What happens if the FED goes under?

SoundPoint

(Considering if the FED's bailout of Bear Stearns and possibly other institutions fails)

Would metals, especially Gold, Silver, and Platinum coins be the best investment vehicles?

SoundPoint

rgCoinGuy

Our kids will be learning Chinese?

GFourDriver

Aint gonna happen!

charley

Do we not have the answer,considering the Fed,in its' current financial position, is already "under"?Respectfully, John Curlis

cladking

It's impossible for the FED to fail and the currency can go under only
in dribs and drabs. While this won't happen, if it approached having
no value (ie-greater than 95% loss from current value) in a short per-
iod of time the government would issue a new currency basec on some
standard.

This would be used only as an interim device until stability could be re-
stored in all probability.

If you look at the economy closely you can already detect signs that the
economy is becoming more stable. As it loses value it makes our compa-
nies more competitive and reduces the negative balance of trade. There
is still a way to go though.

BECOKA

I would imagine they would start selling all that black gold we are hording.

LALASD4

The FED won't go under unless the U.S. Arm Forces disappears.

dbldie55

For this latest in the long line of off topic doom and gloom scenarios, I would think lead would be the best investment.

charley

cladking, I am VERY interested in the "impossibility" portion of your thoughtful Post. Is the reference related to asset position,current monetary standard, debt assignment, negative budget position, or the implied duties of the Federal Reserve? Respectfully, and Certainly Without Malice, John Curlis

storm888

"It's impossible for the FED to fail and the currency can go under only in dribs and drabs. "

////////////////////////////////////////////////////////////////////////////

That is correct.

BUT, the Federal Reserve is NOT a federal agency, AND it does NOT have any "reserves."

What it does have is the ability to "buy" $1-million in US-currency from the Federal Government, for approximately $290.00.

ziggy29

Good God, how many apocalyptic predictions can we possibly have?

LordRJ

I'm not worried about the Fed.....BUT I am praying for the Male Interns Safety if Hillary gets elected......payback time Billy Boy.....

charley

Thank You, storm888Respectfully, John Curlis

commoncents05

Geeze, you guys are all worse than Chicken Little. The sky is not falling, so relax.

-Paul

ziggy29

<< <i>Geeze, you guys are all worse than Chicken Little. The sky is not falling, so relax. >>

I'm convinced that some day, the Chicken Littles who say we're doomed every time a financial crisis crops up will be right.

The problem is that they have cried wolf so many times that it's hard for me to believe them. Plus I hate the idea that they are trying to talk us into deep recession or worse.

Maybe they'll be right this time. But history and the odds say not. Still, I'm diversified and ready for what comes, which is the prudent thing to do...but I'm not going to spend my entire investing life being an uberbear constantly pedaling apocalypse.

derryb

When they're hoarding money they are the rich guys. When they are lossing money they are YOU!

cladking

<< <i> Is the reference related to asset position,current monetary standard, debt assignment, negative budget position, or the implied duties of the Federal Reserve? Respectfully, and Certainly Without Malice, John Curlis >>




The FED can not only issue currency for any purpose but they
are established by Congressional fiat. Unless Congress changes
the law then the FED will continue.

charley

Thank You, cladking. The issue then, appears to be definition of law and not definition of logic. Respectfully, John Curlis

SoundPoint

<< <i>Good God, how many apocalyptic predictions can we possibly have? >>




My apologies - this thread shouldn't have been about a FED failure,
(even though they got to maintain a balance sheet too), I was
really trying to determine the best investment vehicles in the
unlikely event of a FED failure.

SoundPoint

rgCoinGuy

Bread, water, and rice

charley

Respectfully, you made a very sound point with your OP, SoundPoint. I don't think there is a need for apology for an interesting topic. I didn't interpret your Post as "apocalyptic". Consider that those that may have interpreted as such, are still acting "prudent". Respectfully and With Equity, John Curlis

storm888

"Bread, water, and rice ..."


//////////////////////////////////////////

Those folks who are afraid to buy PM ETFs probably will not be interested in any "paper water."

.............................................

from ETF Trends May 2007.

Water has become so scarce that it is now being called a commodity- and there are even exchange traded funds (ETFs) that give investors exposure to it. Companies are hoping to take advantage of shortages in clean water. John Waggoner for USAToday reports there are various reasons water is an investment opportunity, including the fact 450 million people in 29 different countries suffer from water shortages. Also, 20% of people in the world lack access to safe and clean drinking water. By 2025, it is projected that 28 billion people will live in areas with scarce water sources.

