just how dangerous is cash?

[CricketOnTheHearth]

It depends on which financial blogs are saying these things.

Every blogger has their own bias, and half the trick of reading them is to figure out what their bias is. Then keep in mind that their comments are shaded with it.

For instance, gold bugs are sure that hyperinflation is around the corner and cash will be worthless. Mish hates public unions. Dr Housing Bubble keeps pointing out the signs that piles of foreclosures are going to come onto the market any time now. Karl Denninger is positive that the US’ debt load is going to blow up, possibly with riots in the streets following. The Archdruid argues that we are have passed peak oil, so it is time to prepare for a postindustrial world.

Many of their arguments made perfect sense to me over the past 3 years… only to see virtually none of their predictions come true yet. It seems the Wall-street/DC complex has succeeded in casting our economy in amber, preventing a crash of any sort– bank, stock/bond market, or housing prices. I’m starting to wonder if Adam Smith’s invisible hand, and the rest of him, are bound and gagged to a chair in a dark room somewhere.

The best I can do is hedge my bets around. I don’t invest in the markets any more, I don’t contribute more than a pittance to my 401(K) (because the only place that money goes is into the markets). I am stashing cash as fast as I can, some of it literally under my mattress, because even Union Bank or my credit union could go under, who knows. I am also buying physical silver (dimes). I don’t know if this is the right path but what else can I do? It’s all clowns to the left of me and jokers to the right. Wish I could buy a farm in the Midwest, then at least I’d have a place to grow food.

[Coronita]

Question:

If the U.S. is bent of devaluing the dollar to achieve more favorable terms in trade exports, but then other nations (europe, japan, etc) follows suite to trash their currency too….Then relatively speaking, what is the value of buying gold?

I could understand if the U.S. is the only nation debasing it’s currency. But seems like europe and japan are following U.S. lead…

Yes China could conceivably coming out of this totally rich…But it’s like a party of 10 people. If 9 people are dirt poor and there is 1 rich guy that is flamboyant about it, pretty soon that one rich guy ends up getting beaten up and thrown out of the party…Relatively speaking for the remaining 9 people, no one is worse/better off than before

🙂

[Coronita]

Question:

If the U.S. is bent of devaluing the dollar to achieve more favorable terms in trade exports, but then other nations (europe, japan, etc) follows suite to trash their currency too….Then relatively speaking, what is the value of buying gold?

I could understand if the U.S. is the only nation debasing it’s currency. But seems like europe and japan are following U.S. lead…

Yes China could conceivably coming out of this totally rich…But it’s like a party of 10 people. If 9 people are dirt poor and there is 1 rich guy that is flamboyant about it, pretty soon that one rich guy ends up getting beaten up and thrown out of the party…Relatively speaking for the remaining 9 people, no one is worse/better off than before

🙂

[Coronita]

Question:

If the U.S. is bent of devaluing the dollar to achieve more favorable terms in trade exports, but then other nations (europe, japan, etc) follows suite to trash their currency too….Then relatively speaking, what is the value of buying gold?

I could understand if the U.S. is the only nation debasing it’s currency. But seems like europe and japan are following U.S. lead…

Yes China could conceivably coming out of this totally rich…But it’s like a party of 10 people. If 9 people are dirt poor and there is 1 rich guy that is flamboyant about it, pretty soon that one rich guy ends up getting beaten up and thrown out of the party…Relatively speaking for the remaining 9 people, no one is worse/better off than before

🙂

[Coronita]

Question:

If the U.S. is bent of devaluing the dollar to achieve more favorable terms in trade exports, but then other nations (europe, japan, etc) follows suite to trash their currency too….Then relatively speaking, what is the value of buying gold?

I could understand if the U.S. is the only nation debasing it’s currency. But seems like europe and japan are following U.S. lead…

Yes China could conceivably coming out of this totally rich…But it’s like a party of 10 people. If 9 people are dirt poor and there is 1 rich guy that is flamboyant about it, pretty soon that one rich guy ends up getting beaten up and thrown out of the party…Relatively speaking for the remaining 9 people, no one is worse/better off than before

🙂

[Coronita]

Question:

If the U.S. is bent of devaluing the dollar to achieve more favorable terms in trade exports, but then other nations (europe, japan, etc) follows suite to trash their currency too….Then relatively speaking, what is the value of buying gold?

