Submit questions for our upcoming money & investments podcast

Adam Taggart
By Adam Taggart on Fri, Aug 10, 2012 - 7:49pm

We've asked our endorsed financial advisors to field Q&A from us reflecting the questions on money & investing that our readership cares about most. The conversation will be recorded as a podcast and published on the site in the next 1-2 weeks.

What question(s) would you like to hear addressed?

Let us know in the Comments section below.

If we get too many submissions, we'll focus the first podcast on the most-requested questions. And if feedback is positive, we'll likley make this a recurring segment on the site.

Thanks in advance for your ideas!

cheers,

Adam

40 Comments

jughead13's picture
jughead13
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Posts: 8
Precious metals and government reaction when TSHTF...

Maybe not confiscation, but are some of the potential pitfalls for us PM holders....1)windfall taxation up to a number high enough to offset most of any gains we may have hoped for...2)legislating some form of illegality on ownership and transactions of PM's...even including overseas holdings....effectively making us operate outside the law to maintain a stash or use in barter or to sell to diversify in the future.....3)the origination of some global system by the IMF, BIS, in concert with the G6 or G20 that would effectively diminish the profitability of personal ownership of PM's without substantial risk......?......What are other possible negative scenarios.....and possible remedies that I'm not considering....

Quercus bicolor's picture
Quercus bicolor
Status: Silver Member (Offline)
Joined: Mar 19 2008
Posts: 245
What to hold when savings are limited

For those of us with less than about 1-2 years of living expenses in savings, what is your advice on how to hold them?  Please address specifically precious metals, currency, bank accounts, money market funds, treasury bills and useful stuff such as food or tools.  On another note, what are the best options for a smallish 401K offered through a mutual fund company?

robbie's picture
robbie
Status: Bronze Member (Offline)
Joined: Jul 16 2008
Posts: 91
The Roth IRA

Do you really expect tax-free withdrawals from a Roth IRA in retirement?

I used to believe ( and was told by trusted advisors) that it would be political suicide for our friends in Washington to reneg on the original terms of the Roth IRA. Not surprisingly, I don't have much faith that these monies will be left untouched by TPTB.  Please discss the merits and unappreciated drawbacks to having a considerable portion of ones wealth in a Roth IRA.

Edit: monies and precious metals...

redcloud's picture
redcloud
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Joined: Mar 12 2009
Posts: 12
Precious metals endgame
  1. How might one know that PMs, especially gold, have reached a peak?
  2. Are there any (legal) strategies for cashing in ones PMs, especially large amounts, and avoiding taxes?
  3. Is it reasonable to think that one could at some point buy property, automobiles, or other big ticket items with PMs?
  4. Could one convert gold held in an IRA to some other alternative investment such as an REIT without it being a taxable event?
  5. What are the advantages and disadvantages of holding PMs out of the US?
  6. I also second the questions posted by jughead13 about possible negative scenarios.
Oliveoilguy's picture
Oliveoilguy
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Posts: 401
Ideal Portfolio

What is a good asset allocation model for a 50 - 60 year old person?

DrZaius's picture
DrZaius
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Joined: Jan 15 2012
Posts: 3
Young Person

What would you recommend for a young person (in their early 30s) with a steady income, very little savings or assets, but with significant debt (student loans, mortgage, etc). Should they even be thinking about investments at this point or just paying down debt?

hucklejohn's picture
hucklejohn
Status: Gold Member (Offline)
Joined: Dec 13 2008
Posts: 281
Gold in an IRA

What do you think of holding gold in a traditional IRA? In a Roth IRA?  In a 401k plan (if it is possible)? 

Part of the concern would be the potential for the government to change the rules in some adverse manner.

woody's picture
woody
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Posts: 13
About money itself

In my opinion, the root of the current predicament is fiat money.

Discussing fractional reserve banking with other people, I lack the understanding of the balance sheet of a commercial (non-central) bank. How does fractional reserve banking work? Does every bank in the street really contribute to the expansion of money?

Second question: as the best way to rob a bank is to own one, how does one start a bank? Which criteria has one to fullfill?

