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"If It’s Not A Hard Asset, It’s No Asset"

Tyler Durden's picture




 

Submitted by Tom Chatham via Project Chesapeake blog,

There are many people that give you a list of things you should have if something bad suddenly happens. There is nothing wrong with that but many people never give much thought as to why those things are valuable during or after a crisis.

How many times has someone told you to hold physical stock certificates or treasuries in case the banks are shut down or keep your credit card paid up just in case you need to make emergency purchases? I’m guessing not very often. Why is that? In normal times it might be a smart thing to do but in a serious crisis that has the capacity to change society, those things become worthless.

Everyone has read the many stories about what would happen if the power grid were to go down. Basically everything that depends on electricity would stop working and become useless. Well, if the banking system were to shut down because of economic collapse, cyber attack or a grid down scenario, everything connected to the banking system would stop working as well.

If you were holding a credit card, what good would it do when it is issued by a bank and depends on credit created by the bank to work? No bank, no credit, no working card. Having a physical stock certificate in hand might seem smart but once the banking system is shut down, what will you do with that piece of paper? Even if you could find someone to buy it, how will you get paid? If the monetary system has collapsed, what medium will you take payment in? Even if you find a person to buy it, and they give you cash, is that medium of exchange going to be worth anything?

That certificate shows you have ownership in a company but with the monetary system shut down, how much will that company be worth as time goes on? If you have money in retirement accounts, savings accounts or checking accounts and the banks shut down, all you have to prove you have money is a monthly statement. You have nothing. Paper assets only have potential value if normalcy returns to the system following a crisis.

In normal times, little pieces of paper or plastic make everyday life possible but when normal times end you need something in hand you can actually use. Keep in mind that any wealth you have invested or in the bank or retirement account is potential wealth. It only becomes actual wealth when you trade it in for something you actually need or want. It only becomes wealth when you trade it for hard assets.

There is a reason people give lists of physical goods to deal with a crisis. You cannot use potential wealth to provide everyday needs, it takes physical goods. Many people like to say you cannot eat gold, well a paper certificate does not make a very good meal either. The primary difference is that gold has a store of value because it takes work to produce it just like copper, nickel or any other metal, it just happens to be worth more because it is harder to produce than others due to lower quantities in the ground.

When potential wealth no longer exists or is unavailable for extraction from the system, if you do not have physical goods on hand to provide for your needs you will suffer. It is that simple. That is the whole idea behind buying physical goods for later use. When you buy and store it you have actual wealth at hand and no counter party risk.

What kinds of hard assets should you hold? That answer will be different for different people. For someone with limited skills it may be necessary to hold things such as precious metals so you will be able to trade for the things you cannot produce yourself. You may also want to hold books that provide you with the knowledge you lack. For someone with skills, some of those hard assets may be held in the form of tools that they can use to perform their skill or service.

There are some hard assets that are universal such as food, water filtration, weapons, energy production equipment, medical supplies or clothing. Some hard assets are durable, they can be reused, such as weapons and water filters and some are expendable, you only use once, such as medical supplies or food. You need to distinguish between the different types of hard assets and hold them in the appropriate quantities as you deem necessary.

One of the primary things people need is shelter. A home could be considered a hard asset but if that home burns down or you do not own it in full it is no longer an asset. As far as that goes, the land under that home is a good hard asset to own in full. All hard assets are not created equal so you need to give each of them the value they deserve.

When fiat currencies fail, one of the only things of value left standing will be hard assets that are needed by individuals for everyday needs. The paper promises will dissolve along with the public confidence in the banking system. One of the other things left will be the knowledge and skills people possess that can be turned into hard assets. In a sense, a knowledgeable person is a hard asset that can be utilized to secure needs and services so don’t overlook that.

A hard asset is something that will maintain its usefulness through good times and bad, especially when normal times turn into chaos. If you have not done so already, now is a good time to determine what hard assets you have that you can depend on when the system fails. Everything works until it doesn’t. This is especially true for ponzi schemes and fiat currencies. Don’t be the last one holding paper when chaos strikes. You may live to regret it.

 

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Thu, 01/15/2015 - 19:49 | 5667484 whotookmyalias
whotookmyalias's picture

With Bernake gone, what do we call ABCD?  AYCD doesn't have the same poetic flow.

Thu, 01/15/2015 - 20:10 | 5667600 knukles
knukles's picture

Ya'kno, there's another thing they don't tell y'all about Venezuela.  Nobody can get plastic surgery anymore.
See, the folks in LA vote for Oyammie is takin' away their own good looks.
Dumbshits

Next thing is that the ValGirls'll have to be injectin' semi-diluted (methanol works) Hi-Polymer Pentel erasers, the white rubber sticky thingamajigs into their lips and titties.
Won't like that shit a bit, will ya", huh?

