The Practical Action Tips for Economic Crisis Thread

[Sapiens]

Many of the things that need to be done to protect yourself in a deflation cannot be revealed in public, not for fear of the public, but because those in control of the central planning can see you coming a mile away if you are making preparations.

I suggest we create a by "invitation" thread or forum for sharing tips or practical advice. Clearly with the caveat of a nothing to be construed as professional or legal advice and a understanding that you will release and hold harmless those sharing their opinion should you take any action.

Any ideas or suggestions?

[dbarberic]

Re: The Practical Action Tips for Economic Crisis Thread

Hmmm.... deflation.

I would think cash would be good.

Other than withdrawing all your cash and putting it under your bed, I don't understand what “central planning” would stop?

I don't get your secrecy. What’s to be afraid of? What do you foresee in the future that I don't?

[Sapiens]

Re: The Practical Action Tips for Economic Crisis Thread

I don't get your secrecy. What’s to be afraid of? What do you foresee in the future that I don't?

http://www.bloomberg.com/apps/news?p...XIw&refer=home

Fed Bypasses Procedures to Gain Auction Authority in Rare Move

By Scott Lanman

Dec. 12 (Bloomberg) -- The Federal Reserve took advantage of emergency powers to authorize the auctions that officials felt were necessary to ease a credit squeeze, concluding it otherwise lacked legal permission to do so.

The Fed bypassed requirements for prior notice and public comment when writing the regulations to implement today's agreement with the European Central Bank and three other central banks. The Fed's official notice today said any delay caused by following standard procedures would have been ``contrary to the public interest.''

Such actions, while used ``sparingly'' over the years, were justified today because the new rules probably carry few costs, a former Fed attorney said. The action today was part of a coordinated effort with other central banks to alleviate a global growth slowdown, acting after interest-rate cuts failed to allay concerns that banks will reduce lending.

``It's something that they normally don't do,'' said Oliver Ireland, who worked as a Fed counsel for more than two decades and is now a partner at Morrison & Foerster in Washington. ``If you look at doing things to stabilize volatile markets, I don't think it's very hard to find good cause. There's no tangible harm to anybody.''

The Fed uses the bypass powers regularly when changing the rate on direct loans to banks, though rarely when publishing broader rule changes. The Administrative Procedure Act requires federal agencies to give public notice and solicit comments on regulatory changes though with exceptions, Ireland said.

`Good Cause'

Such notice wasn't needed in this case, the Fed said, because the decision relates to ``public loans'' and because there's ``good cause'' to justify no delay. Any wait in adopting the rule changes would be ``impracticable, unnecessary and contrary to the public interest.''

In addition, any advance notice may have spoiled the relative surprise the Fed and its counterparts delivered today.

It's not the first time Fed officials have taken unorthodox steps to prevent word of an upcoming decision from leaking. In August, St. Louis Fed President William Poole skipped an emergency conference call among policy makers and kept dinner plans with university professors and students to avoid any hint the central bank was going to cut the discount rate and revise its economic outlook the next day.

The Fed said that today's changes would be temporary and end on an unspecified date. If officials sought to make them permanent, the central bank would seek public comment.

``In general, we would like for the Fed and other regulatory agencies to solicit comments, but given the circumstances, it was important to move quickly,'' said Keith Leggett, senior economist at the American Bankers Association in Washington.

To contact the reporter on this story: Scott Lanman in Washington at slanman@bloomberg.net

You know, on second thought, never mind.

[dbarberic]

Re: The Practical Action Tips for Economic Crisis Thread

http://www.bloomberg.com/apps/news?p...XIw&refer=home




You know, on second thought, never mind.

OK.... so what do you think they are going to do next... freeze accounts, outlaw gold, etc.?

I don't understand what additional preperations one could do that would need to be discussed in secrecy to prevent "central planning" from finding out what your doing and stopping it. Unless the amount of money you have is so large that you could shut down a bank or move markets by withdrawing all your funds.

[metalman]

Re: The Practical Action Tips for Economic Crisis Thread

Hmmm.... deflation.

I would think cash would be good.

Other than withdrawing all your cash and putting it under your bed, I don't understand what “central planning” would stop?

I don't get your secrecy. What’s to be afraid of? What do you foresee in the future that I don't?

"deflation... cash good"?

oy! haven't you guys read anything on this site? debt deflation... check. recession... check. banks can't lend much... check. demand off... check. monetary unit gains in value? nfw.

i'll make a point ej hasn't as far as i know...

there have been two.. count 'em two... periods of monetary deflation in the past century total yet literally dozens of inflations as a result of debt deflation.

monetary deflation:
1. great depression usa 1930s
2. japan 1990s (sort of)

that's it!

1. usa 1930s depression...why? usa on gold standard, condition does not exist today

2. japan 1990s... why? they chose not to risk a hyper-inflation like the one that ruined them in the 1920s.

inflation:
everything else

hoard dollars? i'd sooner hoard old newspapers.

[touchring]

Re: The Practical Action Tips for Economic Crisis Thread

gold will be the best, especially with the spectre of lawsuits coming. gold can be hidden underneath the house!

[Finster]

Re: The Practical Action Tips for Economic Crisis Thread

The answer depends too much on individual circumstances to make one-size-fits-all generalizations, but given your economic crisis premise and the uncertainties about how it will play out, you probably want to have both an ample supply of physical money in the form of gold, silver, platinum, copper coins and a roughly equal supply of "physical" USD.

