In my wildest dreams, I never thought I would be having this conversation.
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Al,
I don’t see anything wrong here, perfectly logical. We bought a house last year with 30% down at 4.25%. It’s cheaper than renting and for the time being the interest is tax deductible. However we are younger and so do have different investment objectives.
I agree with you Jason.
My time horizon is, as you put it, much different from yours!
Big Al
HI Big Al,
I don’t think that you are wrong.
In my personal case, at my age I want to own my home. Although as Vortex says, I could loose it to a taxing authority.
Big Al
You two guys have signaled to me that we are near a bottom. It’s 2009 all over again, it’s just a matter of staying solvent longer than the market stays irrational.
I hope that you are right!
Big Al
I agree with Trader Rog, that the world is going through Greater Depression 2, and everyone should be prepared for economic chaos and disruption never before seen in modern history. You both share excellent advice and tips for how everyone can prepare for the challenges ahead.
In any case it is best to have a stockpile of food and water in case of an emergency. Hurricane Katrina showed us that you could go days without help following a large scale natural disaster. No mater what happens you can always consume the food in your stockpile. Another good thing to remember is that the food you buy today maybe more expensive in a year from now, so you will also save money if you buy and store extra food for yourself today.
Good point Nick!
Big Al
Very interesting nuance the last 2 days. You have gold minimally up with the conventional markets down big time and the dollar up. Gold appears in the early stages of not caring about the movement of the conventional markets and dollar. This could be very significant and would make sense considering what I’ve been alerting people about the significance of the Dow/Gold ratio and it’s 200 week MA and how close they are for the first time in 4-5 years.
Right on, Doc!
It will be interesting to see how all this plays our for Dr. R (or the listener claiming to be Dr. R)!
Big Al
You go that right Richard! Gold has been vascillating between $1550 and $1580 as the dollar inches ever so higher and the markets keep getting taken to the woodshed. The compression that is occurring inside this Descending triangle is going to have a lot of strength when it blows out, and the way gold is acting, it looks more positive now than ever. I still don’t know if we go “blasting to the moon” but to get out of this consolidation going to the upside would sure do wonders for the metal. I think we are going to possibly retest that June low in the markets sooner than expected.
mark alan
http://marksstudio.wordpress.com/2012/07/24/artwork-ye-ole-barne/
I have also noticed that there a divergence from the link between precious metals and the general market direction. Precious metals, the dollar, and oil have at many times recently been moving in tandem. That to me signals the safe haven nature coming back into play. That is a good sign.
big al:
Please ask trader rog whats better than a safety deposit box. A private vault introduces a third party, isn’t that why we love gold?-ie: no third party risk?
i understand why a home safe would be fine, but what if that isnt feasible, for instance if you live in a gigantic city?
Thanks guys-PEACE
HI Edward,
I really think it is what makes you comfortable.
Big Al
Hello All,
Trader Rog is providing very sound advice IMHO. I keep only enough $$ in the banks for paying bills. If you don’t hold it, you don’t own it. I have no faith/trust in the banking system any more. Many will panic when they can’t get internet access to their bank accts, and the ATM’s won’t work. NO WAY would I have any valuables in a banking safety deposit box! When the bank is on “holiday”, you won’t be able to get to the box. I purchased a fair sized safe that can be bolted into the floor. It’s good for all the gold/silver stacks, and Also cash and important papers.
Having a food and water supply is an absolute must. I have at least a 6 month supply on hand at all times. Having survived several hurricanes, it has made me conscious of “being prepared”. Being without electricity for 3 weeks in the dead of summer in Florida teaches you the importance of having a generator/gas reserves/candles/camping lanterns/matches,paper products, medications, first aid supplies, etc ready for the using. I could go on and on, but I’m sure you are getting the picture.
I do NOT trust the Stock Market, and would NOT invest in it at this time. It takes a much wiser person than myself, (as many of you are), to not get burned with the trading.
My comments are not intended as investment advice, nor are they intended to cause panic for anyone. I know that I feel more comfortable doing what I have done to prepare.
All the best to all of you! 🙂
Jody D
Jody D,
Great job – hope all is well with you.
Marc
Hey Marc,
The times are getting VERY interesting! I’m doing fine.
The best to you and yours!
Jody D
Oh yes, I bought a supply of sea salt the other day, this is a commodity that will be in demand in a crisis.
Like to have you elaborate on this one.
Big Al
During the middle ages salt was used as a currency but the problem these days is we have so much salt in our store bought food that it causes all sorts of health problems. I prefer iodized sea salt for it’s health benefits but if their is a breakdown in s0ciety and you don’t have salt to eat and possibly cleanse wounds you will be left without one of the basic building blocks. It also could be used to barter for other basic food commodities because a lot of people don’t understand how the body needs this substance and the next time you go out in the hot sun watch to see how your body secretes life saving salt.
Shawn,
Nice advice, I have been collecting sea shells, just in case Manhattan comes up for sale again.
Bobby
Want to buy some from me?
Big Al
Al,
Perhaps we can do a trade, I still have that great Florida land.
