Preparedness for when

Frugalsod

GreyQueen wrote: »

How does the saying have it; the markets can remain irrational longer that you can remain solvent?

I agree but I am not invested in any of the markets so really do not have anything to lose when it pops. It could be another couple of years before it pops so what to do in the meantime? In 2007 I thought it would be 2017. Not much has changed my opinion that it could be as late as that. I might be wrong but I am hopping it is as late as possible as it will make my prepping easier to do.

I do know people who are fortunate enough to be living off their modest investments, so they are at risk everywhere.

GreyQueen wrote: »

Looking at the history of the well-named 'dismal science' of economics, I can see that none of them, whatever their affiliation, have a clue how to get out of this without blood on the streets. And that has been the case for decades, not just in the past 7 years.

Well all three parties have basically used the same economic model for the last 20 years and the differences between the parties were tissue paper thin. The big problem is that they all ignored fiscal policy since 1979, and only regarded it as a way to buy votes, and not actually run the country.

GreyQueen wrote: »

There is a lot of financialisation frothing on the top of the world's economies without any substance behind it. Why produce goods and services, how gauche is that when you could be developing some nice CDS to bamboozle the investors? Charles Ponzi would be weeping with joy should he be alive to see it. So much bubble-fuelled hot money trying to purchase wealth-producing assets and instruments, and ramping everything higher before the fall.

Ponzi would be jealous. Though like the bankers right now he never expected it to fail.

GreyQueen wrote: »

Trouble is with bubbles is they pop, and usually with minimal or no warning, then the investors (which includes all of us who hold pensions and other financial products) are left in the brown stuff.

Yes and it is going to be very messy when it does implode. I have given up on a pension because it looks like retirement ages will rise again and most pension funds have not had enough contributions since the mid 1980's. To be able to retire on a two thirds of salary pension you would need to be paying around 35% of your salary right now, because of the low interest rates and investment returns, and I know that no one is doing that.

GreyQueen wrote: »

Tangibles, like sturdy houses which you can afford to live in, will retain utility-value, even if their money-value fluctuates wildly. Likewise some portables, like the precious metals, will hold some money-value; they've held some money-value for millennia already and I can't see that changing in the future.

I agree to an extent. Even I do not expect gold or silver to ever become worthless. It might get as low as $300 an ounce again but that would be the bottom. That is still too impractical for day to day use. Personally for most of us investing in home improvements and your own skills and tools is a far better investment. Things that cut your cost of living. Even stocking up on food is a better option, because it has some daily use.

GreyQueen wrote: »

If it goes t*ts up, would you rather have a krugerrand in your pocket or an armful of designer clothes which lost most of their money-value the moment you bought them? I own neither, but if I were to make a choice, I'd choose the round shiny golden thing, and let it lie quietly until needed, even if the need was a generation or two hence.

Very long term all gold does is maintain your real spending power. It is not an investment. It should be viewed as a hedge against inflation. Buy it when deflation drives its price down.

Also the reason so many people tout gold is because they are all still fearing inflation that the Fed and its 5 Trillion of QE has failed to ignite. Also many are gold dealers, so are massively conflicted with their own interests.

GreyQueen

If I ever see gold at $300 an ounce (£197.74 at the exhange rate this minute) I shall be buying some as a hedge, believe me. Assuming that anyone will offer it for sale at such a low price, rather than wait for the markets to bring it higher.

By sides, in the above post, I meant schools of economic thought (Keynesian vs Austrian), rather than UK political parties. The late, great M T (barf) once described New Labour as her greatest achievement, and I consider the Libbies to be a bunch of hoors who'll shack up with whomever it suits them on the day, and switch beds without a backward glance.

But yes, when reading anything, whether the Financial Times or Zero Hedge, or anything inbetween, one should always think Why I am I being told this at all? Why am I being told this right now? Who profits?