Everything has a price!

Thu, 01/15/2015 - 20:16 | 5667642 Publicus
Publicus's picture

Yup, like guns and ammos, and food.

 

Metaltards will be vaporized.

Thu, 01/15/2015 - 20:19 | 5667656 LawsofPhysics
LawsofPhysics's picture

Interesting, how did that work out last time?  Personally I don't think you can have one without the other.  Ying/Yang and all that.

Thu, 01/15/2015 - 20:42 | 5667771 Publicus
Publicus's picture

Last time? Gold confiscation by the government.

Thu, 01/15/2015 - 21:21 | 5667993 Greenskeeper_Carl
Greenskeeper_Carl's picture

Do you REALLY think they are going to go door to door collecting a few ounces at a time from the handful of people that even have any? Didn't happen last time, won't happen this time. If it ever got to that point, they are going to have their hands full with way more than attempting gold confiscation. IF that ever happens, they will nationalize whatever is in the banks and private storage facilities and nationalize all the mines, in which case any gold mining stocks you own would go to shit, but stock and paper would already be worthless at that point anyway.

Thu, 01/15/2015 - 21:54 | 5668162 Lets Buy The Dip
Lets Buy The Dip's picture

who cares trade gold futures.... or the inverse which is MR market. market looks in trouble here in the short term. 

, the bullz are in trouble here, SPX TRIANGLE breaking down Chart here ==> http://bit.ly/1B4K0wk

Thu, 01/15/2015 - 20:37 | 5667757 post turtle saver
post turtle saver's picture

"yo turn over ladies, lemme look at mah assets"

http://youtu.be/lFXHaai3srA

Thu, 01/15/2015 - 19:46 | 5667488 mt paul
mt paul's picture

they are only hard

if you don't own them ..

Thu, 01/15/2015 - 20:07 | 5667597 junction
junction's picture

If they are not hard, you get screwed.  As opposed to Cialis situations.

Thu, 01/15/2015 - 19:47 | 5667494 johngaltfla
johngaltfla's picture

Hard asset? That's the nickname my wife gave me....

Thu, 01/15/2015 - 20:07 | 5667587 LetThemEatRand
LetThemEatRand's picture

Now that's a clever porn name if I ever heard one.

Thu, 01/15/2015 - 20:25 | 5667689 FEDbuster
FEDbuster's picture

Hard Asset meets the Black Hole??

Thu, 01/15/2015 - 20:11 | 5667621 nuubee
nuubee's picture

Did she let it on her balance sheet? If not, I'd say you can avoid official amortization.

Thu, 01/15/2015 - 20:41 | 5667780 847328_3527
847328_3527's picture

Not all assets are created equal; some overvalued [like RE] and some undervalued [like PMs].

 

L.A.'s housing market is starting to look a lot like 2007

 

http://www.latimes.com/opinion/readersreact/la-le-0115-thursday-affordab...

Thu, 01/15/2015 - 21:40 | 5668090 logicalman
logicalman's picture

Problem with RE ....

Not exactly portable.

Only way to keep it is to defend it.

If the mob is big enough and armed, you are fucked.

At least you can do a runner (assuming you are fit - the ulitmate hard asset) with at least some of your PM.

 

Fri, 01/16/2015 - 03:38 | 5669126 zhandax
zhandax's picture

LM, if the RE is far enough out in the sticks, the mob isn't going to bother.  Useful aspect of hot-headed idiots out of their element.  Add in it's work to get there.  There's that word again.

Thu, 01/15/2015 - 19:50 | 5667502 disabledvet
disabledvet's picture

He has TWO televisions!

Did you hear that?!!!???

 

TWO televisions!

Thu, 01/15/2015 - 19:56 | 5667530 Keltner Channel Surf
Keltner Channel Surf's picture

One for CNBC, the other shows a bull banging its head repeatedly against a cement wall.

Thu, 01/15/2015 - 19:59 | 5667550 disabledvet
disabledvet's picture

And SIX rotary telephones!

 

SIX!

Thu, 01/15/2015 - 21:41 | 5668098 logicalman
logicalman's picture

Can't understand why anybody would have even one!

 

Thu, 01/15/2015 - 19:50 | 5667510 km4
km4's picture

speaking of assets....Saudi Arabia on the Edge of the Abyss 

Last week, just before the Charlie Hebdo attack, ISIS sent a suicide team across the border into Saudi Arabia from "Iraq" to attack an outpost.  

