RE: Resident of Texas!
haha! thanks for getting back to me willymac. that Texas citizenship thing was such a hoot and a great post! You mentioned that the next six months look bad for the economy, of Florida?
why would that be? I thought it was booming over there?
As far as the highly esteemed @glenalbrethsen goes..I don't think he chases anyone or needs to chase anyone. He's the real deal being an actual author and writer, I'm just a friendly guy who asks alot of questions and people are kind enough to talk to me.
I just saw Glen's comment lol. yes sir, I am pitifully far behind on work that needs to be done on our property. Thank goodness it's been dry and hot because the grass stopped growing. I haven't had a day off, at least not a full one, in decades. thank you sir for the excellent comment!
I hate that "I'm behind on things" feeling. Five years ago, I was going to put in a wide gate in a fence and I got the posts and gate and they have been waiting so long to be installed the gate is rusting! I'm going to get it done but it must not have been as needed as I thought! It's the other things that pop up. Things like replacing the septic tank drain line and patching holes in the driveway and cleaning up fallen trees (and homesteading new dogs) that keep moving the to-do list on down.
The external worries are about the country and world's economy getting trashed. Inflation is bound to kick in and the US is looking at a one TRILLION dollar deficit on our credit card this year. That kind of thing can't go on when we already owe 60 trillion and don't have a prayer of a chance in paying it off, even if we wanted to, which we don't. On top of that, the banks have a QUADRILLION dollars worth of derivatives and there ain't that much money on the planet. Guess what's going to happen to them when the cookie crumbles?
yes sir, when you look at all the insanity and the cliff that we are on financially and knowing that something could trigger a collapse of the whole house of cards it's not a stable feeling. I have no idea what's going to happen.
I got into the financial part of that when I was working on my MBA and it has been a point of fascination ever since. The simple fact that the US does not have its own money is mind boggling! The Dollar is an IOU issued by the Federal Reserve Bank (that is neither a Federal bank nor does it have a reserve) and it is not an obligation of the US!
Treasury bills are IOUs we issue to get cash to spend. Everything goes on our credit card and we make interest only payments with no possibility of paying anything on the card balance!
Pure financial insanity, and people don't pay any attention!
On top of that, we are going to "borrow" another trillion dollars more this year than we will have in revenue and no one blinks an eye that we already are 20 trillion in the hole - 60 trillion if you include the obligations the US has that don't show on the books! We even borrow the money every year to pay the interest on what we already owe! How's that going to work out?
You could not have all that as a believable plot in a bad movie!
I'm proud to see that the Great State of Texas has started its own central bullion depository in Leander where you can deposit your gold and silver to back verified transactions when the Dollar becomes useless and the banking system implodes one Friday night.
HODL and keep on stacking!
howdy today @willymac! yes sir, Texas has been working for a long time to be able to stand on it's own if things collapse such has having their own Fort Knox with actual gold in it and our electric grid stands on it's own in case the rest of the country goes down.
yes I understand about the finances, and it seems like I read that with derivatives included in the debt it's something incomprehensible like 200 trillion or something like that! lol.
and so it is your opinion that it could collapse at any time?
Yes, any time. More closer than farther away. When the Dollar loses reserve currency status, maybe this fall.
With derivatives, it is one quadrillion dollars, since all banks will be caught when the dominoes fall in a few minutes. That is why it is beyond belief. Anyone with money in a commercial bank will have zero. It actually is not theirs anyway, even if it was real money in their bank, and that is something else people don't focus on.
Texas will have a depository with real gold, as opposed to Ft Knox that once had gold before it was all re-hypothicated out.
That, along with a disconnected power grid, a decent sea port, oil and nat gas. And Texans!
It really is frightening to see how fragile it all is and how massive a failure would be.
And that's my positive outlook for it :)
hahaha! I'm glad you're so cheery about it!
where do we keep our money then, and does it matter what bank? ours is a locally owned bank, not a national one
you think we will lose the Reserve Currency status that soon?
If the big banks fail, the Dollar will fail, and even the well run, smaller banks will fail because they deal in dollars. It will be the same thing that happened to the Confererate money after the Civil War.
Over a dozen countries have signed trade agreements to begin doing business in Yuan, ant ar some point the Saudis will join in ans a few trillion dollars will come back home and the US economy will be up to its knees in dollars no one needs.
Or, A big bank could trip over a derivative, its counterparty bank could fail, and a cascade of dead banks would follow. That could happen any timel
Stack bullion in a hole somewhere and hope.
Or, maybe Divine intervention will prevent it all. I can't think of anything else that would stop it.
howdy this fine Sunday @willymac! Well sir this is a depressing topic for Sunday but it sure is important to understand.
So do you just keep a small amount in the bank to operate your household on?
you are saying we shouldn't keep savings in the bank?
oh, and the Fed can't make up money out of thin air and loan it to the banks if they get in trouble?
sorry for all the questions but this is pretty alarming, I think you should do a series of posts on this.