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Thread: Stacking physical cash

  1. #101

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    The barkeep dilutes, and pours you one on the rocks. At this bar, all debts are paid in kind. You come back tomorrow with a new bottle and settle up your tab.

    Deflation is.... some string theory reach around wherein the barkeep is NOT able to (as usual) pre-dilute your new bottle? Huh? Is it that you're liquor store source (bank) is no longer diluting in lock-step?

    Aw hell, I'm gonna go home and break out the bourbon and see if I can figgur this out.

  2. #102

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    Quote Originally Posted by Atlas Shrugged View Post
    But in your example, the Scotch gets distilled when debt is defaulted on or paid back. It becomes better scotch, worth more.
    Are you sure? Seems to me, it just gets put back in the bottle. Let's say it was 80 proof when it was lent to you, and the bottle has been watered down to 76 by the time you pay it all back. You are paying with the Scotch de jure. How does that change the bottle's concentration?

    You and I might be able to use the stuff, but to the Fed, the FRN is trash, stinking up the place. It invents all it needs! The Fed's biggest problem is getting rid of the FRN, to kill inflation. That's what the income tax is. That doesn't go into the bottle, it goes straight to /dev/null, and out of the economy.

    It is a very hard subject because it involves confidence and imagination. This is not a math problem, it is a psychological /sentiment problem. Yes, math is involved and certainly impacts the numbers, but it really comes down to belief.
    I'm with you 100%. The only thing the FRN has going for it is the confidence that it represents value. That's why the PTB can manipulate it so well, it can be anything they want it to be!

    But my question again is about that pesky deflation. To me, it's like asking TPTB to work for YOU instead of the other way around. Why do so many believe that this will ever happen?

    .

  3. #103

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    My 2c on mattress cash

    1) Yes cash gets devalued over time.
    2) How happy would you be if you pulled most of your savings out in FRNs because of fear of Cyprus right now and missed the gold drop?
    3) You are helping sock it to the system if you do pull your cash (or go to gold) and go "off book." Cash balances in a bank are insane right now.
    4) Sometimes doing nothing is the right answer. I dont suspect we have all of the information right now.
    5) Think about all of those people lined up outside of the bank trying to get their 300 euros or whatever.
    6) In a bank run cash crunch, that new mercedes on the lot that says $100K is not $100K anymore. No one has cash, its whatever they can sell it for from a liquidity point of view. What are people in Cyprus selling their goods for? Answer: Anything they can get. They are even selling their gold instead of dropping the euro and creating a smaller but backed by bullion currency.

    Prob sharing too much info, but: While I am a long term gold bug and fan, I did sell everything a day before the election (because I didn't know who was going to win and what that would do to gold)

    When I saw Cyprus get hosed, I decided money in the bank is not really money in the bank.

    I am now just standing down and waiting to see what happens next. Everyone could call the bubble in Bitcoin. People were joking about it on ZH. And sure enough it happened.

    Do we not think this will happen with the S&P? Or is "it is different this time(tm)" If the market drops 40% or whatever, what will that mean for you? For your 401k or IRA? For gold? Your job? How will it affect you personally?
    -- The golden rule: He who has the gold, rules

  4. #104

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    Quote Originally Posted by Karlus View Post

    I am now just standing down and waiting to see what happens next. Everyone could call the bubble in Bitcoin. People were joking about it on ZH. And sure enough it happened.
    Which one did they call? The time it hit 17FRN then dropped, or the time it hit 250FRN then dropped. Or the time it went from 0 to 17FRN, and the time it went from 1 to 250FRN?

    I hear a lot of hollerin', but don't know of anyone who has called Bitcoin any better than they've called silver. But of course, here "everyone knows".

    .
    Last edited by AnotherDave; 04-14-2013 at 11:59 AM.

  5. #105

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    Quote Originally Posted by AnotherDave View Post
    Which one did they call? The time it hit 17FRN then dropped, or the time it hit 250FRN then dropped. Or the time it went from 0 to 17FRN, and the time it went from 1 to 250FRN?

    I hear a lot of hollerin', but don't know of anyone who has called Bitcoin any better than they've called silver. But of course, here "everyone knows".

    .
    People started yelling when it went from 40 to 100. When it got past 150 is when the "lookout below" articles/forum posts started in earnest.

    When it hit 200 on Tues, I don't think anyone thought it was serious anymore.

    Mt. Gox bringing their site down was icing on the cake. It's cool when the only major exchange decides to shutdown.
    -- The golden rule: He who has the gold, rules

  6. #106

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    Quote Originally Posted by Karlus View Post
    People started yelling when it went from 40 to 100. When it got past 150 is when the "lookout below" articles/forum posts started in earnest.

    When it hit 200 on Tues, I don't think anyone thought it was serious anymore.

    Mt. Gox bringing their site down was icing on the cake. It's cool when the only major exchange decides to shutdown.
    . . . and they keep going back to it. Go figure!

    Trading is just under 100. So, what's the call? Up, down, sideways? I don't think "everyone knows" now any better than "everyone knows" what was going to happen last week or last year.

    .

  7. #107

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    May want to think about getting real physical cash. Things are getting real fast.

  8. #108

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    Quote Originally Posted by Atlas Shrugged View Post
    May want to think about getting real physical cash. Things are getting real fast.
    Yeah....kinda thought something like this was going to happen. I think it may be time to "turtle up" some.

    Lots of pain to be doled out soon.

    My thoughts are with those having big losses this morning and what that means in their lives.
    -- The golden rule: He who has the gold, rules

  9. #109

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    Bank run time?

  10. #110

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    Quote Originally Posted by wgadget View Post
    Bank run time?
    Not sure, but im pretty much all out at this point. Long ATM lines and $300 daily limits are what have me worried.

    Just not really predictable at this point.

    I do think everyone and their brother will be running to the USD when TSHTF.

    Question is when it hits, what to buy with physical cash??
    -- The golden rule: He who has the gold, rules

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