Here's what happened.

http://globalguerrillas.typepad.com/globalguerrillas/2015/01/saudi-arabi...

 

 

Thu, 01/15/2015 - 19:54 | 5667525 waterwitch
waterwitch's picture

Queue an attack on SA oil production choke point in 3, 2, 1....

Thu, 01/15/2015 - 20:14 | 5667628 nuubee
nuubee's picture

What are the chances that this time, SA calls on Iran for help, instead of the US?

Thu, 01/15/2015 - 20:57 | 5667855 Manthong
Manthong's picture

I imagine no enemy could get by it.

Imaigine no?

 

Ah, Maginot.. it has a nice ring to it.

Thu, 01/15/2015 - 21:49 | 5668135 KnuckleDragger-X
KnuckleDragger-X's picture

The Saudi's are hardline Sunni and Iran is radical Shi'ite and they hate each other with a passion. The Saudi's, if they had to, would suck up to China....

Thu, 01/15/2015 - 20:12 | 5667618 robertocarlos
robertocarlos's picture

The USA could always take over SA and make it the 52nd or 58th State.

Thu, 01/15/2015 - 19:51 | 5667516 InvalidID
InvalidID's picture

 

 Yeah, please everyone buy gold and silver. When you come looking for me to buy food (like beef or pork) bring as much as you can carry.... Cause yeah, I'll be dealing with strangers in the first 6 months or so. LMAO

 

 You wanna invest in something solid to carry you through? Invest in a community of like minded folks who have skills to get through. You aren't an island, you aren't in a vacuum, and if you walk up my drive with a bunch of PMs you won't be alive to talk about how you saved up.

Thu, 01/15/2015 - 19:58 | 5667538 Theta_Burn
Theta_Burn's picture

Thanks for the warning..

But if I had instead a flash drive with digital currency would that get me some pork chops?

 

 

Thu, 01/15/2015 - 19:57 | 5667544 InvalidID
InvalidID's picture

 

 Well yeah! I mean, digital currency changes ever.... Wait a minute...

Thu, 01/15/2015 - 20:01 | 5667564 whotookmyalias
whotookmyalias's picture

I'll trade you a brick of .22 LR for a night's sleep, warm shower, and some rice & beans to go.

Thu, 01/15/2015 - 20:05 | 5667585 InvalidID
InvalidID's picture

 

 See, now that's useful. But not until after the dust has settled a little bit. Like I said, 1st 6 months or so I wouldn't deal with anyone I didn't know. Why take the risk ya know?

Thu, 01/15/2015 - 21:43 | 5668111 logicalman
logicalman's picture

So, you think it's a good plan to give valuable ammunition to someone you don't know you can trust?

I don't think I'd be sleeping, and I rather be smelly and hungry.

 

Thu, 01/15/2015 - 20:26 | 5667690 InvalidID
InvalidID's picture

 

 To the guys that are butt hurt about the above comment... If you can't wear it, sleep in it,  eat it, or defend yourself with it; it needs to be reconsidered as a 'prep' item. Gold will be great, a few months after a collapse (that likely won't come, and if it does you'll likely die anyway) but in the initial few months you're gonna need more than some shiny.

Thu, 01/15/2015 - 20:02 | 5667560 oddjob
oddjob's picture

That's your big payoff...a lineup of troglodytes to purchase pig anus, just wow.

Thu, 01/15/2015 - 20:08 | 5667606 InvalidID
InvalidID's picture

 

 Yep, pig anus will be a big seller among the troglodytes. I'll stick with ribeyes and ham though. You know why? The one thing everyone needs is food. You produce food now, you have a market. You produce food after a collapse (assuming you can hold what's yours) you'll have a market.

 

 Same as it ever was.

Thu, 01/15/2015 - 21:46 | 5668124 logicalman
logicalman's picture

You can fix shit and build shit?

I want you on my side.

Personally, I can fix shit and build shit.

 

Fri, 01/16/2015 - 11:57 | 5670413 InvalidID
InvalidID's picture

 

 Exactly!

Thu, 01/15/2015 - 21:01 | 5667876 dirtscratcher
dirtscratcher's picture

".........and if you walk up my drive with a bunch of PMs you won't be alive to talk about how you saved up."  -----InvalidID

 

But, on the other hand, if you come to my place with some of your stack, I'll sell you some food (beef, pork, lamb, eggs, milk, cheese, veggies) for hard assets. Hard and shiny assets that I can add to my stack. [All transactions done under heavily armed security]

Thu, 01/15/2015 - 21:10 | 5667920 post turtle saver
post turtle saver's picture

people who are buying PMs to get them through the Great Apocalypse are morons...

