Survey Shows 40% Don't Have More than $500 In Savings

[ak474u]

This is one of my first posts - So pardon me if Ive wandered into a private discussion - but I thought the site was interesting and I could add something to the conversation.

Here is a chart that shows the value of gold from 1971 to 2004 ($45 per ounce to $700)



Here is a chart that shows the value of gold over the last 5 years ($800 per ounce to over $1700 per ounce):



This means that as they print/digitize dollars...they make all the dollars in existence worthless because they make more of them. If something is in scarce supply, it is more expensive - but when you have too much of something, it's value is diminished.

Rich guys, who have a lot of wealth, look to preserve that wealth in times of instability. They stop investing so much and start buying and holding actual Gold (and silver). There is only so much Gold above ground, so if really rich guys are buying it up - and there is a limited supply of it - then it is getting more expensive.

To give you an analogy - in the 1800's you could walk into any suit maker in America and have them make you a tailored suit. You could pay for that suit with one $20 gold piece. Today 200(+) years later you can walk into any suit maker in America, have them make you a tailored suit, and you could pay for that suit with that SAME $20 gold piece.

...the difference isn't that things have gotten more expensive...it is that we have diminished the value of the dollar so much - that instead of it costing $20 paper dollars to buy a tailored suit...it now costs $1700 paper dollars!

Don't worry about saving dollars, the value is dropping daily. Store up items you need that you can buy today....because in a week, a month, a year...those things will cost MORE...and the dollars you saved will be worth less than they are today.

And don't buy that thing about interest compounding - there isn't a SINGLE investment you can buy that will generate enough interest to keep pace with the rate of inflation (the difference between the cost of what you bought a year ago versus what it would cost you to buy today).

The value of the thing(s) you bought will be the same - or possibly more - if you bought the right things.

Don't get me wrong, this isn't meant to say "eat drink and be merry for tomorrow we die"...as long as cash exists, you will need some for basic transactions...just don't think your savings are working for you right now. Some banks have begun the phase of economic meltdown where you pay them interest to preserve and protect your deposits...

Good post, I've always used the analogy of the 1964 mustang, in 64' you could buy one with 2500 silver dollars, and today, you can buy one of the loaded ones for about the same. Of course, back then a teenager could work part time and pay for one, today, not so much.

[White Tiger]

Thanks AK47u - that also is a good analogy. I forgot to mention the impact folks feel each time they telegraph the printing of dollars...the cost of all goods jumps to account for the inflation those extra dollars just created.

Therefore any money you have in the bank gets diminished - but the telegraph from the fed to producers is - "get ready to raise your prices by this much"....meaning you, the consumer, can't get ahead of this. It's why you feel like you work harder and harder - but have less to show for it...

...it's because, quite literally...you have less to show for it...unless you buy more (food, water, etc.) of what you need, you will be stressed and stretched to make ends meet.

[Sniper-T]

This is one of my first posts - So pardon me if Ive wandered into a private discussion - but I thought the site was interesting and I could add something to the conversation....

The only 'Private' conversations around here take place via pm's or in closed rooms. Everything else is fair game. Great first(ish) post, and Welcome to the forum.

[White Tiger]

The only 'Private' conversations around here take place via pm's or in closed rooms. Everything else is fair game. Great first(ish) post, and Welcome to the forum.

Thanks Sniper T - just trying to be a good neighbor!

Incidentally - I found this site while doing a Tapatalk search - glad I did, interesting forum!

[realist]

Regarding money in the bank I get roughly .000005 % interest on my savings. So I prefer cash over the general bank account. I agree on having gold and silver as a hedge. I also believe like the rest that having good preps will also be a good inflation hedge.

[ladyhk13]

If you look at a small community bank's checking account a lot of times they will pay you interest if you do a direct deposit and have 10 debit transactions per month. That's what we do. They will do this up to $50,000.00 and then the interest rate drops. We started a couple of years ago making more than 4% but it has dropped (of course when they are lending money for almost nothing) down to I think 1.55% which sucks but it's better than most especially as your balance rises.
Stay away from the large national banks if you want to earn any interest on your money.

[Gunfixr]

We have exactly $5 in our savings account.
Got the 5, now I just need to get the two 0s.

However, there are no credit cards, and no loans other than the house. The vehicles are owned.
We don't get the paper, or tv. There's internet, and Netflix ($8 a month), and the cell phones, no house phone.

All we make pays the bills, puts gas in the vehicles, food in the cupboard, and gets preps when we can, which is most of the time, just in small increments. Lately, I've been selling off stuff, mostly guns and some gear, ammo, that had been collected over the years, to up the preps.
Been feelin' "antsy".

[White Tiger]

We have exactly $5 in our savings account.
Got the 5, now I just need to get the two 0s.

However, there are no credit cards, and no loans other than the house. The vehicles are owned.
We don't get the paper, or tv. There's internet, and Netflix ($8 a month), and the cell phones, no house phone.

All we make pays the bills, puts gas in the vehicles, food in the cupboard, and gets preps when we can, which is most of the time, just in small increments. Lately, I've been selling off stuff, mostly guns and some gear, ammo, that had been collected over the years, to up the preps.
Been feelin' "antsy".

You should get the food you need, so to that end...The idea of trading ammo/weapons for Prepps is a good one...but don't get too carried away...in a real SHTF event, those items will INCREASE in value!

Keep up the good work, no matter the outcome of the election, we're going to face an economic cliff that will take a lot out of our economy just to slow it down. The immediate impact of slowing/stopping all that spending will create a short term condition WORSE than we're experiencing - but it has to be done! The only option is to keep printing until EVERYONE stops buying dollars...which is beginning to happen and would actually be impossible to correct...