Macs's picture
Macs
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Posts: 40
Consider the global audience

I realise most of the audience will be in the USA, but I'm sure the topic will resonate for overseas members too. It would be most useful if any discussions around financial products are explained in basic terms so that we might extrapolate to our own markets/jurisdictions. And we also have different tax regimes, so for any topic, I guess what I'm saying is can the advisor please 'show his workings' so we can follow the reasoning behind the conclusions and judge whether they're appropriate to our situations.  Thanks.

zabolots's picture
zabolots
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Posts: 2
Investing options

What are your opinions on non-traded REIT's for income?

What are your opinions on Guaranteed Minimum Accumulation Benefit annuities?

jminvest's picture
jminvest
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Posts: 6
Self_directed IRA using an LLC

Hello:

I have been reviewing the use of an IRA funded LLC to use as a vehicle for investing in PMs, property, etc.  The LLC approach seems to hold the potential for more flexibility and more control in allocating IRA funds. A discussion on the merits and potential drawbacks of such a design would be much appreciated.

Jim H's picture
Jim H
Status: Diamond Member (Offline)
Joined: Jun 8 2009
Posts: 1555
401K/IRA Safety

My questions of the day revolve around the safety of the 401K and IRA retirement accounts.  There are two threats that I see (beyond a currency collapse) and read about, both of which I would like help handicapping as to probability of occurance;

1)  Gov't steals my money for "my own good" and converts my balance to some kind of special Gov't bond that "can't lose money".  

    It has happened elsewhere;   http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/5504137/Arge...

    and Denninger has warned as well;  http://market-ticker.org/akcs-www?singlepost=2138849 

2)  The counterparty to the account, be it Morgan Stanley, or Fidelity, goes bust and your money is "vaporized".  Ann Barnhardt (who I love for her fearless finanacial truth telling... not so much for her absolute intolerance of people who happen to be gay) wrote about this threat yesterday following a very telling new legal decision;  

  http://barnhardt.biz/   (I can't seem to directly link to her Aug. 10, 3:33 pm piece)

In other words, all customer funds in the United States are now the legal property of JP Morgan, Goldman Sachs, BNYM, or whichever megabank is the counterparty on the loans the FCM or depository institution takes out in order to fund its mega-levered proprietary in-house trading desks.

For the love of God, I don't know what more there could possibly be to say to snap you people out of your normalcy bias trance. You have GOT to get ALL MONIES out of the financial system NOW. This ruling sets precedence for every depository institution, not just futures brokerages. It is now legal in the United States for any financial institution to steal customer funds, borrow money against those funds for the uber-levered proprietary trading use of the financial institution, and the customers have ZERO CLAIM TO THEIR OWN FUNDS once they are in the custody of the financial institution.

The court has ruled that once your money passes out of your PHYSICAL POSSESSION, and I mean PHYSICAL possession, it is no longer yours, and you have no legal claim or legal recourse to it when it is stolen. This includes BANK ACCOUNTS. Money in a bank is in the possession of the BANK, not you. Do you comprehend this? The entire system is utterly devoid of any integrity or genuine security and is breaking down catastophically before our very eyes. You HAVE to comprehend that your money sitting in an account is no longer legally yours. You have to force your brain to process and comprehend this, no matter how incomprehensible it may seem. IT IS OVER. This is Marxist hell. We have arrived.

This ruling and precedent will be used by every brokerage, every bank, every insurance company and every pension fund to deny you your money when the financial system finally collapses, be it on Monday, or be it two years from now.

DO YOU UNDERSTAND?

You have GOT to GET OUT.

Denny Johnson's picture
Denny Johnson
Status: Gold Member (Offline)
Joined: Aug 13 2008
Posts: 324
Jim H wrote

Jim H wrote:

The counterparty to the account, be it Morgan Stanley, or Fidelity, goes bust and your money is "vaporized".  Ann Barnhardt..........wrote about this threat yesterday following a very telling new legal decision;  

  http://barnhardt.biz/   (I can't seem to directly link to her Aug. 10, 3:33 pm piece)

In other words, all customer funds in the United States are now the legal property of JP Morgan, Goldman Sachs, BNYM, or whichever megabank is the counterparty on the loans the FCM or depository institution takes out in order to fund its mega-levered proprietary in-house trading desks.

