80Views47Replies

Author Options:

A little food and money set aside Answered

Considering that we are overdue for a worldwide [http://en.wikipedia.org/wiki/Deflation_(economics) deflationary] period, it would be wise to have a little food and money set aside, "in case of a rainy day."

FYI.

Comments

The forums are retiring in 2021 and are now closed for new topics and comments.
0
jtobako
jtobako

13 years ago

Deflation assumes that the money has a material backing-that hasn't been the case for a long time. The only thing that makes money work is the belief that it works-there isn't any 'thing' backing it (like gold or silver). Deflation requires that the money supply DECREASES, not something that will happen to money that has no material backing it (something that would limit the amount available because it got used up or ran out).

0
royalestel
royalestel

Reply 13 years ago

Did you read the wikipedia link?

0
jtobako
jtobako

Reply 13 years ago

Did you understand it? It says that money will become more valuable because there will be less of it-a reason to save money, not spend it on food that will be more expensive now than later : ) Or are you trying to say that another Great Depression is on the way? In which case, the basis for current money (the stock market, ect) would have to collapse, causing massive INflation (such as Zimbabwe is having). So you spend your money NOW in order to have valuable goods later.

0
royalestel
royalestel

Reply 13 years ago

Oh yes, I understand it. The money's for short term needs. Rapid deflation is somewhere around 10%, which is still low enough for money to be useful. The food's for longer term needs. And, yes, we're overdue for a Great Depression. Beats me when armageddon is, though. You must admit that it is wise counsel to have a little food and money set aside in case of a rainy day, though, right?

0
jtobako
jtobako

Reply 13 years ago

You don't get it. In any deflation, money becomes more valuable. However, what you are talking about is years of shrinking economy. This doesn't mean that your money is worth less, it means that so many people have lost their jobs that prices have to come down so that businesses can make some money instead of going broke holding on to stock that no one can buy because they don't have the money. That means you don't have a job, or, if you do, you are taking pay cuts to keep it. But yes, you should try to have a financial cushion for personal hard times. Not always possible, but nice.

0
royalestel
royalestel

Reply 13 years ago

So are you arguing for the sake of it or what?

0
jtobako
jtobako

Reply 13 years ago

You are the one saying "the sky is falling" and giving advice on how to survive an earthquake.

0
jtobako
jtobako

Reply 13 years ago

All the views on that page assume a currency BACKED BY GOLD. Since this is no longer true, different rules apply.

0
royalestel
royalestel

Reply 13 years ago

I honestly don't think it matters. Gold has it's value basically for the same reason that money does: confidence.

Anyway, Japan's had deflation for over a decade and they don't have a backed currency.
http://web.mit.edu/krugman/www/deflator.html

0
jtobako
jtobako

Reply 13 years ago

No, gold currency supports deflation because people and products increase faster than the supply of gold, paper money is 'printed' at will by the government. Where gold supply is limited, the willingness of government to print more money is not. As far as Japan's deflation, I suspect that most of that is the artificial price support for property prices and refusal to make a call on bad loans.

0
royalestel
royalestel

Reply 13 years ago

You wrote: Deflation assumes that the money has a material backing and Deflation requires that the money supply DECREASES as we can see from empirical evidence, that is not necessarily the case.

You've attacked me as not having my facts straight, implied I have been fearmongering, and basically demanded that I prophecy in order to justify my original post.

Perhaps, perhaps, you have stereotyped me.

I'll reiterate. It would be wise to have a little food and money set aside in case of a rainy day, and more especially considering that we are overdue for a worldwide deflationary period.

to Russia with love,

Royal

0
royalestel
royalestel

Reply 13 years ago

Actually, I'm doing neither. I'm offering something much more modest and wise, that you seem to have taken offense to.

0
jtobako
jtobako

Reply 13 years ago

Then what does the first half of the sentence contribute? Put numbers on the rest (a week? Month? Year?) and let's see how realistic you are being.

0
royalestel
royalestel

Reply 13 years ago

You want me to prophesy?

0
royalestel
royalestel

Reply 13 years ago

So just to be clear. You are saying that deflation couldn't happen if the currency is not backed by a gold standard or other hard asset and that having a little food and money set aside would do you no good should a deflationary period occur anyway. Is that right?

0
jtobako
jtobako

Reply 13 years ago

I'm saying that your advice is inconsistent and contradictory. Pick a side and stick with it.