I could understand if the U.S. is the only nation debasing it’s currency. But seems like europe and japan are following U.S. lead…

Yes China could conceivably coming out of this totally rich…But it’s like a party of 10 people. If 9 people are dirt poor and there is 1 rich guy that is flamboyant about it, pretty soon that one rich guy ends up getting beaten up and thrown out of the party…Relatively speaking for the remaining 9 people, no one is worse/better off than before

🙂

[CA renter]

[quote=flu]Question:

If the U.S. is bent of devaluing the dollar to achieve more favorable terms in trade exports, but then other nations (europe, japan, etc) follows suite to trash their currency too….Then relatively speaking, what is the value of buying gold?

I could understand if the U.S. is the only nation debasing it’s currency. But seems like europe and japan are following U.S. lead…

Yes China could conceivably coming out of this totally rich…But it’s like a party of 10 people. If 9 people are dirt poor and there is 1 rich guy that is flamboyant about it, pretty soon that one rich guy ends up getting beaten up and thrown out of the party…Relatively speaking for the remaining 9 people, no one is worse/better off than before

:)[/quote]

The global currency devaluations are probably the #1 reason people are buying gold. It’s the only “currency” left that can’t be easily debased. Everything else (stocks, bonds, some commodities) are too risky as there is so much manipulation, so gold is really the only thing left.

[CA renter]

[quote=flu]Question:

If the U.S. is bent of devaluing the dollar to achieve more favorable terms in trade exports, but then other nations (europe, japan, etc) follows suite to trash their currency too….Then relatively speaking, what is the value of buying gold?

I could understand if the U.S. is the only nation debasing it’s currency. But seems like europe and japan are following U.S. lead…

Yes China could conceivably coming out of this totally rich…But it’s like a party of 10 people. If 9 people are dirt poor and there is 1 rich guy that is flamboyant about it, pretty soon that one rich guy ends up getting beaten up and thrown out of the party…Relatively speaking for the remaining 9 people, no one is worse/better off than before

:)[/quote]

The global currency devaluations are probably the #1 reason people are buying gold. It’s the only “currency” left that can’t be easily debased. Everything else (stocks, bonds, some commodities) are too risky as there is so much manipulation, so gold is really the only thing left.

[CA renter]

[quote=flu]Question:

If the U.S. is bent of devaluing the dollar to achieve more favorable terms in trade exports, but then other nations (europe, japan, etc) follows suite to trash their currency too….Then relatively speaking, what is the value of buying gold?

I could understand if the U.S. is the only nation debasing it’s currency. But seems like europe and japan are following U.S. lead…

Yes China could conceivably coming out of this totally rich…But it’s like a party of 10 people. If 9 people are dirt poor and there is 1 rich guy that is flamboyant about it, pretty soon that one rich guy ends up getting beaten up and thrown out of the party…Relatively speaking for the remaining 9 people, no one is worse/better off than before

:)[/quote]

The global currency devaluations are probably the #1 reason people are buying gold. It’s the only “currency” left that can’t be easily debased. Everything else (stocks, bonds, some commodities) are too risky as there is so much manipulation, so gold is really the only thing left.

[CA renter]

[quote=flu]Question:

If the U.S. is bent of devaluing the dollar to achieve more favorable terms in trade exports, but then other nations (europe, japan, etc) follows suite to trash their currency too….Then relatively speaking, what is the value of buying gold?

I could understand if the U.S. is the only nation debasing it’s currency. But seems like europe and japan are following U.S. lead…

Yes China could conceivably coming out of this totally rich…But it’s like a party of 10 people. If 9 people are dirt poor and there is 1 rich guy that is flamboyant about it, pretty soon that one rich guy ends up getting beaten up and thrown out of the party…Relatively speaking for the remaining 9 people, no one is worse/better off than before

:)[/quote]

The global currency devaluations are probably the #1 reason people are buying gold. It’s the only “currency” left that can’t be easily debased. Everything else (stocks, bonds, some commodities) are too risky as there is so much manipulation, so gold is really the only thing left.