- clean food

- clean water

- fire and shelter

- sanitary supplies (never seen a run on gold at the supermarket but sure as fuck have seen it for toilet paper)

- medicines (OTC and prescription... got a bad ticker? diabetes? arthritis? septic wound? that is sad, sad for you)

- alcohol of all kinds, for fuck's sake (and tobacco, and firearms... there's a reason all the fun shit is so heavily regulated)

- tools & steels

- coffee and tea

- hard candy

- spare glasses (you're all a buncha computer nerds or you wouldn't be here, good luck not being able to see)

- seeds

- fishing tackle

- duct tape & electrical tape

- baking soda & vinegar (didn't think of that combo, did ya? keeps well too)

- sewing & knitting kits and thread & yarn to go with it

 

I could do this all day and I'd still have stuff to add before I started worrying about having fucking gold and silver on hand...

Thu, 01/15/2015 - 21:47 | 5668138 logicalman
logicalman's picture

If you have everything on your 'before gold and silver' list, why not finish the job and get some?

 

Fri, 01/16/2015 - 12:07 | 5670455 InvalidID
InvalidID's picture

 

 ROI... Simple economics states I can get useful items for cheaper today than I can get gold and silver for. A real ax is going to be worth more than the current equivalent of silver at that point. A pound of tobacco is going to be worth an awful lot. 190 proof grain alcohol? Yeah, that's gonna cost ya. All the cookware you own isn't suitable for cooking on a fire long term, I've got some cast iron over here that's worth it's weight...

 All the things I can get now for cheap, or get the precursors for even cheaper, will have a much higher value later. Don't just prepare for survival, invest in it. Again, assuming there is a crash and I live through it. If not, I'll still drink the moonshine, smoke the tobacco, cook dinner...

Thu, 01/15/2015 - 19:57 | 5667548 Soul Glow
Soul Glow's picture

Long fortification.

Thu, 01/15/2015 - 20:01 | 5667558 disabledvet
disabledvet's picture

Might need a dome over that thing too...

Thu, 01/15/2015 - 23:16 | 5668521 DanDaley
DanDaley's picture

Fixed fortifications are a monument to the stupidity of man. G. S. Patton

Thu, 01/15/2015 - 19:54 | 5667531 KingOfMilwaukee
KingOfMilwaukee's picture

Anyone who thinks gold will protect them from government is mistaken. The government knows who owns what, when it comes to gold. They successfully confiscated much of it in the 1930s without the aid of the internet and NSA. It would be easier now. If you think "I am safe with coins but am unsafe with GLD", I can say you are probably not really safe with either. More safe with the metal, but not by as much as you may think. 

Plus, the dollar with strengthen more if the globe drops off a cliff and depresses. Gold actually dropped at the beginning of 2009 to the tune of 20%+ because people will pile into the dollar more than they will gold.

I am holding intermediate Treasuries and will shift to gold once rates go negative and nibble at gold at $1100 and buy large when gold hits under $999. Which it will. Guaranteed.

 

 

Thu, 01/15/2015 - 20:06 | 5667584 jcaz
jcaz's picture

...And where are you holding those Treasuries?

"Uh.............."

Exactly.

Wake the fuck up.

Thu, 01/15/2015 - 20:13 | 5667629 Winston Churchill
Winston Churchill's picture

I'm investing in hookers and blow, the rest I waste.

Thu, 01/15/2015 - 20:20 | 5667660 pickupthatcan
pickupthatcan's picture

My best long term investment is 2000 rolls of toilet paper.  I shit you not.  I'll be King of Bartertown, bitches.

Thu, 01/15/2015 - 20:28 | 5667691 Winston Churchill
Winston Churchill's picture

From experience, in the third world long ago. there is much worse than living without TP.

I don't think thats going to work out the way you think.Might get you laid,but not much more.

Good luck.

Thu, 01/15/2015 - 21:01 | 5667871 Consuelo
Consuelo's picture

Huggies disposable wipes.   The large 1100 ct. box from Costco when they go on sale.   They stack nice & neat and the boxes are heavy duty, plus they will last a long time.  Now there's something that's as good as gold in a pinch, when there's no shower and you need to clean up some.   I was told by a friend who did some time in the Gulf, that over almost anything else besides some good food, disposable wipes are what he wishes he had.

Fri, 01/16/2015 - 00:56 | 5668864 PrintemDano
PrintemDano's picture

Tug McGraw is that you?

Thu, 01/15/2015 - 20:09 | 5667605 SumTing Wong
SumTing Wong's picture

I traded what little gold I had for the Belarussian babe. She ran away with it, but it was worth it.

