The Great Credit Contraction eBook

[trufiend138]

nobody enjoys all these gold-drum beating than ppl who mine and own gold stores!!!! watch it go up!!!

[trufiend138]

when collapse occurs= ur just gonna have to form posse and TAKE what u dont have and protect it within ur community..AND design community for sustainable renewablility.

[GlobVetus]

FIAT "money" vs GOLD "money" 0-10

and out..

[asdfjhaskdjfhasd]

Me too!

[mlndstream]

why are non-monetary commodities near the top of the inverted pyramid?, regardless of whether this crisis results in extreme inflation or extreme deflation I will be wanting energy fuels and food like grains etc...more than I'll be wanting gold/silver, even though I do, as the precious metals won't be much use if there's not food or heating/transport fuels to survive anyway. Plus, bartering is a more primative but reliable means of exchange than precious metals,so stock-up on essentials too

[herbs814]

Non-monetary commodities can be highly illiquid, especially in large quantities. Food and fuels may be helpful if you can stay in one place... but if evacuation becomes necessary, how do you transport large quantities of food and fuel and other supplies? The challenge is not just to store up what you need, but to be able to transport it and your family if needed.

Small coins and bars with high value to weight ratios are more efficient and portable stores of value, even if "you can't eat gold."

[mlndstream]

how would base metal coins feature in the upside down pyramid with gold at the bottom? as the metal content of the small denomination coins where I live (Australia) have a metal value fast approaching face value, in fact in 2007 our smallest coin the 5 cent coin was worth 6.5 cents in metal(75%copper,25%nickel), but then the financial crisis dropped the commodity prices and so they decided to keep them in circulation, but they seem immune from deflation and inflation with face value and metal?

[herbs814]

Base metal coins may be more liquid (for now) because they are more familiar to others with whom you might want to trade. However, government coins do not hold their value as well as precious metal, since the govt can simply change the metal content.

The face value of government coins is an arbitrary figure set by the government, contrary to the reality of market prices. The govt must then engage in price-fixing to keep the value of the metal suppressed relative to the arbitrary face value.

[jonahtrainer]

Fascinating book and glad I got a copy.