I would also appreciate hearing some informed opinions about Ann Barnhardt's take on this.

tonepoem's picture
tonepoem
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Posts: 4
Time Horizon Questions

I'd like to hear scenarios based on how long a person has before retirement, 5,10,20 30 years.  Pensioners should be considered, both public and private sector (I think that there are differences in each circumstance)

Thanks

tonepoem

herewego's picture
herewego
Status: Bronze Member (Offline)
Joined: Aug 11 2010
Posts: 81
itsy-bitsy planets and tertiary wealth

What likelyhood is there of ANYTHING we do with our savings protecting their utility for long?

How far into the future do you hope to be able to preserve and use tertiary wealth?

Given the cracked nature of our monetary system (massive exponential growth on an itsy-bitsy finite planet), the global debt situation, our printing habit, the limitless corruption of players in the financial world and so on why are we talking about our tertiary wealth like it has a future?

I keep feeling, when engaged in discussions of financial instruments, that we are missing a crucial point somewhere. Yes, some of us have savings that currently reside in that staggering, corrupt financial world and wonder what to do with them. Yes, we can discuss this as needed and make our decisions. But what does that have to do with actual wealth, which comes from the functioning biosphere and stored resources of the planet and our intelligent, cooperative labor during our lifetimes here, and the labour of those who came before us?

This is not meant as criticism of this thread. It's a lovely invitation to get our questions addressed.  I'm just trying to get my head around what seems to be happening - money is gradually becoming untrustable. (Hey - didn't Chris say that might happen?)  Since this unstable exponential money has also been a justification for injustice, destruction and terror worldwide from before I was born, how much of our attention does it merit?  I can't yet make sense of talking about pension plans etc. when I know the system is mathematically (and morally) bankrupt already. 

Could this thread accurately be called "How Do I Preserve More of my Tertiary Wealth a Little Bit Longer?" In that case, should I cash out of a miner (Rubicon) before the market falls even more even though there will be a 15%-20% loss, or should I leave it there because when gold rises it will too?  I need the money for my homestead whenever reasonably possible. Primary all the way, Baby!  I'm not cut out for the market.

So nice to have a place to write what I really think, sound like a raving lunatic, and be able to hit "send' anyway!  Thanks Chris and all of you guests and posters.

I miss Arthur's comments too.

Cheers,

Susan

Jim H's picture
Jim H
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Posts: 1555
Herewego...

Silver is not tertiary wealth... it is not secondary wealth... it is primary wealth.  You can put as much of your current "wealth" in to Silver as you want.  You are setting up kind of false scenario here with your question.  I bring up Silver because it has so many more uses than Gold does.. 

Lnorris's picture
Lnorris
Status: Silver Member (Online)
Joined: Mar 28 2011
Posts: 103
401k/Ira safety

What Ann Barnhardt writes regarding the federal court of appeals decision makes the hair stand up on the back of my neck.  I feel like Alice falling dOwn the rabbit hole.  My normalcy bias says they can't possibly comtimue to play this Russian roulette with every citizens money. The other half of me wonders if I should just yank the money out of the retirement accounts I have and buy gold and silver, put the rest into preps. Some days this iis just overwhelming especially when so many seem blind. On the other hand one of 90 year old patients told me on friday that it might be time to take money out of the bank and bury it in the basement.  Time will tell how right she is.

herewego's picture
herewego
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Posts: 81
Jim H

Hi Jim, and thanks for your comment. I appreciate your time to keep things clear here.  