STFU already. Most of us knew well enough to buy with cash or to sell a firearm for gold instead of going through an NSA-approved dealer. I just wish I still had some gold left. I was walking over my 15 acres when it slipped out of my pocket. Good luck finding it. If you do find it, I'd love to see it one last time. 

Thu, 01/15/2015 - 20:17 | 5667623 LawsofPhysics
LawsofPhysics's picture

Don't overthink this asshat.

Allow me to simplify it for you.

When fraud is the status quo, possession is 100% of the law motherfucker.

That applies to any asset of real value you stupid fuck and the tribe that you will need to protect it all.

Tell me, you ignorant piece of shit, is your tribe in order?

Trying to re-write history? They didn't conficate shit. (how's that most recent "confiscation" in Connecticut going?)

You sound like just another fool looking at indices and quoting the listed "value".

Dumbass.

Thu, 01/15/2015 - 20:54 | 5667846 noben
noben's picture

And what % of the Law is possession, when a legal system IS allegedly observed?

"9/10ths", you say?

There ya go: Possession is 90% to 100% of any prevailing system. Suggest you hedge accordingly.

Thu, 01/15/2015 - 20:33 | 5667728 kchrisc
kchrisc's picture

It is about having more OPTIONS.

Those without hard assets, especially gold and silver, will have many fewer options.

Those also with steel and lead will have even more options.

So people should get out of "paper," and into hard assets that provide better options.

The banksters need to repay us.

 

Those with only Zionist bankster notes will have two options: TP or burn for heat.

Thu, 01/15/2015 - 21:07 | 5667907 Consuelo
Consuelo's picture

No, 'They' most certainly did NOT 'confiscate much of it'.   A few thousand scattered 'kooks' with physical metals are not on the menu.   Your bank account, retirement, savings, GLD, SLV, etc., however, are easy & fast pickings with little work required.   Include safety deposit boxes in that calc. as well.

 

 

Thu, 01/15/2015 - 21:49 | 5668145 logicalman
logicalman's picture

I have a jacket for you.

Buckles on the sleeves and back.

 

Fri, 01/16/2015 - 11:57 | 5670410 GoldRealist
GoldRealist's picture

King,

You simply do not understand this article at all. Gold coins would be worth something, and the GLD paper would be completely worthless. Eventually guns and ammunition would be worth the most, as with those one could obtain other stuff. And given your wisdom on paper, I hardly think your guaranteed gold price prediction is worth much.

Thu, 01/15/2015 - 19:55 | 5667532 Winston Churchill
Winston Churchill's picture

Odds are ,you won't live to regret it, so there is that.

Thu, 01/15/2015 - 19:55 | 5667534 economicfreefall
economicfreefall's picture

Gold has history on its side while silver has the past, present and future on its. Good luck making iPhones, flat screen TVs and solcar panels without silver. Gold and silver miners could also be an option if u like paper...just get it DRS so it's yours!

Thu, 01/15/2015 - 19:57 | 5667540 Soul Glow
Soul Glow's picture

gold bitchez

Thu, 01/15/2015 - 20:05 | 5667552 LetThemEatRand
LetThemEatRand's picture

Real life lesson in paper versus plastic.  I've had my identity stolen.  $10K plus later, new bank accounts, new debit cards, etc, I'm reminded that those 1s and 0s are very easily transferred.  Getting it back was a pain in the ass of course (I did), and that probably only happened because I was a sucker and signed up for some gold protection credit bullshit on my checking account (interesting irony that banks use "gold" and "platinum" to refer to high end products they sell).  Glad I was a sucker this time.  But I'm never using a debit card again except to withdraw cash.  

And as an aside, you can't eat gold, but you can eat with gold.  Ask any rapper from the 90's.

Thu, 01/15/2015 - 20:00 | 5667557 coast
coast's picture

Did anybody notice the nasdq numbers today?? 

It ended at 4572.66  it was down exactly 66.66

(thats alot of 6's)  :-)

Thu, 01/15/2015 - 21:05 | 5667892 fuu
fuu's picture

six of the little buggers

Thu, 01/15/2015 - 20:02 | 5667562 Cannon Fodder
Cannon Fodder's picture

Here is what I still don't understand about holding gold coins. Ok - so the dollar collapses. That nice shiney Krugerrand is now worth $10k.... How do I use it? Lets say the government has confiscated gold like they did in the past. Or they have outlawed exchanging gold for cash. It becomes an illiquid asset doesn't it? If I run the risk of 10 years in jail for coing down to the coin shop and wanting to exchange it for cash - well them I'm stuck with it. If I want to take my coins with me to some other country, then I still have to get through the airport screener with 50 gold coins.

