What Happens When A Paper Currency Fails?

[Mossy]

Wow I 'm a fool for not believing that s--t. Sure based on reality but added drama for consumption.
Zerohedge drama queen news.

The author did specify it was "worst case" in known history, IIRC. However, I've also heard of people in several countries being paid daily so they can run down to the grocery store to buy food (if any is availible) before the money loses value.

Swing over to FerFAL's blog:

ferfal.blogspot.com

I think the name is from his first name, Fernando, and his initials. Anyhow, he lived through the Argentina collapse, and can describe how his neighbors have had "home invasions", street robberies, kidnappings, etc, and he is middle class. The Zerohedge article understates the problems people have in a civilization collapse.

[Thogey]

Wow I 'm a fool for not believing that s--t. Sure based on reality but added drama for consumption.
Zerohedge drama queen news.

Call me a fool all you like oh wise sage.

was that to me, brother?......"oh so wise sage"?....did i say something to offend you, if i did, please forgive me.

No Neil,

It was directed to the meanest old fart here.

Can't say I disagree with him though. But he is definitely offensive!

[beauanderos]

Wow I 'm a fool for not believing that s--t. Sure based on reality but added drama for consumption.
Zerohedge drama queen news.

The author did specify it was "worst case" in known history, IIRC. However, I've also heard of people in several countries being paid daily so they can run down to the grocery store to buy food (if any is availible) before the money loses value.

Swing over to FerFAL's blog:

ferfal.blogspot.com

I think the name is from his first name, Fernando, and his initials. Anyhow, he lived through the Argentina collapse, and can describe how his neighbors have had "home invasions", street robberies, kidnappings, etc, and he is middle class. The Zerohedge article understates the problems people have in a civilization collapse.

Thanks for the link. He writes eye-opening, informative pieces. I'm posting a link on his article on how to minimize your potential as a thievery/mugging target on a different thread.

Eric... Eric. Tsk, tsk. That's the nicest thing anyone has said about me all week

[Pennybug]

There MAY be one REAL silver lining to this scenario for those of us who are preparing for it...

IF this were to happen... I believe that a mortgage would still be based on the old currency "value" (since it was a contractually agreed upon dollar amount). Therefore... if the US dollar became a 10:1 ratio fairly quickly, you'd be able to pay off a 100K loan effectively for 10K. Now... let's say that silver is around $500/oz then (probably plausible)... if you had bought 10K of silver at the $50/oz... you could effectively pay off your house. In fact... if this is a realistic scenario... it makes right now a GREAT time to buy a house (since you can pick up a GREAT $200K plus valued house for around $100K). You would effect buy a house right before the collapse of the US dollar for much less than the value of the dollar at the point before the collapse.

I don't mind saying that this is the plan I'm about to pull the trigger on within the next two weeks.

The question I have though is what will happen to mortgages during a time like this? Will folks keep paying on their houses? Will foreclosures keep occurring if not?

Neal... I'd be quite interested in hearing your thoughts here...

Pennybug, get with someone really smart on the issues of mortgages and real estate law. As I understand it, the banks had legislation written decades ago that would allow for all mortgages to be re-valued should there ever be an economic emergency, such as an official re-evaluation of the dollar. But don't take my word for that. Go look it up yourself, or get some help, before you commit to any economic obligation counting on inflation to redeem you out of a mortgage.

It's really a side effect. After being laid off for 2 years... I'm back on track with a good company and I've been forced to move to a new state. They have a GENEROUS relocation package that they extended to me... so given what I've seen in the housing market and what they've offered... I've decided to buy a house. Smart? I dunno... just seemed like the right thing to do. I'm planning on making an offer on a 4000 sq ft house for just over 100K. That will make my mortgage right at my car payment (which is about to get paid off). Therefore... If I loose my job again... All I need is a minimum wadge job to keep my house. I only stated my original idea as an "added bonus" side effect or... ultimately a what if question. I couldn't find a house ANYWHERE NEAR this nice to rent for what my mortgage will be.

[neilgin1]

i think ...THINK. Ferdanado's "FAL" is referencing the Belgium FN-FAL, the "Beamer" of military assault rifles.....FerFAL defintely has his poopoo together big time, i like some of his some of his thoughts on "short gun/long gun"...there's a lot of hard won wisdom there, that boys been thru some hell.....not Liberia-type hell, but skeery kind of hell all the same.

add: definition of "Liberia" type hell: here's a really neat 55 minute NatGeo doc on Blood Diamonds:
http://www.youtube.com/watch?v=aaqQjIzIbiY

[ardorlan]

just my thoughts in regards to banks changing the underlay currency. It has come clear to me that we have 2 laws in this country one for the rich and one for the poor. Of course the banks would fall under the rich side.
That being said,

If the [shucks] hit the fan would people be forced out of their houses? Already I have heard story's of sheriff refusing to evict people, neighborhood watch groups forming together to prevent further eviction in low income neighborhoods and for that matter what is the value of a home when none can afford to live in it?