[CA renter]

[quote=flu]Question:

If the U.S. is bent of devaluing the dollar to achieve more favorable terms in trade exports, but then other nations (europe, japan, etc) follows suite to trash their currency too….Then relatively speaking, what is the value of buying gold?

I could understand if the U.S. is the only nation debasing it’s currency. But seems like europe and japan are following U.S. lead…

Yes China could conceivably coming out of this totally rich…But it’s like a party of 10 people. If 9 people are dirt poor and there is 1 rich guy that is flamboyant about it, pretty soon that one rich guy ends up getting beaten up and thrown out of the party…Relatively speaking for the remaining 9 people, no one is worse/better off than before

:)[/quote]

The global currency devaluations are probably the #1 reason people are buying gold. It’s the only “currency” left that can’t be easily debased. Everything else (stocks, bonds, some commodities) are too risky as there is so much manipulation, so gold is really the only thing left.

[Anonymous]

[quote=CA renter]
The global currency devaluations are probably the #1 reason people are buying gold. It’s the only “currency” left that can’t be easily debased. Everything else (stocks, bonds, some commodities) are too risky as there is so much manipulation, so gold is really the only thing left.[/quote]
except where gold is bought using debt and where it is synthetic/piece of paper. how many really hold the gold in a safe? if things get bad, your synthetics wont matter. and if you hold gold you better be properly armed.

back to the question is cash dangerous. we dont know. hard assets will soften the blow if things are anywhere between where we are now and moderately bad. anything worse it will totally be uncharted territories. i really dont want to see that. scaredycat buy that property and stop worrying. there isnt a clear cut answer.

[Anonymous]

[quote=CA renter]
The global currency devaluations are probably the #1 reason people are buying gold. It’s the only “currency” left that can’t be easily debased. Everything else (stocks, bonds, some commodities) are too risky as there is so much manipulation, so gold is really the only thing left.[/quote]
except where gold is bought using debt and where it is synthetic/piece of paper. how many really hold the gold in a safe? if things get bad, your synthetics wont matter. and if you hold gold you better be properly armed.

back to the question is cash dangerous. we dont know. hard assets will soften the blow if things are anywhere between where we are now and moderately bad. anything worse it will totally be uncharted territories. i really dont want to see that. scaredycat buy that property and stop worrying. there isnt a clear cut answer.

[Anonymous]

[quote=CA renter]
The global currency devaluations are probably the #1 reason people are buying gold. It’s the only “currency” left that can’t be easily debased. Everything else (stocks, bonds, some commodities) are too risky as there is so much manipulation, so gold is really the only thing left.[/quote]
except where gold is bought using debt and where it is synthetic/piece of paper. how many really hold the gold in a safe? if things get bad, your synthetics wont matter. and if you hold gold you better be properly armed.

back to the question is cash dangerous. we dont know. hard assets will soften the blow if things are anywhere between where we are now and moderately bad. anything worse it will totally be uncharted territories. i really dont want to see that. scaredycat buy that property and stop worrying. there isnt a clear cut answer.

[Anonymous]

[quote=CA renter]
The global currency devaluations are probably the #1 reason people are buying gold. It’s the only “currency” left that can’t be easily debased. Everything else (stocks, bonds, some commodities) are too risky as there is so much manipulation, so gold is really the only thing left.[/quote]
except where gold is bought using debt and where it is synthetic/piece of paper. how many really hold the gold in a safe? if things get bad, your synthetics wont matter. and if you hold gold you better be properly armed.

back to the question is cash dangerous. we dont know. hard assets will soften the blow if things are anywhere between where we are now and moderately bad. anything worse it will totally be uncharted territories. i really dont want to see that. scaredycat buy that property and stop worrying. there isnt a clear cut answer.

[Author]

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