I'm not criticizing the idea of PMs, I just don't understand how they are going to work in a SHTF scenario as a store of wealth which can't be used - thus not really wealth at all.

Thu, 01/15/2015 - 20:10 | 5667607 spinone
spinone's picture

Thre will be a thriving black market for necessities, and it will accept PM.

Thu, 01/15/2015 - 20:13 | 5667625 SumTing Wong
SumTing Wong's picture

Oh, newbie dumbass...

You have the food and weapons for when SHTF. The gold and silver is a seed for whatever we get on the other side. If you are planning on gold and silver getting you through SHTF, you are sincerely and totally fucked. If you have all the TP you need, a cellar full of food, a garden you can defend, and a couple of animals, you might make it. If you have a community around you thinking the same way, you are in better shape. Then you have the PMs for starting over. There will be all kinds of land and useful assets to be had for a song when the restart commences.

Thu, 01/15/2015 - 20:44 | 5667799 Cannon Fodder
Cannon Fodder's picture

Well we all have to start somewhere, so probably guilty as charged. Good point about PMs not for use during, but on the other side of SHTF periods.

Thu, 01/15/2015 - 20:17 | 5667648 LawsofPhysics
LawsofPhysics's picture

Do not feed the NSA trolls.

Thu, 01/15/2015 - 20:41 | 5667775 Cannon Fodder
Cannon Fodder's picture

Not a troll, just an honest question. I ask only to learn.

Thu, 01/15/2015 - 21:08 | 5667902 fuu
fuu's picture

After 64 weeks you aren't out of the elementary school level material?

Thu, 01/15/2015 - 22:09 | 5668225 Toronto Kid
Toronto Kid's picture

Okay, I'm assuming you were paying attention when the average Russian was desperate to spend their Ruble less than a month ago?  My point - usually, us lowlife scum get zero notice when the currency's value hits zero.  We're out there at the local supermarket trying to desperately spend our savings before some jackass in power reduces all those years of putting a little aside to a bad dream.

But the fuckers can't take away the gold.  And if they come for it, you can always bury it under a tree, 3 miles away.  10 years later when things settle down some, you can unearth it.

But as to what value they hold in shtf, go to ferfal.blogspot.ca  He does not recommend flashing the coins during shtf.  Nope.  In that case you want old gold jewelery you can sell for groceries.  He's got a book.  Go read it.

Fri, 01/16/2015 - 00:02 | 5668707 bluskyes
bluskyes's picture

I've always thought that some heavy 24 karat gold chains would be nice. Links are easily removed, and traded.

Thu, 01/15/2015 - 20:02 | 5667571 darteaus
darteaus's picture

"When fiat currencies fail, one of the only things of value left standing will be hard assets that are needed by individuals for everyday needs."

And the money accepted to purchase those things of value

Thu, 01/15/2015 - 20:07 | 5667591 whotookmyalias
whotookmyalias's picture

"And the money accepted to purchase those things of value"  Yeah everyone forgets that part.  I'll go rolling into town with a couple chickens under my arms and a goat on a leash.

Thu, 01/15/2015 - 20:26 | 5667684 hedgeless_horseman
hedgeless_horseman's picture

 

 

Goat leash? Hardened steel cable at a minimum. Another hard asset!

Fri, 01/16/2015 - 11:46 | 5670340 whotookmyalias
whotookmyalias's picture

Good point, can't be too careful with goats in the future.  Maybe if it's a she, I can rent her out by the hour.

Thu, 01/15/2015 - 20:03 | 5667574 The Devil
The Devil's picture

As seen on Twitter: Mario Draghi asked about inflation and fixed income https://twitter.com/Neil_Irwin/status/555802524146757634

That time Mario Draghi lost his inheritance thanks to the inflation of the 1970s.

 

 

Thu, 01/15/2015 - 20:06 | 5667581 Fix It Again Timmy
Fix It Again Timmy's picture

I've got some Polish bonds from the 1930's - will ALL that accrued interest, I'm probably RICH as hell....snark, snark....

Thu, 01/15/2015 - 20:09 | 5667604 Fix It Again Timmy
Fix It Again Timmy's picture

In a SHTF scenario, if you have gold coins and someone has a SURPLUS of a physical commodity that you desire, you can bet your ass that a transaction will occur just as it has for the last 5,000 years - That's what gold will buy 'ya......

Thu, 01/15/2015 - 20:09 | 5667609 F0ster
F0ster's picture

Ultimate hard asset = A nice bluewater sailboat with solar panels, water maker, PMs, dry food, hot wife and charts to the islands...

It's 5 O'clock somewhere!

