EU To fall apart?

If the EURO fails it will be the same as the dollar failing now. So if it does watch out the US banks have alot invested in the EURO and will it will be the start of a major downturn in the world economy if it fails. If that happens price of gold and other PM will skyrocket. If you have paper gold and silver now would be a good time to turn it in to physical.

These guys have a lot of good info on this subject. If you sign up for the free news letter you can read some of their reports without paying for it.

Stratfor

Originally Posted by Kris Kringle

Just a thought here Hopefully someone can answer How much would a Loaf of bread be in Gold? or a Cup of Coffee? 1 Flake?

I could never see us going to a gold standard again there would be no way that I could see paying for stuff in gold.

A starbucks coffie is what $5? Currently a quater minted between 1916 and 1964 is valued at $5.74 worth of silver. So the coffie would cost you a quarter The bread at $2 a loaf would cost you a dime minted in the same year.

Also the gold standard doesnt meanyou pay in gold. Just that the currancy printed by the government is backed by gold not a promise.

Yes germany only sold 60% of thier bond offering this week. They are the strongist market in the EURO. If the EURO falls the world will follow just the same if the US market crashes.

Not sure what it would do MDG. Ijust kow if the economy in EURO zone takes a dive USA is not far behind it. If that happens then it will be just like the german marks after WW2. Will cost you $100,000 for a tank of gas because the dollar as it is wont be worth anything. BUt youll still be able to barter and trade your valuables. Like gold and silver and what not. I saw this on American Guns the other night. The guy was buying a gun collection and paid the guy cash plus 3 oz of gold.

Hyper inflation would follow along with a collapse of the entire global markets and trillions and trillions of dollars would be sucked out of the market in a matter of days and minutes. Our dollar would be worthless and a hundred dollar bill might buy you a loaf of bread. Look at Zimbabwe. There currency collapsed and they had to start printing billion dollar bills I think and it happened so quickly. Glass-stegall and going back to the gold standard is basically impossible to do at this point in my opinion. The price of gold would go to 10,000 an ounce overnight or in a matter of days. There would be a huge boon in the mining industry though which is always good for the scrap industry. I can't see scrap prices falling to pre-2003 prices though. To all of you new scrappers. I can remember the day they turned out the lights on LTV for good. Two years worth of coils sitting to be shipped. They just ran till they couldn't do it anymore similar to whats happening with our government right now. I can remember getting 80 bucks a ton from the yard for torch material. They didn't want it. The yards were stacked with material to the sky no one was buying 44 steel mills were in bankruptcy as of 2002. When they came out of bankruptcy all of the survivors that were started back up and sold to a buyer. The others were scraped or mothballed. They now run so efficiently they start up and shut down with zero problems and have a good count on what they buy as far as raw materials and how much they produce.

This is the same thing that needs to happen to the top 20 countries were Debt to GDP eating up the GDP. All you are paying on is interests payments at this point for the good old USA. We are running on fumes. The correction and subsequent hitting of the restart button needs to happen here and in the EU. How it shakes out no one knows. To many factors in figuring out whats going to happen. All we know is we are 15 trillion in debt and no one can figure out what to cut and how to cut it. The more it grows and no one does anything about it the worse its going to be when we do fail and its going to happen you can't keep printing monopoly money and have zero gold to back it up and borrow borrow borrow and only pay on the interest payments. When it happens look out its going to get nasty.

factoid: no paper currency has survived more then 250 years give or take a few years.

Originally Posted by PartTimeScrapper

Currently a quater minted between 1916 and 1964 is valued at $5.74 worth of silver.

Serious? I am going to have to pay more attention when I get a batch of quarters in.

Thats the sight I used to get that value

History is an interesting thing. Although the circumstances are different I will remind you of the following. During our great depression Europe didn't have as long lasting or as deep a depression.

It can be argued that the over control placed on the US economy by FDR caused the extent of our great depression. It wasn't til after WWII when Truman cut the federal government and cut taxes did we really recover.

Please remember after WWII all those men returned wanting a job. The war effort production was over so it is amasing that we didn't return to the pre-war depression. I fear we may again repeat all or part of those past mistakes. All we can do is vote (just once) and prepare our families as best we can. Mike.

Back in the 80s (gold 300 oz) I was in a bar up in Alaska and there was an old timer sitting at the bar and he pulled out a good sized sack and the bartender pulled out a scale and he paid in gold flake. I was told he came to town once a month or so by plane stocked up and back to his claim. Thinking about going prospecting next summer. If the @#$ hits the fan those folks in Alaska with that scale and that sack won't notice too much.