Before arising from my bed this morn, I was thinking about utitlity value vs financial value. This computer has a resale value of nil. It perhaps has a negative financial value, even. In 2002 it had a price ticket, including the software, and peripherals, of £1.5k. It now is financially worthless.

But it's utility is now in excess of the utility it had when new, thanks to my Computer Wizard. It has twice as much RAM and an Ethernet card and is whizzing on the web as opposed to labouriously dialling on with the modem. It mostly goes from one year's end to another without requiring any attention whatsoever, and provides me with a lot of entertainment as well as serving as an administrative tool. Heck, given the price of stamps, using it for email and managing utility accounts online is saving me several ££ per annum in postage alone.

Almost everything you buy in this life will follow a similar trajectory; down to worthlessness or even negative financial value. It's enough to put you off shopping for life, isn't it? :rotfl:

cheeseontoastwithham

Frugalsod wrote: »

You are probably aware that the poor are far more charitable than the rich. As a percentage of income the poor are much more generous so it does make sense in a way.

That is quite a generalisation!!

mardatha

I think it has been proved often, that poor areas or parts of the country give per head, more to charity to the more well off.

mardatha

If this constant conveyor belt of storms and huge winds/rain/sleet/snow doesn't stop then I'm going to go mad. Cabin fever in here and only one of us is going to emerge alive and well come spring!!

1Tonsil

ivyleaf wrote: »

Just to point out that the Greeks celebrate Christmas later than we do, as they have the Greek Orthodox church. This year their Christmas was on 7th January.

Actually they celebrate it at the same time as everywhere else. The shops close early on Christmas eve and don't open again till after the holidays...this year they reopened on the following Monday. I went to the mainland...free mulled wine, carol singers, Christmas village, Elves and santa....the full works.

The Greeks celebrate Epiphany on 6th January, then twelfth night, when Saint Vassilis brings the children presents and everyone cuts a cake with a coin in it. Many children get a gift on Christmas morning as well and some get a gift on January 1st. I can understand confusion...:rotfl:

1Tonsil

mardatha wrote: »

If this constant conveyor belt of storms and huge winds/rain/sleet/snow doesn't stop then I'm going to go mad. Cabin fever in here and only one of us is going to emerge alive and well come spring!!

LOL I know just how you feel....:rotfl:

Softstuff

mardatha wrote: »

If this constant conveyor belt of storms and huge winds/rain/sleet/snow doesn't stop then I'm going to go mad. Cabin fever in here and only one of us is going to emerge alive and well come spring!!

If the bookies were taking bets, mine wouldn't be on RV.

womble_lancs

GreyQueen wrote: »

:mad: I was rather cross the other day at getting door-stepped by chuggers, the Red Cross, this time. I know they're mostly students, that they get given a 'patch' and left to get on with it, but I do feel that this borders on unacceptable behaviour on behalf of charities.

I agree. I once had a chugger come to my door and when I told him that I already make regular donations to three charities and don't have the resources to donate to all the worthy causes, he verbally attacked me, accusing me of not caring about children and said that Mrs so-and-so up the road donates to six different charities so he was sure I could manage it. I sent him away with a flea in his ear. I now have a very blunt sign on my door, saying that I will not deal with hawkers, canvassers, salesmen, charity representatives and 'god botherers'. It seems to have done the trick.

maryb

1Tonsil wrote: »

Actually they celebrate it at the same time as everywhere else. The shops close early on Christmas eve and don't open again till after the holidays...this year they reopened on the following Monday. I went to the mainland...free mulled wine, carol singers, Christmas village, Elves and santa....the full works.

The Greeks celebrate Epiphany on 6th January, then twelfth night, when Saint Vassilis brings the children presents and everyone cuts a cake with a coin in it. Many children get a gift on Christmas morning as well and some get a gift on January 1st. I can understand confusion...:rotfl:

There isn't a single Orthodox Church - some of the Orthodox churches still follow the Julian calendar for everything, some follow the Gregorian calendar and some are different again from all the others