Thu, 01/15/2015 - 20:31 | 5667709 hedgeless_horseman
hedgeless_horseman's picture

 

 

And a nickel plated .50 BMG.

Thu, 01/15/2015 - 21:15 | 5667956 mkkby
mkkby's picture

One of those things doesn't match the others...  I assume the wife is only there so you can throw her overboard in deep water.

Thu, 01/15/2015 - 20:11 | 5667620 Ariadne
Ariadne's picture

If you aren't holding it, you don't own.

Thu, 01/15/2015 - 20:12 | 5667627 economicfreefall
economicfreefall's picture

I agree that food is pretty vital, but it might be nice to keep some wealth beyond what you can eat. Plus most food goes bad. Precious metals should be in there in the mix at the very least.

Thu, 01/15/2015 - 20:17 | 5667649 blindman
blindman's picture

" everything, musical, refers to a smooth flat
surface and a straight line, even if "only"
in principle.", he said. there are, and will
always be, many opportunities there.
.
anyway poems^tm

Thu, 01/15/2015 - 20:17 | 5667652 kchrisc
kchrisc's picture

If you don't have it, you don't got it.

The banksters need to repay us.

Thu, 01/15/2015 - 20:27 | 5667694 db51
db51's picture

I own 700 acres of farmland free and clear.  When SHTF, the government can confiscate ALL of it...including any stored grain etc by Marshall Law.    All they need to confiscate the land itself is raise taxes high enough that I can't pay it....If Shit ever does hit the fan....we're all totally fucked.   Hopefully Lord Blankfein and Janet can keep this thing going long enough for my kids and grandchildren to live out their lives.   

Thu, 01/15/2015 - 20:37 | 5667750 WillyGroper
WillyGroper's picture

Start at ZBig-1971-to tectonic weapons. Oh hell, read it all. Clinton sold 'em to China.

http://exopolitics.blogs.com/peaceinspace/2009/12/haarp-the-space-preservation-treaty-planet-earth-as-weapon-target-by-leuren-moret.html

It's bigger.

Think tunnels & Maslow.

Thu, 01/15/2015 - 20:58 | 5667862 Cannon Fodder
Cannon Fodder's picture

That is what I have always worried about with the idea of thinking I "own" land... really we just rent it as long as we have to pay taxes on it. My thought is to have just the bare minimum land so as to minimize the tax requirements. And hopefully have enought fiat cash on hand which they will demand for taxes.

Thu, 01/15/2015 - 20:37 | 5667741 skbull44
skbull44's picture

Toilet paper.....gotta have it!

 

http://olduvai.ca

Thu, 01/15/2015 - 20:37 | 5667756 WillyGroper
WillyGroper's picture

Heard of a bidet?

Much more sanitary.

Thu, 01/15/2015 - 21:16 | 5667962 skbull44
skbull44's picture

Dependent on running water...

Thu, 01/15/2015 - 20:45 | 5667800 runswithscissors
runswithscissors's picture

planning to "spend" my assets a few grams at a time

 

Thu, 01/15/2015 - 20:56 | 5667825 Joebloinvestor
Joebloinvestor's picture

C'mon, if a prolonged brown out (short of war) occurs, then it will be back to checks and "flimsy" (credit card paper trail), or at worst having to carry a bag of coins.

Then there is the barter system.

Prolonged halt in society will bring fractional gold and silver trade with open carry public everywhere.

Stability will happen when they base the money system back on pm's and instill trust.

Buy a good generator.

 

Thu, 01/15/2015 - 20:50 | 5667827 847328_3527
847328_3527's picture

We're sinking deeper into a deflationary depression which will be followed by serious inflation my financial advisor says. I think he's right after reading "When Money Dies."

Thu, 01/15/2015 - 21:22 | 5668001 lordbyroniv
lordbyroniv's picture

WARHOLS !!!!!!!!!!!!!!!!!!!!!!!11111111111..................BITCHEZ.

Thu, 01/15/2015 - 22:26 | 5668296 VWAndy
VWAndy's picture

Tools and skills. A still could be the best investment ever.

Fri, 01/16/2015 - 00:04 | 5668714 Bemused Observer
Bemused Observer's picture

Keep cash on hand, it will be used for awhile. But keep small cash, nothing over 20$. When banks get cleared out, much of it will be from ATM withdrawals. In 20's. Your local economy will be flooded with 20's, and change will run out quick, meaning everything you buy will end up costing you at least 20 dollars. Unless you have exact change.
Gold and silver of course, but that's for the future, when we get a reset. For now, use the fiat for as long as you can, keep the good stuff for later.

