# Deflation: Are You Prepared?



## Ripon

I've been on a couple of forums discussing preparations for almost 5 years now. A little less here and a little more there. When I mention deflation its usually met with "oh hum" I am preparing for hyper inflation. While many nations have suffered hyper inflation (particularly south American and Central American countries - Africa and the like) our nation has never had an inflation rate over 20% and that was short lived. We did deflate once, and I believe that was in the 1920's when we had this little thing called a "Depression' that my parents and inlaws lived through as children. 

It seems to me the world is never going to trust a dictatorship like China, or a bully like Russia, or a mixed conglomerate like the European Union to let any of them be a world's reserve currency. For the duration (some time) the dollar will be it, and its demand just seems to soar and soar despite its over production just a few short years ago. It seems to me inflation is tamed behind a few obvious market blips like eggs and oil. Look at precious metals - new 5 year lows. Look at our beloved ammo, firearms in general, and you have to really start to "wonder" about it. I bought 45 acp boxes (50 round boxes) for $13.99 this week. (Palmetto Sale) I also bought my first ounce of gold this week. I've never had much of the yellow stuff - silver was always my thing. 

There are a few reports of "housing" peaking in areas where its been skyrocketing in CA. I've got a neighbor with a listed ranch who's lowered his price 3x in the last year. There isn't a big market for multi million dollar ranches I know but its a fine working ranch and he hasn't even had anyone out to look in six months. I dare say our beloved dollar is more important to people then our resident "FED" haters could ever imagine. As the world plummets I'm sure we will recess, but I don't think our dollar is headed for much of a collapse any time soon. In fact - just the opposite.

Did you prep for deflation? Its a miserable thing to do - hoard cash. I have a terrible time knowing there is "cash" in the other room when someone starts selling 45 ACP for what I paid for 9mm a year ago.


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## Hemi45

Excellent topic to bring up. I rarely, if ever, hear this discussed.


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## Maine-Marine

it is a interesting topic and an interesting debate. I watched a youtube on it a week ago....


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## Maine-Marine

Here is the question... will silver be a catch all... good for inflation or deflation... (after awhile)

from where it is at now... it can not get much lower


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## Hawaii Volcano Squad

Fed will raise interest rates to encourage inflation. My personal Silver BUY target: $9


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## Medic33

hum, I never thought of this-I guess it couldn't be all that bad prices go down dollar value goes up so gold and silver is down so what didn't you get it in a JIC SHTF reason if that happens wouldn't it still be as valuable?


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## 1skrewsloose

A $20 dollar bill is worth 20 bucks, a hunk of silver worth the same, most, including me are not so sure about. We'll deal with what we are most familiar with. jmo


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## Medic33

is someone offered you a hunk of silver for 20 bucks would you take it?


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## 1skrewsloose

I know little to nothing about silver, or how to weigh it or what the current value is. My point is that folks who paid $20 bucks on something will not likely trade for silver of equal value when they know nothing and have no measuring instruments to calculate if they are getting equal pay or not. We all know what a $20 dollar bill looks like, and what things cost. Just makes things simpler. Carrying paper is a lot easier than carrying gold or silver.


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## Medic33

ok-the way I see it precious metal is going to be like a chunk of dirt in a shtf nobody going to want it. just about like paper money.
now food-clothes-ammo-gas-alcohol-salt -this stuff is viable for trade and will hold value.


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## PatriotFlamethrower

This topic is the most simple-minded, uneducated bag of hogwash I have EVER seen in this forum.

What is everybody talking about? Did ANYBODY ever take Economics 101 in high school or college?

I have PLENTY of comments and FACTS to share, but I honestly don't know where to start.

My only advice is that the participants on this topic should STAY IN THEIR OWN LANE.

I apologize for my bluntness and political incorrectness.

I am stunned, and I will probably regret my candidness later.


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## Hawaii Volcano Squad

Medic33 said:


> ok-the way I see it precious metal is going to be like a chunk of dirt in a shtf nobody going to want it. just about like paper money.
> now food-clothes-ammo-gas-alcohol-salt -this stuff is viable for trade and will hold value.


Sunshine silver/gold bars have a Watermark on the reverse side of their bars that says 'VALID" in blue. (need the decoder vinyl/plastic piece to see it) All bars usually say .999 pure silver and the Troy ounce weight. Easy to prove what it is and what it is worth by googling the spot silver/gold price.


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## Boss Dog

PatriotFlamethrower said:


> This topic is the most simple-minded, uneducated bag of hogwash I have EVER seen in this forum.
> 
> What is everybody talking about? Did ANYBODY ever take Economics 101 in high school or college?
> 
> I have PLENTY of comments and FACTS to share, but I honestly don't know where to start.
> 
> My only advice is that the participants on this topic should STAY IN THEIR OWN LANE.
> 
> I apologize for my bluntness and political incorrectness.
> 
> I am stunned, and I will probably regret my candidness later.


You, regrets!? surely you jest!


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## Maine-Marine

1skrewsloose said:


> Carrying paper is a lot easier than carrying gold or silver.


carrying paper is easier then carrying canned food also... whats your point...

if a oz of gold is worth $2,000 it might be easier to carry then paper


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## Spice

I'll admit I don't really understand all of the various inputs on monetary value; which means I can't predict it worth spit. So I prep for such things by preparing to be as independent of fluctuations as possible. No debt, physical needs met in the short and medium term, systems in place to provide the most pressing needs (food, water, shelter) long term.


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## Slippy

PatriotFlamethrower said:


> This topic is the most simple-minded, uneducated bag of hogwash I have EVER seen in this forum.
> 
> What is everybody talking about? Did ANYBODY ever take Economics 101 in high school or college?
> 
> I have PLENTY of comments and FACTS to share, but I honestly don't know where to start.
> 
> My only advice is that the participants on this topic should STAY IN THEIR OWN LANE.
> 
> I apologize for my bluntness and political incorrectness.
> 
> I am stunned, and I will probably regret my candidness later.