0
royalestel
royalestel

Reply 13 years ago

I'm still trying to figure out why you're arguing. What in the world is so drastic about putting aside a little food and money in case of economic fallout?

0
jtobako
jtobako

Reply 13 years ago

Because of the way you put it. I hate fearmongering. If you are going to try to scare people, at least get your facts strait.

0
royalestel
royalestel

Reply 13 years ago

You think writing of an overdue worldwide deflationary period is fearmongering? Well, you've misjudged my motives.

0
jtobako
jtobako

Reply 13 years ago

PS: I cut my teeth on these arguments with my dad in the 70's-he's still waiting and preparing for armageddon, it's just a new version every few years.

0
mikesty
mikesty

13 years ago

Well, uh, why would you set money aside if there was a deflationary period? How about stocking material goods aside? :P I think there's a potential for things to go down the tubes, but I'm not an economic master and I really can't say. All I know is, I'm screwed when it comes to getting a house.

0
royalestel
royalestel

Reply 13 years ago

A little food=immediately useful material goods.

I'm positive you could buy a trailer, and since the 90's they've been very well built.

0
SacTownSue
SacTownSue

Reply 13 years ago

Well if I can buy a house I think anyone can. You just have to be smarter than the average bear. There are programs for first time buyers. I had to lower my standards and I can't afford to do the work on the house that it needs... Things didn't turn out the way I thought they would. I'm not sure if I made the right decision or not. Depends on what kind of day I'm having. Long ago (1980-81) and far away when I was living and working in SanJose, CA there was an article in the paper quoting some Vietnamese "boat people" as saying, "it doesn't take a lot of money, it just takes a lot of people" to buy a house. That's one way to do it. 10-20 people in a 4 bedroom house.

0
mikesty
mikesty

Reply 13 years ago

The thing is, when it comes time for me to buy a house in a few years, it will be more expensive than ever.

0
trebuchet03
trebuchet03

Reply 13 years ago

You laugh, but I'm protected!

0
Weissensteinburg
Weissensteinburg

Reply 13 years ago

There should definitely be a station for tin foil hats at the ible show and tell..

0
trebuchet03
trebuchet03

Reply 13 years ago

There was a tin foil hat table not far from the instructables booth at Maker Faire :D

0
Weissensteinburg
Weissensteinburg

Reply 13 years ago

How does that maker fair work? do people just show off what they do? sell stuff? both?

0
royalestel
royalestel

Reply 13 years ago

Yeah, and duct tape. Lots of duct tape.

0
royalestel
royalestel

Reply 13 years ago

Silly man. You use a colander!

0
Weissensteinburg
Weissensteinburg

Reply 13 years ago

but they have holes. we have no idea what kind of rays they're sending down here.

0
jtobako
jtobako

Reply 13 years ago

Orbital Mind Control Lasers or Nefarious Ambient Electromagnetic Waves? Just so I know if I can just line my hat with tin foil or have to cover the back of my skull as well...

0
jtobako
jtobako

Reply 13 years ago

So just the hat then ; ) I wonder what the frequency is, and if I could use a wire hair net as a faraday cage...

0
jtobako
jtobako

Reply 13 years ago

So...I hafta wear the funky sunglasses too? Darnit...

0
jtobako
jtobako

Reply 13 years ago

With plum sauce... Or jalapeño jelly.

0
jtobako
jtobako

Reply 13 years ago

I like my eyes with plum sauce or jalapeno jelly, my grandfather liked them fried but wouldn't eat the lens. Small ones pop in your mouth, but the larger ones you have to suck the juice out of first-or spread it on toast...

0
Weissensteinburg
Weissensteinburg

Reply 13 years ago

Well if your eyes are contaminated from not wearing glasses, you won't want to eat them.

0
jtobako
jtobako

Reply 13 years ago

Grapefruit Glasses! "However quick an eyelash flicker A grapefruit's squirt is even quicker." -Oden Nash (I think)

0
trebuchet03
trebuchet03

13 years ago

I feel confident in my gardening abilities :D Both indoor - and outdoor :D

0
NachoMahma
NachoMahma

13 years ago

. Well, for food, I have guns, plenty of ammo, and live where wildlife is plentiful. I'm not much of a hunter, but should be able to keep from starving and could stand to lose a few pounds anyway. . As far as money is concerned, who cares? My house, cars, and everything else are paid for. . As long as I have food and water, I'm OK. I can get by without electricity or the 'Net. Natural gas is nice, but I live in the middle of millions of acres of trees and it doesn't get that cold here. . Bring it on!