I am definitely an amatuer investor and it shows. I do understand gold and silver are considered part of the primary wealth store on the planet.  Because the market looks so wierdly unconnected to the kinds of material wealth that interest me - food, water, safety, land, good people and useful materials - and because it looks so scary - fraudulent, manipulated, unstable, unenforced regulations - I tend to think of the whole thing as not very real, even the gold or silver investments. I called that tertiary.  My bad.  Anyway, actually what I own are stocks in a mining company. They represent wealth, maybe, if many things that aren't looking so good go well.  If they don't, I own paper with numbers on it.  It doesn't seem like anything to count on, so I wonder if taking a loss now is better than risking even more of it disappearing.

Given another chance with that money, I'll build a second cabin instead.  Much nicer than pieces of paper.

Susan

jojokirk's picture
jojokirk
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Posts: 8
self directed ira

I would like to find out more on this topic. That is, is a lawyer needed to set it up, how to find suitable investments i.e. farms, medical facilities, and other transition to post-carbon economy investments. I want to invest like an "Accredited" investor.

FAlley's picture
FAlley
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Posts: 90
younger people

Advice for younger people, those just starting out, with next to nothing in assets to preserve but a lifetime to build on?

tonepoem's picture
tonepoem
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Joined: Jun 13 2008
Posts: 4
Time Horizon Questions

I'd like to hear scenarios based on how long a person has before retirement, 5,10,20 30 years.  Pensioners should be considered, both public and private sector (I think that there are differences in each circumstance)

Thanks

tonepoem

JAG's picture
JAG
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Joined: Oct 26 2008
Posts: 2490
Least Desirable Financial Assets

In your opinion, which financial assets are the most undesired or hated in the market today?

Thanks...Jeff

Doug's picture
Doug
Status: Diamond Member (Online)
Joined: Oct 1 2008
Posts: 2763
reporting requirements

What are the reporting requirements of the various financial entities, i.e., banks, brokerages, wealth managers, hedge funds, IRA custodians, vendors of PMs, etc.?  If things deteriorate as far as Barnhardt and her ilk predict, the ptb can make what is now legal, illegal.  We should probably think about when, if ever, we are willing to become "criminals" as defined by the system, to protect our wealth.  Understanding of what the reporting requirements of the various financial entities are is critical to our preparations in that regard.  I would like to read what the financial folks responding to these questions have to say.

tricky rick's picture
tricky rick
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Posts: 78
justice = legality???

Three questions (just a beginning):

1)  How about the 'special' tax that is put on capital gains of precious metal?    It could kill any gains on purchases.  I NEVER hear any financial advisor talking about that!

2)  If the stock market is robo-driven with front running and other forms of 'milk line crowding for profits', how can any advisor recommend investing in it?

3)  Inflation taxation...   IRS doesn't SEE inflation that the FED uses for repression.  It taxes on gain... whether imaginary or not.  Taxes go up and buying power goes down.   See #1

thc0655's picture
thc0655
Status: Platinum Member (Offline)
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Posts: 634
Taxes of self-directed IRA

One question: When I withdraw a Gold American Eagle coin from my self-directed IRA, I have to pay the 28% tax on its value the day I withdraw it.  Correct?  Does that mean I would not owe additional tax when I later sold that same coin for US dollars, even it if had appreciated in value in the intervening time?

Example: Let's say I bought a Gold Eagle for $1,200 dollars and deposited it into my self-directed IRA (which is held at a private depository).  Years later after I am older than 59-1/2 and don't have to pay the early withdrawal penalty, I withdraw that same Gold Eagle on a day when dealers are buying those coins for $2,000.  I am liable for a 28% tax on the $800 in appreciation.  Now, say 3 years later I actually do sell that Gold Eagle for $4,000 to a dealer.  Do I owe any additional tax since I already paid tax on the coin upon withdrawal from my IRA?

hucklejohn's picture
hucklejohn
Status: Gold Member (Offline)
Joined: Dec 13 2008
Posts: 281
How to hold shares of stocks

Most shares of stock are held in the "street name" of the broker.  Some advise holding shares of stock using the "Direct Registration System" to protect against failure of the broker as well as a failure of the financial system.  http://www.caci.com/investor/drs_faq.shtml  It would be good to hear from your experts on this. 

