Before it takes a suitcase full of Dollars just to buy a sandwich - as happened during the German Weimar Republic in 1920 - as a result of debasing the currency by creating excessive credit (liquidity) out of thin air and running the Dollar printing presses night and day, ONLY the hoarding of GOLD and certain precious metals will save your hide...

Once the US Dollar collapses, the Euro will become the International Reserve currency of choice, for a while, that is... However, the certain collapse of the illiquid OTC Derivatives (just like the defunct mortgage backed securities) worth some $450 TRILLION - the yearly GDP of the US is ONLY $13.5 Trillion in comparison - will eventually cause a worldwide financial melt-down at any time between now and the next 18 to 24 months...

http://www.iraq-war.ru/article/144950

It costs 2.4 cents to print a $100 Dollar bill and this is its true and intrinsic value. The same goes for all the other FIAT (Latin for: 'Let it Be') paper currencies...

Expect most banks to go belly up when depositors try to get their money out to buy Gold or items of tangible value: since banks only keep as cash on hand between 10 and 12% of monies deposited, only one customer in 10 or 12 will get a refund. Of course, the Federal Deposit Insurance Corporation (FDIC) designed to deal with the occasional bank failure will be unable to cope in such situation...

http://www.globalresearch.ca/index.php?context=va&aid=6816

The US government will probably declare a State of Emergency and prohibit the ownership of Gold, forcing citizens' holdings to be surrendered, as it previously did in 1933 until December 1974.

So, what to do???

Firstly, realize all the cash you can by selling all that is not essential and change it into Euros to provide some temporary relief from the crashing Dollar. I advised this move on a financial Website about 3 years ago, changed all my cash at US$.95 = 1 Euro and now have a 50% currency gain at $US1.45 = 1 Euro. I also maintained local currency stock trading accounts in Canada and Australia that provided similar currency leverage...

Then, try to find a bank that will provide a SEGREGATED account - one where your money is NOT part of the assets of the bank when it's being liquidated - to keep your funds in a CD rolling over weekly until you assess the next move...

To buy Gold and keep it safe out of Uncle Sam's clutches, here are a couple suggestions:

1) Safely buy, then store your Gold with a reputable vault professional in Zurich, for instance:

http://www.bullionvault.com/

I have already used their services and have no complaint, so far. The buy/sell spread is reasonable, commission is minimal and so is the storage cost...

2) Open an offshore account in a country close-by, perhaps the Bahamas, and rent a safe deposit box. Use Kitco, for instance, for your bullion purchases and deliver the goods yourself while taking a little break from work...

https://online.kitco.com/bullion/completelist.html

3) Buy yourself a quality safe and store Gold and Silver coins for convenient trading, while ignoring any potential declaration of prohibition...

In conclusion, don't wait for the run on the banks to begin, as by then it'll be too late to save your bacon...

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Dear Mr. Sealion
by chestergimli on 03.11.2007 [23:44 ]
What are you going to do when you are sitting there hungry on a pile of gold coins that you can't sell because no one has the money to buy them. I certainly would like to know who gave rocks out of the ground such worth. The bible says that you will throw your gold and silver in the streets. Isaias says that a man is worth more than gold. A man is worth more than all the gold.

Invest in lead and steel
by pfs on 04.11.2007 [00:26 ]
I have.

Free advice
by Gord on 04.11.2007 [00:45 ]
Quote: "Safely buy, then store your Gold with a reputable vault professional in Zurich, for instance."

If you buy physical gold which is stored for you ask to know the name of the refiner and the refiner's registration number of the ingot . If your vault will not provide these then it is likey they store nothing but a paper IOU.

Chester, you use GOLD for BARTERING other goods...
by sealion on 04.11.2007 [04:07 ]
- Chester, you use GOLD for BARTERING other goods, just as the Argentinians did a few years ago: here is a Krugerand for your cow/goat/pig, etc...

- Pfs, commodities, such as steel, lead and even oil will be in a slump, as the demand in the US will have been drastically reduced as a result of the deep recession: see what happened after 1929. The only difference is that the US no longer has the manufacturing capability to pull it out of the hole, since this has now moved to Asia...

- Gord, you can get that with bullion vault. However, I prefer the segregated account and the safe deposit box at a reputable Swiss bank...

Money will feed you - as a matter of fact.
by gmmonko on 04.11.2007 [05:09 ]
By the way everybody should have moved out of the Dollar already. Now it is to late. Buy farmland abroad and get rid of your facist US passports, but even that is to late by now.
In the coming month the US economy will go broke and nobody will be able to move.

Finally the Mexicans will get their country back. What a joke.

I totally agree with you sealion
by iron_clay on 04.11.2007 [08:10 ]
@ chestergimli

The bible says ....

Did you know that when the writers of your quote refered to gold and silver being worthless, that the currency of their day was gold and silver?
Not paper.

Do you think it's possible therefore that the writer was actually saying that money (at this time) would be worthless.

Have you taken a good look at your government issued money lately?

Would you like to inform me as to what government or reserve bank guarantee is on the value of your money notes and coins today?

Gold is a very solid trading commodity that in times such as these and what we are heading into, will have redeemable value when your money is totally worthless.

Sealion is absolutely correct and you have misread the meaning of scripture.

Neal

@chestergimli
by alt-f4 on 04.11.2007 [11:29 ]
"What are you going to do when you are sitting there hungry on a pile of gold coins that you can't sell because no one has the money to buy them."

Did you read the article? Did you give it more than one second's thought? The gold is an alternative to money - not something to
be exchanged for cash after cash has lost all its value.

Here's something you can do with a few ounces of gold if you're hungry:
Take your sock off, put the gold in your sock, then use it has a cosh
to render unconcious some fat-cat and steal his food - like the fat-cats
have been doing to us all through history.

"The bible says...."

Fuck the bible. It's a crock of shit designed to keep you poor, stupid, and subserviant to those who are stealing from you.

GOLD expressed in EUROS is the KEY to the next move...
by sealion on 04.11.2007 [14:54 ]
GOLD expressed in EUROS is the KEY to the next move: here is a chart I have constructed with trends and support lines that shows how close we are to a breakout, probably early next week ...

ht tp://stockcharts.com/h-sc/ui?s=$GOLD:$X ... =116452863

After the price of Gold expressed in Euros breaks out, I expect a free for all and my initial target is $1275.00, which is equivalent to the 1980 high, adjusted for the differential in Dollar and Gold supply during the last 27 years...

Next disaster in line is the SIV for which the big bankers are trying to arrange a $100 BILLION rescue fund to keep the losses off the Balance Sheets. But these and the CDO's are nothing compared to the illiquid $450 TRILLION worth of OTC Derivatives overhang that has NO precedent in history...

How ILLIQUID these OTC Derivatives are? Here is the short answer from Wikipedia:

Over-the-counter (OTC) derivatives on the other hand are not traded on exchanges, so their market prices are not as readily available. During their early development, OTC derivatives such as interest rate swaps were not marked to market frequently. Deals were monitored on a quarterly or annual basis, when gains or losses would be acknowledged or payments exchanged.

Products such as swaps, forward rate agreements, and exotic options are almost always traded in this way. The OTC derivatives market is huge. According to the Bank for International Settlements, the total outstanding national amount is USD 298 trillion (as of 2005)

As the practice of marking to market caught on in corporations and banks, some of them seem to have discovered that this was a tempting way to dress up the books, especially when the market price could not be objectively determined (because there was no real day-to-day market available), so assets were being 'marked to model' using estimated valuations derived from financial modeling, and sometimes marked to fantasies. See Enron.

Are you scared, yet???