One way to play this drought is with the PowerShares Water Resources (PHO) which has assets reaching $1.7 billion in just 2 years. The companies in this ETF are involved with the treatment and technology of potable water. Another liquid ETF is the Claymore S&P Global Water Index Fund (CGW). CGW follows the performance of 50 global equity securities from developed markets of companies that are involved in water-related businesses.

While you are fishing for an investment in water, use caution as there is no lifeguard on duty. Water is a specialized sector so these do your scouting and make sure it fits in your portfolio.

blu62vette

I doesnt. Period. If things got that severe worry about yourself not the bank.

Moki

Pray that the Second Coming is not too far off . . .

Coxe

<< <i>Pray that the Second Coming is not too far off . . . >>



The Fed met twice in the past week already.

morgansforever

How low can the Fed go? It's at 2.25% now, lowest ever I believe.

What happens when it's at 1%, and they slash it. Can it be lower than 0%?

TwoSides2aCoin

Cats will be food and so will dogs.

rgCoinGuy

Japan was at 0% for like 10 years I believe (I am sure I will be corrected, but something like this) and it was NOT good for their economy. I however, have been tongue in cheek on my answers to this thread and do not expect us, as the worlds only real superpower, to actually have a doomsday scenario. It would be helpful if the federal government would let the pockets of problems work themselves out though and take their hits instead of pretending this is China or Russia and we are socialists and should all pay for big companies or individuals stupidity. Just my real 2 cents.

rgCoinGuy

<< <i>Cats will be food and so will dogs. >>

seemyauction

rgCoinGuy

<< <i> >>



Hows that gonna taste boiled?

bidask

<< <i>How low can the Fed go? It's at 2.25% now, lowest ever I believe.

What happens when it's at 1%, and they slash it. Can it be lower than 0%? >>

We become like Japan.

morgansforever

<<We become like Japan.>>

I get the feeling thats not good.

RWB

What happens if the FED goes under?

Think of the RMS Titanic, all alone in the cold north Atlantic
Think of it hitting an iceberg.
Think of the ship sinking.
Think of the Captain ordering everyone to abandon ship.
Think of discovering the lifeboats were cut from the design to save 0.005%.
Think of hypothermia, drowning…. Have a nice day!

Realistically, the Fed is the Atlantic, not the ship. But your retirement, savings, investments are gone as are those of nearly everyone else, rich and poor – you’ll work until you drop to pay for day-to-day needs. And nobody wants gold or silver – gold bugs are for eating; people want necessities.

CarlWohlforth

What happens if the Fed goes under? I pull the trigger on buying a nice ranch in a hard to find location with good water, reliable weather and understanding neighbors.

eCoinquest

CarlWohlforth, I AGREE TOTALLY!

moonshine

yes, rice, beans, water, warm clothing if you are in cold country, tobaccy if ya smoke, booze if ya drink, commodites for children, babies, meds for the elderly and sick. A garden to plant in and big strong men to make it all come together. You will also need a plan, as you can't have chaos in your group, because that is what it will be. You will need 'border patrol' for your own property, as there will be complete mayhem and roves of wandering starving dogs that will attack on site.

57loaded

<< <i>Geeze, you guys are all worse than Chicken Little. The sky is not falling, so relax.

-Paul >>



the ceiling is lower, though

roadrunner

If the FED goes under we get our country back to begin building it honestly one brick at a time. I recall reading a article a few years back stating that the ammendment creating the FED was never fully ratified by enough states to make it legit. I'm sure that discussion evokes lots of emotion as does a similar one stating that the mechanism to tax was never fully authorized.

With the FED gone, you can bet that usable commodities (food, ammo, wood, precious metals) would certainly be a better store of value than paper currency or OIU's. Contrary to after-dinner chit chat, gold and silver would be of good value just as they were during times of chaos over the past 5000 years.

roadrunner

morgansforever

<<What happens if the Fed goes under? I pull the trigger on buying a nice ranch in a hard to find location with good water, reliable weather and understanding neighbors.>>

I'm with you. Montana, Idaho someplace remote. What do I do with my coins, gold, silver?

coolest

<< <i>I'm not worried about the Fed.....BUT I am praying for the Male Interns Safety if Hillary gets elected......payback time Billy Boy..... >>



That would make Billy the only President to also be a first spouse.

bluespaceant

DustyCoinbox

<< <i> What do I do with my coins, gold, silver? >>



Toss 'em of course - the collapse of the federal reserve would wipe out any industry (no way to borrow), and with it any use for PMs (other than maybe log cabin door stops, etc.)

morgansforever

FRN's, I would think, would be a little rough. I'll use em to start a fire.