Denny Johnson's picture
Denny Johnson
Status: Gold Member (Offline)
Joined: Aug 13 2008
Posts: 324
hucklejohn wrote: Most shares

hucklejohn wrote:

Most shares of stock are held in the "street name" of the broker.  Some advise holding shares of stock using the "Direct Registration System" to protect against failure of the broker as well as a failure of the financial system.  http://www.caci.com/investor/drs_faq.shtml  It would be good to hear from your experts on this. 

X2

Guy Red's picture
Guy Red
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Posts: 2
move gold internationally

Recently posted in new group International Resettlement:

Can you advise on the best way to move gold internationally?  This is for small quantities of up to 100 0zs.

Is it best to sell and re-buy?  smuggle?  carry?  send?  

Bullion couriers suggested our 50 ozs were not worth them bothering with, better to carry.

Oliveoilguy's picture
Oliveoilguy
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Joined: Jun 29 2012
Posts: 401
Safety with Custodians

How safe is money with a major custodian like Schwab or Fidelity in a non-leveraged account.

RPwannabe's picture
RPwannabe
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Posts: 6
USD Devaluation

I know this is a little late, so if it doesn't make it into the podcast, please (anyone) respond on this message board.

In 2002 Bernanke gave a speech in which he spoke of five ways the Fed could fight against deflation. He has already implemented the first four policy measures.  Although he can expand on those measures, I am more concerned with his final option: devaluing the dollar.  
 

I'd like to know what a dollar devaluation of, let's say, 40% would look like in real terms.  For instance, if I have $100,000 cash in the bank and a $100,000 mortgage, and the dollar was devalued by 40% one day, do I now have $60,000 to pay the $100k mortgage?  Would we use the same bills we use now in everyday transactions, i.e., if I go shopping would I be paying for $12 worth of goods with a $20 bill?  Please cover how debt, everyday purchases, and the new value of the currency work together.  Thank you.

Tgrace's picture
Tgrace
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Posts: 1
Cashing out and paying the penalties

Facing the fraud that we are currently facing at all levels of government, wall street etc. when does cashing out of all your investments, paying the taxes and just holding on to whats left  seem a good financial move?

PaulaJane's picture
PaulaJane
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Posts: 2
Mortgage to buy silver, special situation

I am a farmer, partially disabled and my husband has terminal cancer and requires my constant care.  I have a small daughter and a son in the military.  All our debts are paid off and we have good insurance but I do not expect that to last in light of what we are all expecting.  Like most farmers I am cash poor.  Faced with the situation as it is I know I will need to hire help until my son returns and also cover my husband's medical bills out of pocket if worst comes to worst with the economy.  For that reason I am thinking of taking out a $125,000 30 year fixed rate loan and converting it into junk silver with the intent of letting it gain value and using it to help cover expences and increase our holding once the real estate prices drop significantly.  My thought is that if I put away 3 years worth of loan payments ($22,000) in cash and turn the rest into silver this is a fairly safe risk.  We have addition sources of income soon to come to fruition and already hold some precious metals but with my husband being ill I fear that it will not be enough to get us through.  To me it seems best to harvest the equity in our farm now while the interest rates are low and allow it to grow as silver increases in value vs having to take a higher interest rate loan out against property that has been devalued by an economic disaster.  Does my plan seem fairly safe as gambles go?

Oliveoilguy's picture
Oliveoilguy
Status: Gold Member (Offline)
Joined: Jun 29 2012
Posts: 401
Mortgage to buy silver, special situation

PaulaJane wrote:

I am a farmer, partially disabled and my husband has terminal cancer and requires my constant care.  I have a small daughter and a son in the military.  All our debts are paid off and we have good insurance but I do not expect that to last in light of what we are all expecting.  Like most farmers I am cash poor.  Faced with the situation as it is I know I will need to hire help until my son returns and also cover my husband's medical bills out of pocket if worst comes to worst with the economy.  For that reason I am thinking of taking out a $125,000 30 year fixed rate loan and converting it into junk silver with the intent of letting it gain value and using it to help cover expences and increase our holding once the real estate prices drop significantly.  My thought is that if I put away 3 years worth of loan payments ($22,000) in cash and turn the rest into silver this is a fairly safe risk.  We have addition sources of income soon to come to fruition and already hold some precious metals but with my husband being ill I fear that it will not be enough to get us through.  To me it seems best to harvest the equity in our farm now while the interest rates are low and allow it to grow as silver increases in value vs having to take a higher interest rate loan out against property that has been devalued by an economic disaster.  Does my plan seem fairly safe as gambles go?