Surely A nightly Stay in a house can never be more then a hard days(16 hours) work, We don't have a storage of empty houses do we?

[Sheikh_yer_Bu'Tay]

just my thoughts in regards to banks changing the underlay currency. It has come clear to me that we have 2 laws in this country one for the rich and one for the poor. Of course the banks would fall under the rich side.
That being said,

If the s--t hit the fan would people be forced out of their houses? Already I have heard story's of sheriff refusing to evict people, neighborhood watch groups forming together to prevent further eviction in low income neighborhoods and for that matter what is the value of a home when none can afford to live in it?

Surely A nightly Stay in a house can never be more then a hard days(16 hours) work, We don't have a storage of empty houses do we?

The Congress "tweeks" and out-right re-writes laws every year. The laws are a ever changin' (sorry, I channeled Woody Guthrie for a moment. )

If you have a variable rate mortgage on anything... get it changed into a fixed rate mortgage ASAP! Pay off everything you can now. And yes, look up the latest laws on if and when the mortgage companies can re-valuate your mortgages. Don't assume you know the answers until you really do.

[theo]

just my thoughts in regards to banks changing the underlay currency. It has come clear to me that we have 2 laws in this country one for the rich and one for the poor. Of course the banks would fall under the rich side.
That being said,

If the s--t hit the fan would people be forced out of their houses? Already I have heard story's of sheriff refusing to evict people, neighborhood watch groups forming together to prevent further eviction in low income neighborhoods and for that matter what is the value of a home when none can afford to live in it?

Surely A nightly Stay in a house can never be more then a hard days(16 hours) work, We don't have a storage of empty houses do we?

I think they would allow would most people to stay in their homes for "humanitarian reasons" (at least initially), but as renters not owners. Of course the bank/government, not you, would have complete control of your property and its resourses. Things like planting a garden or installing a security fence would require approval. In the extreme, they could designate your place section 8 housing and force you to take in housemates. Or they could eventually relocate you to an apartment building as part of a green suburban consolidation plan.

[neilgin1]

just my thoughts in regards to banks changing the underlay currency. It has come clear to me that we have 2 laws in this country one for the rich and one for the poor. Of course the banks would fall under the rich side.
That being said,

If the s--t hit the fan would people be forced out of their houses? Already I have heard story's of sheriff refusing to evict people, neighborhood watch groups forming together to prevent further eviction in low income neighborhoods and for that matter what is the value of a home when none can afford to live in it?

Surely A nightly Stay in a house can never be more then a hard days(16 hours) work, We don't have a storage of empty houses do we?

I think they would allow would most people to stay in their homes for "humanitarian reasons" (at least initially), but as renters not owners. Of course the bank/government, not you, would have complete control of your property and its resourses. Things like planting a garden or installing a security fence would require approval. In the extreme, they could designate your place section 8 housing and force you to take in housemates. Or they could eventually relocate you to an apartment building as part of a green suburban consolidation plan.

thats some wisodm there bro...i dont even wanna write , what emotions get stirred in me when i read that......

[Mossy]

"...there's a lot of hard won wisdom there, that boys been thru some hell.....not Liberia-type hell, but skeery kind of hell all the same.

I originally suspected the same about the rifle, but noted that the last name he uses on the net is "Aguire", the Hispanic naming conventions allow several "last" names, and he'd be a fool to let his gov't have an easy way to track him. He does not strike me as being a fool.

His popularity has him speaking beyond what he has thought out, though. His earliest writing is the highest quality.

[whatsnext]

Wow I 'm a fool for not believing that s--t. Sure based on reality but added drama for consumption.
Zerohedge drama queen news.

Call me a fool all you like oh wise sage.

your words speak for themselves.

They do indeed.

You pay for the bus on entering the bus.

[neilgin1]

"...there's a lot of hard won wisdom there, that boys been thru some hell.....not Liberia-type hell, but skeery kind of hell all the same.

I originally suspected the same about the rifle, but noted that the last name he uses on the net is "Aguire", the Hispanic naming conventions allow several "last" names, and he'd be a fool to let his gov't have an easy way to track him. He does not strike me as being a fool.

His popularity has him speaking beyond what he has thought out, though. His earliest writing is the highest quality.

Agreed, his earlier writing is the best...writing continually for a blog is HARD work, and to keep up a high standard 24/7/365?...cazart! i'd go bonkers...