come sooner or later. That "We're too big to fail" is just bullshit.

it will be up to your country and those along side yours, want your economy to shit bricks too, then all y'all let the u.s. collapse. your call. you rode us up during the goods times, you'll be right there when it all takes a shit, your comments prove that, your currency is inextricably tied to ours.

Hope no one went long this morning.

It's going to take a handful of other countries with it. No doubt about it.

I agree with everything you said except for people losing their homes. People are already losing their homes, wait until whatever money they do have is only worth 20% of what it was the day before and they can no longer afford it. However, you're right about the empty homes, they will become homes of squatters. But you're also going to see a lot of tents for those who have nothing and couldn't secure a house to squat in.

Doesn't Florida already have a tent area set up for people who have lost their homes? I saw something about it somewhere recently.

Outcasts: Tonight Tens Of Thousands Of Formerly Middle Class Americans Will Be Sleeping In Their Cars, In Tent Cities Or On The Streets

I suggest starting ukash agents for your sites in the tent villages, it will be just like southpark when they have to go out west for internet.

What are you using to measure this?



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Okay, just curious. Wasn't sure whether you were using CPI or a derivative or some other measure, and over what period of time you were measuring.


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Yes, but all of that is nothing to worry about. Same with the USD.

Just put your faith in your government and know that your country is too big to fail. They would NEVER let it happen. Never, ever.

</sarcasm>

The dow is up 146 points so far. I have given up trying to predict what will make it rise and what ill make it crash.