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Advice on Military/Banking /Finance
Tuesday, March 12, 2013 3:21
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Good morning Fernando -
I have read your book and many of your blogs. I still have a couple of questions. Most of the “prepper” investment
advice is directed towards people with tens of thousands of dollars, so I would
appreciate more everyday Joe advice. I
also have a couple of questions as to how investments/precious metals can
actually be used or how they an be used to obtain money after a collapse.
advice is directed towards people with tens of thousands of dollars, so I would
appreciate more everyday Joe advice. I
also have a couple of questions as to how investments/precious metals can
actually be used or how they an be used to obtain money after a collapse.
I am in the US and my husband is in the US
military. We only have about $5,000.00
in savings and about $15,000 tied up in an IRA as we are always moving for
orders and, face it, the military doesn’t make much money.
military. We only have about $5,000.00
in savings and about $15,000 tied up in an IRA as we are always moving for
orders and, face it, the military doesn’t make much money.
1) Since we are government paid through direct
deposit, do you have any ideas on what we should expect when SHTF as to
disruption/stop of pay? I can play it
both ways in my head – government is bankrupt so no pay or government needs
military to maintain itself, so it does pay the military. What happened in Argentina as to the military
pay?
deposit, do you have any ideas on what we should expect when SHTF as to
disruption/stop of pay? I can play it
both ways in my head – government is bankrupt so no pay or government needs
military to maintain itself, so it does pay the military. What happened in Argentina as to the military
pay?
2) If money withdrawal
becomes restricted, then how is it beneficial to invest in precious metals
(aside from physically buying them)?
becomes restricted, then how is it beneficial to invest in precious metals
(aside from physically buying them)?
3) Along that line, if you have an offshore account
how does that allow you to physically get your hands on that money? What I mean
is if you can’t get any money what does it matter if you “have” money
in an investment account. Also, if a
stronger currency (i.e. the USD in Argentina vs. the peso) is what I have in
that offshore account, but it is made illegal – then how does that help me?
how does that allow you to physically get your hands on that money? What I mean
is if you can’t get any money what does it matter if you “have” money
in an investment account. Also, if a
stronger currency (i.e. the USD in Argentina vs. the peso) is what I have in
that offshore account, but it is made illegal – then how does that help me?
4) If you buy precious metals to have in your
possession then how do you use them (i.e. say I have an ounce of gold and need
groceries)?
possession then how do you use them (i.e. say I have an ounce of gold and need
groceries)?
5) With such little savings (yes, we are putting as
much away as we can), is it more important to start keeping it out of the banks
and on hand or work towards investments such as metals or offshore accounts?
much away as we can), is it more important to start keeping it out of the banks
and on hand or work towards investments such as metals or offshore accounts?
I apologize in advance if these questions are
ridiculously basic, but it I tend to over-think things and cannot find these
answers. I have asked others who have bought
precious metals and their answers on how they will “use” them are, at
best, illogical and, at worst, stupid.
ridiculously basic, but it I tend to over-think things and cannot find these
answers. I have asked others who have bought
precious metals and their answers on how they will “use” them are, at
best, illogical and, at worst, stupid.
Thank you, again, for your book and ongoing blog.
Susan
Hi Susan, thanks for your email.
1)
If SHTF as in serious economic
problems (default, stock market crash, bankruptcy of larger corporations) and bank holydays are declared you are pretty much
left with what you have at home, so everything we talk about here all the time
applies: Food, water, emergency gear, weapon, lights, alternative forms of
heating and cooking, etc, including emergency cash and some precious metals.
If SHTF as in serious economic
problems (default, stock market crash, bankruptcy of larger corporations) and bank holydays are declared you are pretty much
left with what you have at home, so everything we talk about here all the time
applies: Food, water, emergency gear, weapon, lights, alternative forms of
heating and cooking, etc, including emergency cash and some precious metals.
In general countries will keep paying
their police and military because they need them to sustain order during
troubled times. That doesn’t mean you’re completely safe. What will happen most
likely is that wages for police and military will not go along with inflation.
As life gets more expensive, the salaries of most LE and military personnel
will hardly keep up, decreasing you purchasing power and standard of
living. That’s what happened in
Argentina and what has happened in other countries that have gone through
similar crisis.
their police and military because they need them to sustain order during
troubled times. That doesn’t mean you’re completely safe. What will happen most
likely is that wages for police and military will not go along with inflation.
As life gets more expensive, the salaries of most LE and military personnel
will hardly keep up, decreasing you purchasing power and standard of
living. That’s what happened in
Argentina and what has happened in other countries that have gone through
similar crisis.
2)
I always recommend physical precious metals
at hand, kept home in a safe or very well hidden.Read the chapter of my book called“The Importance of Precious Metals”, page 185. If ATMs run dry and it becomes hard to find
cash, your PM (precious metal) will become a valuable commodity.
