http://www.cnbc.com/id/38313367/Position_for_Rare_Market_Catalyst_Says_Trader_Vic

After the hyperinflation hits (and make no bones about it, it will happen), there will be a devaluation of the dollar between 3 to 1, possibly 5 to 1 and maybe but I doubt it 10 to 1. This will occur after the banks have reopened after their week long (really 10 day) government mandated closure and consolidation. Of the 8,000 plus banks that are open today less than 10 will survive this closure.

The big question is what will happen to peoples debt? Will it be devalued as well? No one knows, some economists say no, your savings will be wiped out (in a 10 to 1 devaluation your 10,000 in the bank will now be 1,000), prices will remain the same and you will be required to pay off the debt you have at the original amount but with the new devalued currency. Your wages will be reduced but you payments would remain the same.

As you can imagine people will be devastated, there will be demonstrations, turning to riots which will lead to looting and eventually Martial Law and the suspension of the Continuation. Once that occurs all bets are off and things really begin to degrade.

next month? 3 months? 1 yr? WHEN? (I realize nobody really knows, but an 'edu-macated' guess?
BTW this is a good reason to be changing those green pieces of paper in for silver, gold and copper-jacketed lead.

Sarge wrote:next month? 3 months? 1 yr? WHEN? (I realize nobody really knows, but an 'edu-macated' guess?
BTW this is a good reason to be changing those green pieces of paper in for silver, gold and copper-jacketed lead.

Sarge I can tell you there is a plan in place for the Fed to quietly infuse 5 Trillion (yes Trillion with a "T") dollars into the economy very soon, this will keep the economy going through the 2012 election cycle. After that look for serious hyperinflation followed by a currency collapse and a deveulation.

Sorry that is the best I can offer in any kind of time line.

Since we're reasonably guessing here, don't be suprised if there is an 'economic disaster' in October. It could be the closing of the Persian Gulf, a crash on Wall Street or other equally disqueting event. My gut says November elections may somehow be postponed or evencancelled. I'm right on the tiny edge of my personal 'line in the sand.' I hope I'm wrong but time will tell...

The elections will not be postponed. if they were, that would be a sign that even the sheep would not be able to ignore- a sign that we are under a dictatorship, a sign that the almighty federal government is weak and impotent, a sign that big government and socialism have failed even in the land of the 'free'. Many things can and will happen to affect and afflict the nation as a whole- but the elections will go forward. The crooked politicians will lie and twist the truth and manipulate the voters into voting for their lies- but the elections will go on as scheduled.

at this point, I have no clue what will happen. I do know that I am trying very hard to find a balance and prepare. We already know that our retirement will be wiped out...it's one of the reasons that we are trying hard to change our life style and be as self relient as possible. It's not just because we see some terrible crash coming, some war or even because of an ice storm. Our country is in termoil, we don't even know if it will be standing in 10 years time when it's the normal time for us to retire. We do know that good old fashioned hard work and relying on ourselves will pull us through most problems.
Hopefully we won't have to deal with dodging bombs, gangs and government "help" along the way.
Hyperinflation with a devaluation of the currency is something that very few people will be able to handle well. We certainly wouldn't be able to and my husband has a fairly secure job and makes good money. When you have a morgage, it's gotta be paid. When you owe taxes, they gotta be paid. We were not lucky enough to be able to pay off our morgage and we will go down and be homeless if something like a devaluation happens. We'd eat just fine, but whenthey came for the house, we'll be homeless like anyone else.

While we would be in a similar situation HP I would not give up the house. They would have to take it by force and it wouldn't be pretty. It's something I have thought about and figure I would see it coming so would be able to get most of our important stuff out and get my dogs out then it'd be suit up for the show. I will not give up our house and still pay for that big white one on the east coast. They like me will have to make a decision as to how much is it worth. For me anyhow if we lost the house I'd have to go to the city which having lived my whole life in a rural environment would be pure hell, one which I am not not willing submit to. This is my line in the sand.

Normally people think of hyperinflation as something that makes money worthless and they fear they won't be able to pay off their homes, their cars, whatever. As in all things, there is good and bad.

If your mortgage is set interest, hyperinflation may be a good thing. You pay your current mortgage with inflated dollars. The amount will remain constant, butt he money will be easier to get, after all it is pretty worthless.

If you are wise now, your buying things which will later be worth lots of money. Remember during the great depression in Germany after WWI, you had to have a whole wheel barrow of money to buy a loaf of bread. If you made and sold two loaves of bread, you could probably pay your home off. (Yes it was actually done during those times)

Part of survival is learning how to make the situations work for you. Bring out the good and offset the bad as much as possible. Some of that means being prepared now and using your preparations work for you to the best after things go bad.

