Not when a loaf of bread costs $50,000 You really need to read up more on how hyperinflation works mate. I assure you, any 'locked in' interest rate is immediately off the table. If you want to assume you're going to get away with screwing the banks out of their wealth in such a fashion, you're dreaming. Margin calls will happen across the board and you pay up immediately in dollars of the day, or you're forclosed upon. Don't try to bet against the banks. Then the chips are down, they'll ensure that you'll lose.
Unable to comprehend some of the hyperinflation stuff. If currencies devalue by 300% then everything costs 300% more but your FIAT currency is printed 300% times over. Everything stays the same just you count in bigger numbers. If a loaf of bread today costs $3 then tomorrow it costs $9 that doesn't matter if you are paid 3 times as much. Your stack is valued at $100 per oz whereas yesterday it was $33 an oz. Only numbers !
If prices are doubling every few days, don't expect your wages to be doing the same... Most people get yearly adjustments if that.
+1 Agree - Look very closely to you Mortgage agreement, there will be a "Pay on Demand" clause in there somewhere, its usually tucked away and Hidden in a lot of llegalese, but it will be there.
When you said 20-10% I did the math and figured that was about what we paid around the years you mentioned (although we have extended our house to twice it's size complete with a much bigger mortgage, doh!) So my next thought was, if we owed more than the value of the house, would my meager silver stack have a chance of doing a deal with the banks to buy out our mortgage. There are two parts to my silver stacking, one, paying off the mortgage if it goes atomic, but more importantly, having something when cash is nothing. I had been figuring that I would need a huge stack of silver to do the first, but if house prices drop and silver goes up, the point where they meet might not be quite so unattainable as i had thought. This first startedmaterialising a few days ago when on shtfplan.com there was a comment from "Manos" in Greece who said "Today my best friend got a phone call from a bank. His credit card is full with 3000 euros, unpaid for the last 14 months. So the bank clerk tried to make a bargain. He said to my friend that if he would go tommorow to the bank, the amount would drop to 1500 euros. My friend told him that "all i have is 200, take it or leave it". The answer was positive. Of course my friend has no money at all, and he was jokking with the bankster. But this shows the real condition of the banks liquidity. It's coming faster that you think people." Of course this is all purely speculation, I'm not going to "bank" on this scenario, but an interesting pipe dream.
+10000000000000 (hyperinflation ) I expect RE in many, but not all, places in Oz to be around 50% of what it is today when it hits bottom. I expect this to be quite a few years away yet. I predict that property tv shows popularity will plummet and they will be pulled. Thank god. Silver? I tend to think a mania will get it over 100. 200? Unlikely, but not impossible. Saying 500 will be low? Hah. I remember someone saying here once that he thinks most stackers will lose on their investment and I have no doubt its true.
So just to confirm, the inflation situation here isn't linked to the US inflation situation is it? Directly anyway. So why do people expect said inflation in aus? The country seems relatively stable does it not? PS. Not many people seem to realise but the US is going to allow its currency to be devalued. For inflation etc. The reason being is that their debts are in $US, so when their dollar devaules and their GDP is 10x in USD what is is now, their debts are (on paper) halfed. Increased exports etc. as a side benifit. Correct me if I'm wrong.
Findamentals are in place for silver over $500 easily. We aren't event in phase two and prices are climbing beyond our imagination 3 years ago. To have the price go up 1000-2000% in the coming years is feasible in my opinion. It will be great to pull this thread out of the time machine in 3 years!
I've got some price points in mind but it all depends on the circumstances at the time. I was originally planning to sell a third of my stack(100oz bars are first to go) at $35 but in light of the current situation (Japan / Lybia) I'm going to push that out to $40. Another third (1kg bars) will probably go just under the $50 mark. The rest (10/20oz bars, 1oz coins, 66's) I'll be happy to let run until things really heat up. I'll just keep accumulating florins and crowns and never sell them. I probably wont own any silver over $100 but again it depends on the circumstances at the time. Of course everyones situation is different though and the amount of money one has at risk will affect ones strategy. I've never been called smart or responsible so take what I say with a grain of salt! C
I would be setting your silver sell points against the asset you intend to move into (shares/ASX, house prices, gold). If your setting your sell points against fiat then a good target would be a sell point to get back your initial buy price, then your remaining metal has cost you nothing in fiat.
Don't buy into the propaganda. The US manufactures stacks loads of things other than weapons. Harley Davidson Motorcycles, Every single Bourbon, clothing (yes, still made in the USA), media etc etc.
lol the yanks also manufacture caterpillar heavy machinery for mining industries world wide, one town alone in illinois has over 20 thousand people working for cat.
He who owns the honey makes the rules. There will be a new world order based on the new appreciation of honey and it properties. We'll be rich!
That's part of my strategy also. The first third that I sell will give me my initial investment back. Once I've got that back I'll probably lighten up a little and enjoy the ride. I can't lose from there on. C