I wouldn't necessarily eschew all investments, so unless you are determined to empty out your brokerage account, you could divide the balance there among four index funds, again in roughly equal proportions: SHY, TLT, VTI & VEU. These are ETFs representing short-term UST, long-term UST, US stocks, and foreign stocks, respectively. Season to taste ... for example, if you're more inflation-wary you could spice it up with some extra commodity exposure via DJP and GSP, among other offerings.

[santafe2]

Re: The Practical Action Tips for Economic Crisis Thread

hoard dollars? i'd sooner hoard old newspapers.

I agree with this completely. The US debt based economy will not withstand the US$ moving up in value against all asset groups. It's the Fed's job to slowly debase the value of our currency and the value of the underlying debt. If required, they will devalue the currency more quickly than usual to force assets to devalue through inflation instead of a more obvious deflationary devaluation. If, as I think this thread is suggesting, we experience an economic collapse the collapse of the US$ will already be old news.

[jacobdcoates]

Re: The Practical Action Tips for Economic Crisis Thread

touchring, if you gonna keep gold under the house i suggest you buy a rifle with some of those depreciating bonars before converting them into gold It would be a wise investment indeed.

[dbarberic]

Re: The Practical Action Tips for Economic Crisis Thread

I guess Sapians is in the deflationary camp.

For the record, I follow EJ's old thread.... dis-inflation followed by lots and lots of inflation.

I have out my disco ball and trying to get the wife to put on some hot pants, because 70's stagflation here we come.....

[Sapiens]

Re: The Practical Action Tips for Economic Crisis Thread

The answer depends too much on individual circumstances to make one-size-fits-all generalizations, but given your economic crisis premise and the uncertainties about how it will play out, you probably want to have both an ample supply of physical money in the form of gold, silver, platinum, copper coins and a roughly equal supply of "physical" USD.

I wouldn't necessarily eschew all investments, so unless you are determined to empty out your brokerage account, you could divide the balance there among four index funds, again in roughly equal proportions: SHY, TLT, VTI & VEU. These are ETFs representing short-term UST, long-term UST, US stocks, and foreign stocks, respectively. Season to taste ... for example, if you're more inflation-wary you could spice it up with some extra commodity exposure via DJP and GSP, among other offerings.

Thanks Finster, good info.

[Sapiens]

Re: The Practical Action Tips for Economic Crisis Thread

I guess Sapians is in the deflationary camp.

For the record, I follow EJ's old thread.... dis-inflation followed by lots and lots of inflation.

I have out my disco ball and trying to get the wife to put on some hot pants, because 70's stagflation here we come.....

LOL, there is no camp. There is only what the facts point to, if you understand the fundamentals.

Now, I concede that this may have a political resolution, but to me it seems not many of you have made your fortune in usury, and do not understand that lending is not only about profit, but as much about control.

The secret is simple, if you control the currency, you control those that proclaim the laws.

Currency deflation is just as much a tool as currency inflation is. Let me point you into a little clue, read this:

http://www.iptv.org/IowaPathways/myp...unid=ob_000070

Tell me, how can produce cost more to produce while people are starving?

If you can answer that question, then you know what's coming, if you can't answer the question, then you have no clue about the calamity that's about to strike humanity.

-Sapiens

[touchring]

Re: The Practical Action Tips for Economic Crisis Thread

We don't get the clue! :p

LOL, there is no camp. There is only what the facts point to, if you understand the fundamentals.

Now, I concede that this may have a political resolution, but to me it seems not many of you have made your fortune in usury, and do not understand that lending is not only about profit, but as much about control.

The secret is simple, if you control the currency, you control those that proclaim the laws.

Currency deflation is just as much a tool as currency inflation is. Let me point you into a little clue, read this:

http://www.iptv.org/IowaPathways/myp...unid=ob_000070

Tell me, how can produce cost more to produce while people are starving?

If you can answer that question, then you know what's coming, if you can't answer the question, then you have no clue about the calamity that's about to strike humanity.

-Sapiens

[Guest]

Re: The Practical Action Tips for Economic Crisis Thread

Thanks Finster, good info.

Sapiens -

Why not also offer your own posts as clear, simply laid out, and expository, rather than post in the form of oracular riddles and hints with suggestions readers here pursue copious amounts of your further recommended reading?

I am sure many people here would be quite grateful and appreciative of you sharing your insights in a clear, easy to grasp exposition, so they can quickly gain the essential points you are making. Reducing complex ideas to extremely simple terms is probably the very best part of iTulip. I'm sure you have many significant points to offer, but they seem often couched in the form of hints and clues, rather than simple exposition, which presume upon the time of readers to chase down those hints.

Your own appreciation of a succinct, actionable post by Finster is a great example!

Respectfully.

[Andreuccio]

Re: The Practical Action Tips for Economic Crisis Thread

Sapiens -

Why not also offer your own posts as clear, simply laid out, and expository, rather than post in the form of oracular riddles and hints with suggestions readers here pursue copious amounts of your further recommended reading?

This particular link isn't that long. A few paragraphs at most. I, for one, actually enjoy the cat and mouse game, and the recommended readings. It doesn't always give me answers, but it keeps me thinking.