Big Al,
Here is the unvarnished truth with the curtain of illusion pulled away to view the United States as it really is, not some buffoonery of self-delusion that millions of Americans call reality.
The very concept of investment safety is an oxymoron in a world of financial anarchy and contract law being unenforced and no judicial repercussions for criminal conduct. The significant dangers inherent within the markers today are a direct result of the fascist governing architecture, unmitigated criminality and corruption protected by the Police State doctrine that cloaks all world markets and banking institutions and compromised regulators.
The simple answer to your question of what is safe in today’s climate of investments with a jack-booted fascists/socialist model and their militarized policing agencies, taxing and confiscation forces coupled with a dieing currency…..the answer is nothing.
The facade of true ownership and safety in markets with a leviathan governments carrying out a feeding frenzy against its own citizens is the hallmark of a descent into a state of repression and force.
Real Estate: No one in the United States actually owns any property that they hold title to, you rent it from a taxing agency of force. Ownership and it’s facade is just another lie of long-standing maliciousness and perversion to placate the masses.
– You can keep possession of your dwellings as long as the State, County and Federal taxing arm of the banking oligarch’s allows you to or the bureaucrats at the State level don’t steal it through eminent domain bylaw’s.
Real true ownership of even things like Gold and Silver or any other commodity of true value is another lie that is allowed only at the whim of the governmental force and taxing structure. Since the Constitution is no-longer the defining document to guide our country, you and every other citizen is nothing more than a taxing unit that can keep what the bureaucrats designate on any given day.
They can and will steal and confiscate through taxation any assets of value as the greater insolvency of the nation unfolds.
Additionally when the Republican’s and Democrats globalists remove America’s right to keep and bear arms, and implement the UN Charter to disarm the population, the control doctrine of enslavement will be discussed openly by American elites as they rejoice in David Rockefeller’s dream being achieved.
Banking accounts are no-longer safe and can and will be confiscated on a whim all in the name of the great lie of “National Security”.
Brokerages and Commodity accounts of all stripes are literally open season for unencumbered criminal theft and confiscation as the criminal fascist business model reigns supreme in a atmosphere of financial anarchy and criminality.
At the end of the day, we as American’s have allowed this subversion of humanity and our country to take hold and grow into the perversion it is today. Therefore, any continued participation in the bankrupt political apparatus will only ensure it continues.
Sorry Al. It’s a brave new world and you an I only own what’s in our mind. All the rest of that crap is just being rented to you until big brother needs to redistribute some of your productive wealth from years of your blood, sweat and tears.
Gotta try, man, gotta try!
Big Al
Oh I agree Al, you have to fight on, but don’t be surprised when the people you call leaders, lead you and me right over the cliff.
Hi Vortex,
I like what you wrote saying the only thing we really own is what is in our mind. And I choose to try to br rich, rather than be poor. Best to you
Hi Keep Stacking,
Yes, always try to improve your place in life.
Morning Vortex,
I very loosely call them leaders!
Big Al
Vortex – the govt does need us, as milk and beef cows. As sheeple waiting to be shorn. The problem with holding your assets in non-Federal Reserve Notes is that the property tax office only takes FRNs. Preferably by check, no pennies or we’ll call the sheriff. Hold all your assets in FRNs and you are in the grip of inflation, the stealth tax. Sooner or later the boiling pot gets too hot for the frog, and he’ll jump. The problem is, the current administration is very good at overpowering individuals, and they claim to be ready for small group insurrections as well.
I support everyone becoming as independent from govt and govt services as possible, but now the govt is going after “off the grid” individuals in Arizona and Colorado just for that very reason. This is why I argue against “going Galt” or trying to leave the country unless you are wealthy enough to own the yacht with crew or plane with pilot. But it’s still legal to prepare for the worst in your own home. Don’t depend upon counterparty risk or third parties.
Morning jhpace1,
You make some very interesting points.
I just wonder why a sane person would hold all his/her assets in federal reserve notes. I certainly do not.
Yes, frn’s are the basic common currency and holding them does put a person in the grips of inflation, but isn’t that why we purchased precious metals?
I also support everyone becoming as independent as possible.
Best to you,
Big Al
Sounds like everyone’s stress levels are HIGH and I cannot blame them!
BUT
Don’t forget, as a WW2 Vet said “Every day above ground is a good day!”
Tex, I’m not sure why anyone’s stress level should be high because none of this should be a surprise to anyone that can think for themselves. Anyone with half a brain could of seen this train wreck coming years ago.
Vortex,
I agree with you about your stress level comment. This site has been very helpful in helping us to think of options that are needed to prepare ourselves as best we can for whatever the future brings. The people who refuse to listen and prefer to bury their heads in the sand will be the most at jeopardy.
Jody D
Hi Jody,
I agree completely.
jhpace1,
I agree completely with everything you just said with one exception. The Gov only needs you and I as taxing unit’s for as long as your compliant and open to the greater manipulation of the collectivist/socialist doctrine.
Once you openly deviate from that stance, you are a marked citizen. You’ll be used as cannon fodder for the “Tokyo Rose” disinformation campaign.