While yes you are correct, the thing I'm feeling is that the feral gov't doesn't want the general populace owning a home. They want to control the living space for everyone so they can dictate who goes where and if you don't drop to your knees when ordered they can take away your roof which for those with a family would be a big deal and force them to comply. So by making it almost impossible to either get a home with their tight credit requirement or trashing the dollar combined with destroying the employment base they can then foreclose on the homes of everyone but the rich then turn around and allow you to use the home because their such nice people and all you have to do is swear yourself, family and all future generations into indentured servitude for a roof. They then have their slave labor force to do their bidding.

I could wade into what is going on financially, and why, I am afraid details would breech contractual obligations I have yet for several years. Lets say it is not always all the evil government forcing things. Sometimes it's just plain ineptness by people who think they know things and really don't.

Put the top 100 economists into a room and give them all the information available and you will come out with at least 90 different answers of why and what is needed to fix it. That's because unfortunately, institutional bias as well as personal ones flavor what they think information means. It is the nature of the beast, because as much as some would like you to think so, it's not really a hard science, it is as much art as science. If it was a hard science, you would have more agreement on it.

Some of the problems are by people themselves, they buy and spend as much as they can. They bought into the easy credit for years, buy now pay later on easy payment plans, which while fully employed was no problem, but then emergencies, personal family illness, job loss, fluctuations in economy, etc changes circumstances, well those easy payments became not so easy. Look at the personal bankruptcies rates right now, and expect them to grow. Some was because they bought too much home, with nothing or little down, had to have those new cars, vacations, etc. It was foolish and not something wise people fell into. That caused some of the problem, but not all of course.

Government playing with tax legislation, pushing for their pet projects and playing off personal donations to their campaign funds and special perks for certain penalties against competitors, and cuts for themselves of course also made a big problem for all of us.

The Global warming scam also made a big problem. Science did not support the concept of man made global warming, but companies usually owned by friends of those pushing the scheme sure made a lot of money out of it and the media pushed it for their own profits and personal agenda.

Political scheming for social agenda also made a big dent in the markets and in out ability to maintain standards of living.

Unions also played the part also. I hear many blame evil corporations, but few talk about he back door deals, criminal theft of pension funds, kick backs etc, done by the unions.

Loss of manufacturing base here in US also caused a lot of our problems. That was done for several reasons, many of them stupid. Not only financially, but also for national security reasons.

Banking institutions also made errors, and not because of deregulation, but because the regulations that were in place were not enforced. If they had been, Fannie and Freddie would have been investigated and the people who lead them and regulated them would all have been in jail.

Theft of the Social Security funds by the government by taking the incoming money not spend directly on pay outs was taken and replaced with Treasury Bonds I. E. IOU's by the US taxpayers and spend on the general fund and for use in controlling the deficit, which was in my mind criminal. There is no Social security funds now, just those IOU's.

It would take tons of pages to figure it all out, but it's out there if you wish to dig for it. Problem is, most average people can't figure it out, which is not so surprising, when most of the supposed specialists can't either. I know, I worked with many of them for years.

The administration, like those form before are playing with toys they don't understand, and are so complex if you mess with one thing you end up causing others to be harmed. They are children playing with a tiger tails and have no idea what they are about to cause.

The interest rates set by Greenspan was done to do two main things, stop inflation and to keep the interest on the national debt low to effect the amount of deficit. It was never meant for a long term solution and the rates should have been pushed up years ago in order to sop up the money supply. It would have caused a short term hardship, but in the end would have been better then seeing it turn to the emergency we are currently facing. The politicians had no guts to allow that short term hardship, so we now face what we face.

Greed also has it's place in the problems we are facing, not only political and business leaders greed, but that of the people who scream that the government must do more for them, even when it could not be logically done.

Still, even in the worst of financial times and civil unrest, there are those who have always managed to make it through and even prosper. It takes guts, brains and some planning, but can be done by even the average person if they are prudent. I just want people to start being prudent.

It was suggested in the 1980's during extreme financial hardships, it's best to be either totally out of debt or be totally maxed out in your credit. If your totally our o0f debt, great, if your not, if you used the credit to prepare yourself for the hardship, with goods which will bring in cash later and security, you can do 1one of two things, either declare bankruptcy, or use the goods you have to trade for inflated dollars and pay off your bills with those near worthless dollars. Not my ideas, but of someone much brighter in economics then I will ever be.

Anyway, just something to think about.

BTW, I always suggest to people, prepare for the worst, but hedge your bet by planning also in case things hold together. That way your covered no matter what happens.