Hi Paula Jane,

First,  I must say that my heart goes out to you. What a burden you have and what a courageous lady you are to deal with it head on.

I can't give you advice, but can just tell you what we have done.

We  have always felt that reducing our debt burden was the right thing to do. We knew that the crash of 08 was coming and we paid off our property to get debt free.  Having our property debt free gives us a real sense of security. 

Our land value has actually held steady on our farm over the last 6 years, so I have to question your assumption that farmland values will decline with an "economic disaster". 

I like both Land and Silver as hard assets, but if I have a choice between the two would choose land because it is less prone to price manipulation and harder to steal.

 
Oliveoilguy's picture
Oliveoilguy
Status: Gold Member (Offline)
Joined: Jun 29 2012
Posts: 401
Mortgage to buy silver, special situation

To me it seems best to harvest the equity in our farm now while the interest rates are low and allow it to grow as silver increases in value vs having to take a higher interest rate loan out against property that has been devalued by an economic disaster.  Does my plan seem fairly safe as gambles go?

PS.

I hope your question gets addressed directly on the next podcast. 

Travlin's picture
Travlin
Status: Diamond Member (Offline)
Joined: Apr 15 2010
Posts: 1322
That's a very risky plan

PaulaJane wrote:

To me it seems best to harvest the equity in our farm now while the interest rates are low and allow it to grow as silver increases in value vs having to take a higher interest rate loan out against property that has been devalued by an economic disaster.  Does my plan seem fairly safe as gambles go?

PaulaJane

I'm with Oliveoilguy.  That is a very risky plan.  Farmland is a much safer and stable asset.  I strongly advise against what you are thinking.

Travlin 

Wendy S. Delmater's picture
Wendy S. Delmater
Status: Diamond Member (Offline)
Joined: Dec 13 2009
Posts: 1584
oh dear, bad idea

PaulaJane, I third what OliveOilGuy and Travlin' said. Please do not go into debt on your residence to buy physical silver. You can't put that silver over your head to shelter yourself from the elements.

Our house is paid off, and we bought a little physical silver, but only after the homestead was secured from debt.

Wendy S. Delmater's picture
Wendy S. Delmater
Status: Diamond Member (Offline)
Joined: Dec 13 2009
Posts: 1584
Devaluation makes everyone poorer.

RPWannabe, my understanding is that historically the value of the money seems to go down but the value of the debt does not. Also, you would pay 40 percent more for the same amount of goods. So groceries costing $100 would now cost $140. Devaluation makes everyone poorer.

Doug's picture
Doug
Status: Diamond Member (Online)
Joined: Oct 1 2008
Posts: 2763
inflating away debt

I'll differ with Safewrite.  All money loses value in inflation.  That is the historically preferred method of defaulting on debt.  If you pay back with inflated dollars, you are paying back less in true value.  That's why the Bernank targets 2-3% inflation, debt will be paid back with less actual value.  It's also an incentive for people to invest their money - they want to try to earn more than they're losing with inflation.

kennyq's picture
kennyq
Status: Bronze Member (Offline)
Joined: Jul 30 2008
Posts: 80
Future deflation

I think that we will see a long deflation ahead of us when the credit bubble burst. I think that Nicole Foss made a very valid point. A call to buy gold or silver is too early.

taxidriver's picture
taxidriver
Status: Member (Offline)
Joined: Aug 24 2012
Posts: 7
Probably inflation before

Probably inflation before deflation. Either way, it's more reassuring for me to keep my savings in a time-tested market-recognized asset than fiat.

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