Morning Vortex,
What do you think the odds of less government are?
Big Al
Big Al,
The chances of less government coming to fruition on a voluntary basis is about as remote as you or I growing wings and flying.
The downsizing of the leviathan will only be achieved through reinstitution of the rule of law, free market culling of the bankrupt and the full acknowledgment by the PTB that the fraudulent unsustainable exponential monetary growth ponzi scheme has reached it’s apex.
We are at that point now and the transition to reintroduce order and restructure the parasitic oligarchical structure will be deadly.
We as a nation are at the dawn of a tranquil moment just before the event horizon is breached and mother nature unleashes the undeniable quantifiable mathematics and physic’s trump card to America and it’s mass of heathens.
The leviathan construct that is big government will not succumb to the down sizing process through voluntary means, nothing short of unmedigated force will circumvent this destiny.
Unfortunately, whats coming is going to be the most humbling experience you could have ever imagined you would live through.
V
Vortex,
I would have to agree with you.
Big Al
Let me add, if you can afford the mortgage at 4.25% then sit tight unless your insurance is off kilter, then it’s another story because dollar for dollar, that could be 9% in all. I know a few folks in that situation. However, young or old, why not wait it out until gold reaches levels that one can pay his house off and possibly buy a few more mortgage free. The way I see it is that if you have a $100K mortgaged on your home, isn’t it better in your cubby in the form of gold rather than the bankster’s pockets? Any other debit I understand but a home at these rates? I think it’s one of the very few perks us little folks can profit on. Just my thought.
Solid advice from Rog!
Aside from gold and silver, I also save nickels, which will most likely be the next coin taken out of circulation. I’m looking into a generator as well.
Hi Big Al and Trader Rog,
Down to earth common sense is what you guys are about with some ideas I never thought of. Many Thanks
5 g’s as per Robert Kiyosaki gold guns grub gear ground….and I would add staying in close touch with good friends especially in the interim…no one wants to hear from someone in a crisis if they haven’t heard from them in 10 yrs…only to hear they have a problem!
if you are on public nat gas [available on your street for hookup] buy a nat gas pawered generator. the gasoline powered ones cost more to run, and make lots of noise. good sized ones are very expensive, but worth it. S
Hi Scott, just thinking to add what you said before I read it from you. You can buy a good generator on Craigslist.org that`s a super bargin because people are broke and are really wanting the money-best offer is it. Plus having a cheap AC amp meter is good to checking out what your items that you have that need to have the watts to power. In horsepower it takes twice the amps to kick a motor on eg. 1HP = 746 Watts. As to Nat Gas or a dual or tri-fuel generator can be had too which runs on gasoline or nat gas or LPG. Also you could have a solar generator as well to keep the 12V batteries running with that inverter to AC current for running your old PC and satellite for signal with wireless router DSL to you guys can still check for internet news, etc., also buy software for Vontage-wireless phone like magic jack if power is out as well. Or just go but an RV – motor home also from craigslist.org its got it all right there. PS…. I`ve noticed that platinum is at $1383 and gold is at $1583, just its kind of odd you would think it should be the other way around, though palladium is still high ?$573?, but around there can`t quite remember exactly the figure. Gold & Palladium(Pd) are holding their own while Platinum(Pt) is going down guess the demand is such is the problem. Pt is an industrial metal and its use isn`t in demand as much. Pd is a substitute for Pt anyway in catalytic converter tech., but its lack of use as to demand is a telling story in and of itself.
I love it when Big Al starts getting scared. Gold usually goes straight up! I predict this for Wednesday, Only problem is that I also expect and predict a slam on Thursday or Friday as the NGM simply will not let it break out.
Bobby……gold was up as you called on Wed….maybe , we should put Al on a meter….
a” scardy cat meter”,,,,but, if we do that would that be insider trading information…..
Years ago Traderrog had a Mennonite neighbor in Eastern Pennsylvania living in a 1740’s stone farm house on 80 acres. He told me the 1930’s were no changes for him as he was totally independent on his farm FOR EVERYTHING. He donated food to neighbors as he had plenty. He drove a 25 year old car with the chrome painted black to not be showy. He had pigs, chickens, and cows. He raised grain and vegetables and asked nothing of anyone. His wife canned everything including fruit and vegetables. This is lesson as to where we need to go perhaps on a sharing basis. If you seek nothing from the government, they do not own you. Watch the 4th quarter of 2012.. it is going to be unimaginable- Traderrog
How did our blog readers like my call on gold this wednesday? -Traderrog
TR,
Keep up the good work! 🙂
Jody D
Rog,
It’s in a trading range….so nothing out of the ordinary, this has been going on for some time now.
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Great article, agree 95%. However, as per debt. Long term fixed rate mortgages? Inflation should be good for such debt. Fixed rate car loans too as long as you don’t owe more on your car than it’s worth. Gold has been going up about 15% on average year after year, why pay off my house at 5% or less when I can keep gold appreciating at 15%? I don’t get it. Please let me know where I’m going wrong in this line of thinking.