Fri, 01/16/2015 - 01:38 | 5668961 MEFOBILLS
MEFOBILLS's picture

Tylers, please describe the fiat rather than just bandying the term around.  It does a disservice to newbies who are trying to understand money.

There is law based fiat, such as what Rome had from 700BC until around the second Punic War.  There was law based fiat in Greece after Solons reforms.  There was a pretty good law based system from 1100 to around 1400 in England that used Talley sticks.  Franklins Colony had a good credit system that paid down principle at 1/8 intervals without an exponential function.

In the upper middle ages, a craftsman could earn enough for a family of four with about 2 months of wages.  This included owning a reasonably good home and having meat every day.  Granted there was land problems, but the money system worked well enough that people could keep a good portion of their output.  With 2 months of wages paying for a family for a year, they had significant amounts of time off, and they used it to volunteer and have a gift economy.  We are enormously more productive now, yet have less free time than people of the middle ages.  We suck, and it is because we are being harvested by our money system.

In the Hanseatic league Government taxed the gold out of supply, melted it, and then re-issued.  This would be fiat law based money, not credit, and forced into circulation by law.  Real money is always law based fiat.  In the beginning of Venice's economy, they did something similar by making gold current through forcing it into their State Bank, and then spending it on wages.

The FIAT that you are constantly whining about is called BANK CREDIT.  It is really private bank credit that attaches law for its right to issue.  Today, for public money, Government's issue bonds (debt instruments) to trade for Bank Fiat.  This makes government subservient to private bankers, and hence cannot easily follow the political will of the people.

Bank credit, whether formed with public debt or private debt, cannot and does not mirror its debt instrument.  Bank Credit as money cannot vector back to its debt instrument perfectly because of various banking maneuvers; Fraud is baked into the cake as part of system design.  FYI Bank Credit, as all credit does, should reflux to the ledger for destruction.

Gold also has lots of problems as history abundantly proves.  Bankers allow Gold to pay their private credit but not vice versa.  This helps them grab gold out of the supply.  Floating money like Gold should only be recalled with taxes (not paying bank credit), and fiscal policy usually does not understand this.

 If you are going to use the term FIAT, then describe the fiat's properties.  Otherwise you are programming your readers to have a knee jerk reaction.

Law based fiat is a blessing to the population.  It can flex to the needs of the economy.  It can be created without rents as part of its design.  

If humanity is herded back into a banker metal money system, and its inherent inflexibility (all economies have a S shaped output mostly due to seasons), then we cycle back to a known failed system.

Politicians and many economists don't know things, because of banking usury flows that then fund propaganda and pervert school curriculum.  

In my area, if we have a crash, I will start up a mutual credit system that has proper contract law, and I can guarantee people will use it.  People want to work and trade their output with each other. Humans evolved to work and trade with each other... this is the ultimate and real guarantee in life, it is not shiny metal.

If government fails its duty, due to usurious usurpations, we have the power to band together and do things locally.  People banding together in common cause - is a very hard asset.

Fri, 01/16/2015 - 12:28 | 5670552 InvalidID
InvalidID's picture

 

 You sir, win the interwebz today. Excellent post!

Fri, 01/16/2015 - 03:18 | 5669098 Zero Point
Zero Point's picture

So fucking sick of these "experts" saying we need water filtration.

BOIL your water. Most portable water filtration systems are completely hopeless, and unreliable. Evwn my 7 stage RO filter I use in my home takes constant maintenance.

In almost any scenario where you are drinking water from natural sources, boiling (and letting the water stand overnight) will eliminate danger BETTER than any of these cheap shitty water filters I see marketed.

Unless you are trying to remove radioactive waste, boiling will work. If you're trying to remove fallout with a fucking lifestraw. Good luck to you.

Fri, 01/16/2015 - 03:52 | 5669141 dojufitz
dojufitz's picture

I'm gonna get container loads of hair extensions......

..............once they all get scalped........

.........people are gonna be screaming for em......

Fri, 01/16/2015 - 03:51 | 5669142 dojufitz
dojufitz's picture

I'm gonna get container loads of hair extensions......

..............once they all get scalped........

.........people are gonna be screaming for em......

Fri, 01/16/2015 - 03:53 | 5669143 dojufitz
dojufitz's picture

I'm gonna get container loads of hair extensions......

..............once they all get scalped........

.........people are gonna be screaming for em......

Fri, 01/16/2015 - 03:54 | 5669144 dojufitz
dojufitz's picture

Jesus 3 times that came up?

Fri, 01/16/2015 - 06:43 | 5669297 CHX
CHX's picture

is a paper fiat bill a hard asset? In the time druing and just after a collapse, some hard fiat cash might still come in handy... But other than that, all fizz. More agNau, thank you.

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