I always recommend physical precious metals
at hand, kept home in a safe or very well hidden.Read the chapter of my book called“The Importance of Precious Metals”, page 185. If ATMs run dry and it becomes hard to find
cash, your PM (precious metal) will become a valuable commodity.
3)
With a foreign account and a card
attached to it you can in some cases use that money even if the local banking system
is severely restricted. Today as I write this, there are many countries that
have rules for their local banks that don’t apply to foreign ones. In these
countries locals have many restrictions while foreigners are spared form these
rules, mostly so as to not scare away tourists and investors. Even if you are
local, your account is foreign, so it may be unaffected in terms of how much
you can spend or how much money you’re allowed to get out of the ATMS. For
example, in Argentina you can get more money out of ATM than the local legal
limit if using ATMs at the branch of your foreign bank account. In a worst case
scenario, if you have to leave the country entirely your money is already
abroad and you don’t have to leave without it or leave with the cash which may
be seized by the police when going through customs. During normal times none of
this would be a problem, you can just transfer money from one country to
another. Try transferring money into or out of Argentina and then tell me how
that worked out for you. In troubled countries and during troubled times all
these problems come up, problems that don’t exist in normal places.
With a foreign account and a card
attached to it you can in some cases use that money even if the local banking system
is severely restricted. Today as I write this, there are many countries that
have rules for their local banks that don’t apply to foreign ones. In these
countries locals have many restrictions while foreigners are spared form these
rules, mostly so as to not scare away tourists and investors. Even if you are
local, your account is foreign, so it may be unaffected in terms of how much
you can spend or how much money you’re allowed to get out of the ATMS. For
example, in Argentina you can get more money out of ATM than the local legal
limit if using ATMs at the branch of your foreign bank account. In a worst case
scenario, if you have to leave the country entirely your money is already
abroad and you don’t have to leave without it or leave with the cash which may
be seized by the police when going through customs. During normal times none of
this would be a problem, you can just transfer money from one country to
another. Try transferring money into or out of Argentina and then tell me how
that worked out for you. In troubled countries and during troubled times all
these problems come up, problems that don’t exist in normal places.
4) Since you already have my book, read
the chapter called “Using Gold, Silver and Foreign Currency after the Crisis” page
215. There you’ll find a much more complete answer than anything I could write
here at this moment. Basically you don’t use a 1oz gold coin to guy groceries,
you sell it to a broker first. Besides that, you may want to keep a small amount
of “junk” gold and sivler as PM of smaller denomination. Already in USA there’s
an understanding of junk silver and pre 65 coins.
the chapter called “Using Gold, Silver and Foreign Currency after the Crisis” page
215. There you’ll find a much more complete answer than anything I could write
here at this moment. Basically you don’t use a 1oz gold coin to guy groceries,
you sell it to a broker first. Besides that, you may want to keep a small amount
of “junk” gold and sivler as PM of smaller denomination. Already in USA there’s
an understanding of junk silver and pre 65 coins.
5)With the kind of savings you have, I’d
keep about two thousand at home and,
once your other priorities are covered, start working in building up a
precious metal stash little by little. Silver Eagles are nice because you can
get one every month or two and before you know it you have a bunch of them, but
remember that silver gets heavy fast (too much volume and not as compact as
gold) and this could be problematic if you ever had to evacuate, maybe even
hide your PM on your clothes. Its much easier to hide a gold coin in your
jacket than 40 silver coins.
keep about two thousand at home and,
once your other priorities are covered, start working in building up a
precious metal stash little by little. Silver Eagles are nice because you can
get one every month or two and before you know it you have a bunch of them, but
remember that silver gets heavy fast (too much volume and not as compact as
gold) and this could be problematic if you ever had to evacuate, maybe even
hide your PM on your clothes. Its much easier to hide a gold coin in your
jacket than 40 silver coins.
I would open an offshore account too,
and leave a small amount of money there. The important thing is to have the account
in the first pace. That way if you ever see things getting worse, or rumors of
a bank run spreading, you’ll already be ahead of the game and can transfer you money
away while most people don’t even have a foreign account to begin with. Its not
hard or expensive to open one( but it does require time), its just than most
people don’t care or bother with it. Timing is of course crucial, a day too
late and your savings may get stuck in the country’s collapsing economy.
and leave a small amount of money there. The important thing is to have the account
in the first pace. That way if you ever see things getting worse, or rumors of
a bank run spreading, you’ll already be ahead of the game and can transfer you money
away while most people don’t even have a foreign account to begin with. Its not
hard or expensive to open one( but it does require time), its just than most
people don’t care or bother with it. Timing is of course crucial, a day too
late and your savings may get stuck in the country’s collapsing economy.
FerFAL
2013-03-12 03:00:43
Source: http://ferfal.blogspot.com/2012/10/advice-on-militarybanking-finance.html
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