Y'all Been Checkin' Lumber Prices?

[rScotty]

All well and good.

My point was, what's gold worth during a financial collapse? Not discrediting it as an investment during good times. Just wondering who's going to give anything for it in bad times?

Hey, Overszd, doesn't that depend on the direction of the collapse?

In 1971 when Nixon ended gold-backed currency, a new era started in the USA. Today the dollar is now backed up by our Gross Domestic Product....and inflation is offset by the gains in the GDP. Basically Nixon gave the gov't the ability to print money without restraint, and in doing so he literally created today's international debt-based economy.

The old type of economic collapse was what happened in the Great Depression of the 1930s. That type of collapse isn't possible anymore, because that type of collapse was brought about by the requirement that there be enough gold in Ft. Knox to back up the dollars in circulation. The gold wasn't there because the USA either hadn't mined enough, or produced enough goods for export, or because we bought too much from countries who demanded to be paid in gold, or because the gold/dollar ratio had been changed away from 1:1.

Probably all of those reasons contributed to the Great Depression of the 1930s.

But we aren't there anymore. The other type of economic collapse works in the opposite direction. It is the kind of collapse that wasn't possible in the USA until 1971, although historically is is the more common type of economic collapse that countries experience. It is the type that could happen to us today.

It's the kind of collapse where there are too many dollar bills printed, the country's GDP has gone down, and with it goes the value of the dollar that GDP supports. Theoretically, a country could sit around producing nothing until dollar bills were only worth the paper and ink. In that case most anyone would rather have gold than paper. And that's the argument for gold in a nutshell: In the only type of collapse that is possible today, gold is better to have under the mattress than paper dollars.

For hundreds of years that type of collapse couldn't happen in the USA because dollars were backed by gold. i.e. Ft. Knox. But now that it can happen doesn't mean it will. Frankly I find a collapse unlikely. More likely when GDP falters all that happens is dollars will go down and gold go up....sometimes rapidly, but more often at a slow rate of change we call inflation.

If I am wrong and a collapse does happen, dollar bills will not have value, but something else will. It might be gold, and again it might be something else.

I'm betting on land, tractors and implements....how about you?
rScotty

 

[grsthegreat]

Hey, Overszd, doesn't that depend on the direction of the collapse?

In 1971 when Nixon ended gold-backed currency, a new era started in the USA. Today the dollar is now backed up by our Gross Domestic Product....and inflation is offset by the gains in the GDP. Basically Nixon gave the gov't the ability to print money without restraint, and in doing so he literally created today's international debt-based economy.

The old type of economic collapse was what happened in the Great Depression of the 1930s. That type of collapse isn't possible anymore, because that type of collapse was brought about by the requirement that there be enough gold in Ft. Knox to back up the dollars in circulation. The gold wasn't there because the USA either hadn't mined enough, or produced enough goods for export, or because we bought too much from countries who demanded to be paid in gold, or because the gold/dollar ratio had been changed away from 1:1.

Probably all of those reasons contributed to the Great Depression of the 1930s.

But we aren't there anymore. The other type of economic collapse works in the opposite direction. It is the kind of collapse that wasn't possible in the USA until 1971, although historically is is the more common type of economic collapse that countries experience. It is the type that could happen to us today.

It's the kind of collapse where there are too many dollar bills printed, the country's GDP has gone down, and with it goes the value of the dollar that GDP supports. Theoretically, a country could sit around producing nothing until dollar bills were only worth the paper and ink. In that case most anyone would rather have gold than paper. And that's the argument for gold in a nutshell: In the only type of collapse that is possible today, gold is better to have under the mattress than paper dollars.

For hundreds of years that type of collapse couldn't happen in the USA because dollars were backed by gold. i.e. Ft. Knox. But now that it can happen doesn't mean it will. Frankly I find a collapse unlikely. More likely when GDP falters all that happens is dollars will go down and gold go up....sometimes rapidly, but more often at a slow rate of change we call inflation.

If I am wrong and a collapse does happen, dollar bills will not have value, but something else will. It might be gold, and again it might be something else.

I'm betting on land, tractors and implements....how about you?
rScotty

im betting food, gas, water.

 

[JethroB]

Now if the lumber prices will just trickle down to the stump prices. I’ve got 50 acres of loblolly saw timber ready to be cut.

 

[Smokeydog]

Hey, Overszd, doesn't that depend on the direction of the collapse?

In 1971 when Nixon ended gold-backed currency, a new era started in the USA. Today the dollar is now backed up by our Gross Domestic Product....and inflation is offset by the gains in the GDP. Basically Nixon gave the gov't the ability to print money without restraint, and in doing so he literally created today's international debt-based economy.

The old type of economic collapse was what happened in the Great Depression of the 1930s. That type of collapse isn't possible anymore, because that type of collapse was brought about by the requirement that there be enough gold in Ft. Knox to back up the dollars in circulation. The gold wasn't there because the USA either hadn't mined enough, or produced enough goods for export, or because we bought too much from countries who demanded to be paid in gold, or because the gold/dollar ratio had been changed away from 1:1.

Probably all of those reasons contributed to the Great Depression of the 1930s.

But we aren't there anymore. The other type of economic collapse works in the opposite direction. It is the kind of collapse that wasn't possible in the USA until 1971, although historically is is the more common type of economic collapse that countries experience. It is the type that could happen to us today.

It's the kind of collapse where there are too many dollar bills printed, the country's GDP has gone down, and with it goes the value of the dollar that GDP supports. Theoretically, a country could sit around producing nothing until dollar bills were only worth the paper and ink. In that case most anyone would rather have gold than paper. And that's the argument for gold in a nutshell: In the only type of collapse that is possible today, gold is better to have under the mattress than paper dollars.

For hundreds of years that type of collapse couldn't happen in the USA because dollars were backed by gold. i.e. Ft. Knox. But now that it can happen doesn't mean it will. Frankly I find a collapse unlikely. More likely when GDP falters all that happens is dollars will go down and gold go up....sometimes rapidly, but more often at a slow rate of change we call inflation.

If I am wrong and a collapse does happen, dollar bills will not have value, but something else will. It might be gold, and again it might be something else.

I'm betting on land, tractors and implements....how about you?
rScotty

Work all you can. Can all you make and sit on that can was a popular saying.

 

[/pine]

With 2 hurricanes forecast to make landfall along the Gulf coast this week...plywood and similar materials will be at a premium due to demands...
As a rule quotes on house framing packages etc. from material suppliers are only good for a week at most during "hurricane season"...!

 

[civilian]

A $13 2x10 x 12ft was quoted in February is now over $30 around here. Kinda kills that project. Jon

 

[GLyford]

As I understand it, during the Argentine collapse gold coins/bullion were hard to deal with, but cheap gold plated costume jewelry actually served fairly well as an impromptu currency for gas/food/etc.

 

[ovrszd]

im betting food, gas, water.

I'm with you.

 

[ruffdog]

I really have to question the rate of inflation that the numbers people are putting out there. It just seems like most common things I buy are jumping in price.

 

[grsthegreat]

It not so much inflation as it is hard to even find it. Production is down on alot of items due to covid rip off.