Mercfan

<< <i>

<< <i>Pray that the Second Coming is not too far off . . . >>



The Fed met twice in the past week already. >>

mrearlygold

<< <i>Our kids will be learning Chinese? >>



Having the kids learn Mandarin would be a smart thing no matter what happens to this country.

But many seem to speak an "inner city" language. The type that will get them nowhere.

Far as the question from the OP, IF a Ron Paul type leader were to emerge ( I don't think the power structure would allow it as evidenced by this election ), there would be a slashing of the types of socialistic programs this country has cultivated for the last 100 years. That would be a great thing and along with that we would see a return to sound money. One of the other steps would probably be to eliminate the fed whose governors have no consideration for the US Constitution. So that would be a good thing. How so? The world would see America's return to the America they once idolized.

That would result in an economic boom that would be heard round the world. Sound money, free country.....there would be a huge influx of investment because the dollar would become valuable again and because of that the cost of living would go DOWN. That would result in a huge influx of investment, the re-creation of manufacturing of quality products and America would regain it's top spot in the world.

It would be wonderful.

RedneckHB

<< <i>

<< <i>Our kids will be learning Chinese? >>



Having the kids learn Mandarin would be a smart thing no matter what happens to this country.

But many seem to speak an "inner city" language. The type that will get them nowhere.

Far as the question from the OP, IF a Ron Paul type leader were to emerge ( I don't think the power structure would allow it as evidenced by this election ), there would be a slashing of the types of socialistic programs this country has cultivated for the last 100 years. That would be a great thing and along with that we would see a return to sound money. One of the other steps would probably be to eliminate the fed whose governors have no consideration for the US Constitution. So that would be a good thing. How so? The world would see America's return to the America they once idolized.

That would result in an economic boom that would be heard round the world. Sound money, free country.....there would be a huge influx of investment because the dollar would become valuable again and because of that the cost of living would go DOWN. That would result in a huge influx of investment, the re-creation of manufacturing of quality products and America would regain it's top spot in the world.

It would be wonderful. >>




Perhaps after 40% of the US population was eliminated. Since the socialist programs would be eliminated, the 60 million benefitting from those programs will be very angry. An investment in a casket company might work out well.

mrearlygold

<< <i>

<< <i>

<< <i>Our kids will be learning Chinese? >>



Having the kids learn Mandarin would be a smart thing no matter what happens to this country.

But many seem to speak an "inner city" language. The type that will get them nowhere.

Far as the question from the OP, IF a Ron Paul type leader were to emerge ( I don't think the power structure would allow it as evidenced by this election ), there would be a slashing of the types of socialistic programs this country has cultivated for the last 100 years. That would be a great thing and along with that we would see a return to sound money. One of the other steps would probably be to eliminate the fed whose governors have no consideration for the US Constitution. So that would be a good thing. How so? The world would see America's return to the America they once idolized.

That would result in an economic boom that would be heard round the world. Sound money, free country.....there would be a huge influx of investment because the dollar would become valuable again and because of that the cost of living would go DOWN. That would result in a huge influx of investment, the re-creation of manufacturing of quality products and America would regain it's top spot in the world.

It would be wonderful. >>




Perhaps after 40% of the US population was eliminated. Since the socialist programs would be eliminated, the 60 million benefitting from those programs will be very angry. An investment in a casket company might work out well. >>



I believe the numbers of people who benefit from that in one form or another is probably more than that.

Hence, it's already a lost cause as an even greater percentage of the population couldn't even define the concept of freedom.

Bear

Forget the bread and the rice......SOYLENT GREEN!

Three per day per person.

TwoSides2aCoin

I have good recipe for CatChew chicken

roadrunner

As long as your tossing out your gold and silver bars for door stops, you won't mind if I pick them up and give you bricks instead. The bricks would be handier for building, moreso than the PM bars.

Please PM me when that day comes so I can make arrangements.

roadrunner