PFT,

I have no clue about Macro-Economics as it relates to currency valuation and/or inflation/deflation or hyper inflation. I hope you weigh in as I'd like to learn more.

Thanks


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## Maine-Marine

PatriotFlamethrower said:


> My only advice is that the participants on this topic should STAY IN THEIR OWN LANE.


you realize since posting you are a participant also....


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## Maine-Marine

search youtube

inflation versus deflation debate


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## Seneca

I've been looking at getting some silver here lately, I found it interesting that it comes in rounds smaller than an ounce. Tenths, quarters and half ounce rounds can also be purchased. Which makes prepping silver somewhat more attractive. I've felt the 1 ounce rounds a 5 ounce bars might pose a problem when trading for smaller less costly items.


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## PatriotFlamethrower

Boss Dog said:


> You, regrets!? surely you jest!


Who are you, and why did you make this comment about me?


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## PatriotFlamethrower

Maine-Marine said:


> you realize since posting you are a participant also....


I've already participated in many of these silver-gold-paper money-inflation-deflation discussions. I've said all I can say about the topic.


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## Maine-Marine




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## PatriotFlamethrower

Maloney is a pretty sharp guy. But since he is in the precious metals business, I am not convinced that he is also an economics expert.


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## Slippy

Boss Dog said:


> You, regrets!? surely you jest!





PatriotFlamethrower said:


> Who are you, and why did you make this comment about me?


PatriotFlameThrower meet Boss Dog,

Boss Dogg, this is PatriotFlameThrower...

:joyous:


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## Ripon

A silver eagle has $1.00 in face value - so no. Silver and other bullions would be like anything else - give me dollars for in a deflationary state. I think it'd have to be really bad for that but isn't that why we prepare? For what is really bad? There are a few high face value low silver content Canadian coins. In fact they've been advertising $50/$50 and things like that at the canadian mint now for some time. You get very little silver for $50 but your coin has $50 (Canadian) in face value - not bad. You have a little hedge on both. My silver coin of choice is a 1980's Canadian Olympics coin - they are .92% Silver, 1 ounce, and have a face value of $20. When silver was over $20 I was buying some at about a $1 over spot. I dare say they'd cost at least $20 per ounce today since that is their face value.



Maine-Marine said:


> Here is the question... will silver be a catch all... good for inflation or deflation... (after awhile)
> 
> from where it is at now... it can not get much lower


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## Ripon

In 2007 a home near mine in CA sold for $349,000. In 2009 after it was foreclosed on the auction price was $115,000. If you don't think that was "deflation" then ask the owner. I dare say you should study the car industry. I recall a dealer in CA running ads in the year 2000 - buy at 1995 prices today. He was elated at the response, people flocked to his store, and learned the 1995 price was actually more than the 2000 year price and the car had and continues to dramatically improve. Cars are remarkably more efficient, provide more features and don't cost all that much more (for the added benefits) that they did years ago. 

Like I've said we notice the obvious (eggs, gasoline, break / milk) but had it not been for a bird flu and idiots demanding so many square inches of bird cage per chicken in a poultry farm I doubt eggs pace inflation much. Adjusted for inflation I think a 1983 gallon of gasoline is suppose to be $5 today - read that somewhere. Its not. And look how much further it takes us?


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## PatriotFlamethrower

Ripon, I just don't have the words.

I will pray for you.


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## Boss Dog

PatriotFlamethrower said:


> Who are you, and why did you make this comment about me?


I am the Boss. You are frequently bombastic and have no shy opinions, right or wrong. I figure you have "Flamethrower" in your screen name for a reason. And, I was just picking at you. lighten up a bit, eh?


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## MisterMills357

Deflation is a concept that most people have trouble grasping, and yes it did occur in The Great Depression. 
And, I think that economic calamity will come to America again.
America has done so many duplicitous things, and has been so dishonest, for so long, that a reckoning seems due. 

When it happens and how it occurs, can be debated, but the "will it happen?", seems doubtless. 
When it does collapse, it can whipsaw up and down, left and right. And a hyper-deflation can be part of it, just like hyper-inflation can be.
I think that America can be torn to pieces by a whipsaw mess. I just don't think that the dollar is on sound footing.:armata_PDT_25:
And, there ain't a single thing that I can do, to change the course that America is on. Because a whole lot has been done already.


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## Hawaii Volcano Squad

Ripon said:


> In 2007 a home near mine in CA sold for $349,000. In 2009 after it was foreclosed on the auction price was $115,000. If you don't think that was "deflation" then ask the owner


A bubble burst is entirely different than deflation.


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## Ripon

Fair but if it was merely a bubble other items would not have declined.

Wages are are a good example. For everything but govt jobs most are taking less unless govt mandated. I dare say the new and cry for $15 hr may be getting pushed by those fearing deflation for its a great way to cause inflation.



Hawaii Volcano Squad said:


> A bubble burst is entirely different than deflation.


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## Ripon

Prices - What Things Cost - 1955

eggs in 1955 were $.63 a dozen.....before the flu bug they were $2. Milk was $.75 a gallon.

Interesting a baseball glove was $10 ... Only half as much as one today


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## PatriotFlamethrower

Boss Dog said:


> I am the Boss. You are frequently bombastic and have no shy opinions, right or wrong. I figure you have "Flamethrower" in your screen name for a reason. And, I was just picking at you. lighten up a bit, eh?


All I can say is.............guilty as charged.

I must have been having a bad day when I read your response.

It's all good, my friend.


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