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PeakOil is You

PeakOil is You

Catalyst for economic collapse

Discussions about the economic and financial ramifications of PEAK OIL

Re: Catalyst for economic collapse

Unread postby Pops » Thu 04 Mar 2021, 13:50:36

diemos wrote:Default would mean a collapse of the financial system as the paper assets vanished. Everyone's bank account, insurance company, 401K, pension plan would vaporize. So I'm quite confident that the balance will be restored through money printing and inflation. Which is why one of my priorities for retirement is to own a real asset like a house that I can live in.

The thing is to know when is when.
RE right now is super inflated from lack of supply and low interest: sellers market big time. Even just a normalizing of supply will likely cause the market to cool, at the least. Lots of people are moving around right now looking for a place to land. As soon as inflation rises, interest will too, baaad for home prices. Lots of delinquent renters and mortgages too, baaad for prices down the pike.

I'm basically half n half, about half my assets in a house and half in cash— in the bank earning nothing. There is nothing available in the immediate area, nothing. A realtor friend says she has never seen such, when a house comes up it is gone in hours, likely selling to realtors, LOL.

This was a house of opportunity, dirt cheap with potential, besides I gotta live somewhere. We have been flipping on the 2 year exclusion but might sell this and take the gain if the gig looks to be up this spring. I'm like you, looking for a retirement place, right now I'm gambling my assets off hoping for some luck.
The legitimate object of government, is to do for a community of people, whatever they need to have done, but can not do, at all, or can not, so well do, for themselves -- in their separate, and individual capacities.
-- Abraham Lincoln, Fragment on Government (July 1, 1854)
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Re: Catalyst for economic collapse

Unread postby Subjectivist » Sat 06 Mar 2021, 14:28:35

Personally I think the catalyst will be the same as it was for Weimer, Germany. Not Hyperinflation per se but the average folks no longer believing their money has any real economic value. Once people lose faith in a fiat currency it degrades to its intrinsic value, and whole lot of our current money supply is electronic 1's and 0's in someone else's computer core. In other words, without faith in its value electronic money has no value at all, you can't even use it for TP like you could old Confederate money in 1866.
II Chronicles 7:14 if my people, who are called by my name, will humble themselves and pray and seek my face and turn from their wicked ways, then I will hear from heaven, and I will forgive their sin and will heal their land.
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