When I hear "people should spend all of their money" instead of saving...

[Richy_T]

buy bitcoins or gold. ie. spending them on a store of value

Neither of those 2 have a real value. You can't eat them, you can't drink them. Without food and drink, people die. Something that
does not solve existential problems on it's own is worthless. Just don't be stupid to count on someone being fair and giving you
bread and water for your (physical) Bitcoins or gold = if situation goes that bad, you'll most likely be robbed or even killed. If you
doubt that, you just show how little real life experiences you have, especially those coming from troubled times. I not only have
first-hand experience with very troubled times (check War in Vukovar 1991.), but I know human history. You seem to lack all of it.

http://www.youtube.com/watch?v=FykBW3zuZg8
http://www.youtube.com/watch?v=ydgMnQYtF6U

I don't go for the "intrinsic value of gold" either *but* there's no doubting that it would still have some trade value (even greatly reduced) should the worst happen. If nothing else, *someone* will want an ostentatious display of their wealth.

[1713275979]

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[1713275979]

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[novusordo]

These threads always seem to turn into worst-case-scenario worldwide disaster discussions. It's fun to discuss what would happen if society as we know it ceased to exist and all, but really, the chances of that actually happening are slim.

Don't get me wrong: like most guys, I find the thought of staking out my property against zombies with a 12-guage to be somewhat appealing for some reason, and it's interesting to ponder what would happen if the only value left was in the necessities.

It seems like conversations such as this start with a balanced "scale", but then people keep piling more and more weight on the side of the scale that leads to complete anarchy. It seems that this is extremely appealing to some people, myself included, because it taps right into our primal instinct of survival.

Seriously though, it's probably more likely that aliens decide to blow up the earth before that happens.

It'd be more worthwhile to discuss ways to save without too much risk in an economy that isn't going to evaporate.

[molecular]

People saying we should spend more and save less need a quick lesson in macro (Keynesian) economics.

Y = C + I + G + X

Y is total spending (GDP), C is consumption (a.k.a. consumer spending), I is investment (a.k.a. savings), G is government spending, and X is exports (less imports).

Please note that if you increase C by decreasing I, Y does not change. In other words, spending more and saving less does not increase GDP. Furthermore, growth of GDP depends on I. So, if a country wants to increase GDP, they need to increase savings and decrease spending (both consumer and government).

This assumes saving == investment. OP talked about hoarding, though, which means "putting under matress". That money is not available to the economy.

hoarding != saving

[molecular]

If you save a lot of gold, then comes natural disaster, what is the use of those gold if all the factories have been wiped out in an earthquake?

I remember some old german woman on youtube being interviewed. She said something like this (paraphrasing): "Let me tell you: money is worth nothing! I tell you a story: after the war [I'm assuming WW2], my cousin and his child [or someone else, don't remember] went to a new city. After one week, they had a car and a bicycle... why? Because he had SILVER!"

After a disaster, there will be rebuilding and that requires some form of money... cigarettes, gold, silver, whatever will be used. If you have it: bingo. It's probably not going to be laundry detergant, but who knows.

[molecular]

Hello lets all go back to basics. The reason why we are having this problem is due to the wealth being diluted through inflation. Fractional reserve banking has been banned before.

The fractional reserve banking has been allowed to run its course and it hit the iceburg in 71 and since then whatever had given a positive value to what we had in our pockets has been removed. It is now a negative value or aka debt.

How do you save in a wealth vacuum other than PM's . The problem is everyone feels this shit we have in our pocket is worth something. Actually it is worth something, its only worth paying taxes with it. I would never give up my gold or silver to pay state taxes.

Yes I know we are given interest for the currency we hold in banks but at a level that is below inflation and can't even hold a flame against their creative fees that eat away at our lives.

nuff said. BANKS ARE THE CANCER AND THE PROBLEM

If people had a place to put money that was safe and honest I think little Johnny would spend less and save more.   

"Banks are the cancer" is too simplisitc, I would differentiate a bit:

• sound commodity money: very good
• banks (depository and lending services with sound money): not bad
• banks (fractionally operating) and currency not fully backed: slippery slope to bad
• a banking cartel, fiat currencies with no backing, existence of a lender of last resort. all controlled by a small group of men: very bad

so i think we will go from the last point (we currently have this) to the first one (with bitcoin a contender for the money to be used)

[Spaceman_Spiff]

Neither of those 2 have a real value. You can't eat them, you can't drink them. Without food and drink, people die. Something that
does not solve existential problems on it's own is worthless.

I will be very happy to accept your worthless, unedible dollar bills then.  I' ll even give you a cookie for all of them.

if situation goes that bad, you'll most likely be robbed or even killed.

True, but depends on just how bad the situation gets.

if you would read the whole thread, i also suggests "frozen carrots" as a store of value.
i might lack knowledge of history, but you clearly don't read very well.

You sir, are a funny man !

[johnyj]

Even if people hold gold as a saving medium, the available goods/services corresponds to those savings are continuously degrading. The best way to avoid degrading is consume those goods immediately. and that consumption in turn support other type of production. Otherwise the inflation will be unavoidable

[Rudd-O]

"Gold is not worth anything. It can't even be eaten."

Funny how the idiots who say this kind of nonsense don't actually eat funny-looking pieces of paper with cultish symbols intaglio'ed on them.