Our USD system is just about to collapse.

[ASH]

Re: Our USD system is just about to collapse.

This is my biggest current fear. It may also likely be my pitchfork moment where I transition from a personally responsible productive adult to a gun-toting, government-hating animal. They better stick with a new 1% tax here and closing a loophole there, cause if they come for my life's savings in one fell swoop it ain't gonna be pretty.

Myself, I think the government probably won't take the route of total confiscation, for exactly the reason you state. They can accomplish much the same thing by taxation (of assets rather than income), without stirring up anywhere near the same level of social unrest. For that matter, printing money may accomplish much the same thing as an annual tax upon assets.

[vinoveri]

Re: Our USD system is just about to collapse.

.... At the point where those systems undergo a collapse worthy of the name, I'm not sure one is "buying" anything.

except perhaps several steps closer to "buying the farm"

[vinoveri]

Re: Our USD system is just about to collapse.

...

There will be annual wealth taxes of 1% or more on all your paper assets

They will do an Argentina and expropriate our individual retirement assets, giving us some sort of worthless government annuity instead.

careful RM, you are playing jtabeb's song.

I've been struggling with deciding whether to liquidate any of my IRAs (where most of my very limited wealth) as a hedgle against this, but can't seem to convince myself - probably the 30% bite the feds would get that's keeping me from doing it.
If there were no penalty, I would liquidate everything and buy a farm.

[rogermexico]

Re: Our USD system is just about to collapse.

careful RM, you are playing jtabeb's song.

I've been struggling with deciding whether to liquidate any of my IRAs (where most of my very limited wealth) as a hedgle against this, but can't seem to convince myself - probably the 30% bite the feds would get that's keeping me from doing it.
If there were no penalty, I would liquidate everything and buy a farm.

To me, taking the massive tax hit of liquidating would be a signal for them not to do it

I don't know for sure where devaluation becomes collapse. I sure see the former, but I don't see an Eagle buying a house or oxen-drawn mercedes.

The fiscal deficit alone will drive them to this, and people will believe the lies and promises and pitchfork sales will be modest.

[wayiwalk]

Re: Our USD system is just about to collapse.

Where are we on the lunar cycle? Is the moon full?

I admit I'm particularly vulnerable to doomster thinking this week, and I see many others are too.

It's amazing to me that the media is drinking the "we've reached the bottom of the market" kool-aid, at least as of last week; it's amazing how the short-term memory is leading the way.

[bpwoods]

Re: Our USD system is just about to collapse.

Prescient comment. I have had such encounters and reactions. Makes you quite despondent. Some people do not think in 'straight', conventional ways, but construct cognitive structures by thinking in curves, loops and jumbles. Most of my family think I am some sort of Shaman - avoid unless absolutely necessary! Keep with the programme! We are very adaptable (I hope) persons. Adaptation is essential for survival of genes!

Brian P

[lakedaemonian]

Re: Our USD system is just about to collapse.

It absolutely astounds me that people aren't CONTINUOSLY talking about the impending shift in the world economy.

It's analogous I think, to someone heading towards a retaining wall moving very slowly but on impact they'll disintergrate. They don't want to see it, talk about it or especially think about it. But don't kid yourself, they know its coming. Subconciously, during commercial breaks on their flat screen TVs a little voice in their head says "you're screwed pal" right before dancing with the stars comes back on, then they relapese back into catatonia.

Agreed 100%..........

the regret held by those who KNEW they should act, but don't, will surely be unbearable.

[jtabeb]

Re: Our USD system is just about to collapse.

The chaos I believe is going to follow is going to be ugly, and more money in my bank account won't make me feel better if thugs are breaking in my home and the tax man is parked outside my door every morning. Remember, its not what you make, its what you keep.

Which is why guns and ammo are the best investments you can make.

Remember the golden rule.

"He who has the guns, gets the gold, silver ,food, etc."

[jpatter666]

Re: Our USD system is just about to collapse.

I think it's a bit of head-in-the-sand and wolf crying.

No one wants to think things could get SO bad -- I'm a pessimist myself and I'm constantly asking am I just being paranoid. Recently I posted a thread asking "could we be wrong?"

Secondly, there's been howling about the deficits and the dollar since the Reagan years and nothing substantial has happened (yet!). This actually is a question I'd like EJ to address more -- a tenet for all the bubbles is "this time it's different". And it always proves false.

Well, people have been saying for some time that the dollar would implode, big crash, etc and nothing substantial happened. EJ is saying "this time it's different".

Certainly there's been lots of data towards that point (which is why I'm a subscriber) but I would like to hear more on why he's so sure.

[charliebrown]

Re: Our USD system is just about to collapse.

I live in northeast illinois. Because the fed doesn't think im rich yet , my average fed tax rate is going down. However ... My state is in deep doo-doo. I will surely see a rise in state income taxes from 3% to 4% or 5%.
Our sales tax has been raised from 7% to 8%. My property taxes went up from $7500 on a 2000 sq ft house to $8000. ouch. Thank goodness I dont smoke. Carton of marlboros now stand at 42.00

oh and there is a red-light camera going up on every street corner. Have a bad day and roll a right turn on red light and have a $100 fine in your mail box a week later.

[flintlock]

Re: Our USD system is just about to collapse.

Which is why guns and ammo are the best investments you can make.

Remember the golden rule.

"He who has the guns, gets the gold, silver ,food, etc."

Actually my guns have been my best investment lately, with appreciation of 30-50% since just the fall.

[rjwjr]

Re: Our USD system is just about to collapse.

Agreed 100%..........

the regret held by those who KNEW they should act, but don't, will surely be unbearable.

Don't take this wrong as I love my wife of 25 years very much, but I know I am caught between the current "but I don't want to change my lifestyle" (ie:another gun?! why did we spend $7K on a generator?! i don't want to move to the sticks!) and the probable future inquiry of "why didn't you do something?"

We can nibble around the edges, but it's human nature, apparently, to not take action until absolutely forced to. Reminds me of the previous thread I started about watching Schindler's List again and how so many of the Jews were in complete denial and inaction, even in the face of so much evidence and first hand experience of the escalating atrocities being commited against them. The "atrocities" are staring us iTuliper's in the face so the necessary actions and preparations must continue, in spite of the outcast/crazy Uncle labels we will be earning.

[BadJuju]

Re: Our USD system is just about to collapse.

Some of us have limited resources and have to manage what we can with what we have. I bought a gun, ammo for it, some food to last a while, a heavy-duty portable water filter, and some other tools to be more self-sufficient. I do not know how well they will serve me in the future, and I certainly wish I had more, but that is beyond my control.

[jtabeb]

Re: Our USD system is just about to collapse.

Actually my guns have been my best investment lately, with appreciation of 30-50% since just the fall.

Well in my case, my ammo is up more than my guns (and they are up a similar amount to what you are seeing).

[jtabeb]

Re: Our USD system is just about to collapse.

Some of us have limited resources and have to manage what we can with what we have. I bought a gun, ammo for it, some food to last a while, a heavy-duty portable water filter, and some other tools to be more self-sufficient. I do not know how well they will serve me in the future, and I certainly wish I had more, but that is beyond my control.

Each of us, can ONLY do what we can do. So the point is to do everything you can with what you got and be happy with the results vs. not doing what you could have and living (or not living) to regret the decision.

Do I wish I had $10 Million in gold and silver bullion, you bet! Do I have $10 Million, not even close. So I do the best I can with what I got cause that's all I'm able to do.

No sin for realizing we all have a limited amount of resources available to us.
(It's better than a lot of other people can figure out, it would seem.)