But wait, someone else called out. What about putting that money into gold or diamonds or something. When we generalized that into the idea of hoarding physical stuff with some intrinsic value, it became pretty obvious that what value those things have is purely a matter of what someone's willing to pay for them. Unless it's actually useful for something, that value is more fantasy than anything else. Which turned the suggestion into amassing stuff that would be valuable once the proverbial fan got crudded up. Only, what would that be?
Then there's real estate. Ignoring the fact that mortgages, which are financed by make-believe money created on a tally sheet, are the foundation of the debt pyramid, some people actually own their own property outright. Now, you'd think they'd be safe, wouldn't you? And they might well be, but there is the possibility of the government swiping that land in what they call a taking. If the only way to make ends meet is by stealing, not many of us would balk at the thought, and the same probably goes for the government we thought we'd established to protect us. But could they? I mean, with the infrastructure in shambles, would any government have its act enough together to pull this kind of thing off? They'd be certain to run into some stiff opposition from the landowner, probably at the point of an unregistered gun. Under the circumstances, I doubt the government, or what might be left of it, could pose much of a threat, but you never know. You have to ask yourself if you're certain enough about it to put what money you can raise without incurring any debt into real estate that you can buy outright?
Before we'd even finished framing the question, our attempt at economic piety ambushed us. The price of land has gotten so ridiculous the only way buy any is with debt. I suppose you could tell yourself you'd never have to make good on that debt, so why not take advantage of the situation, but if the collapse turns into a slow-motion train wreck, you'd just manage to strangle yourself in the process. If you've already got some free and clear, hold onto it, by all means, but buying any is a bigger non-starter than the idea that any junta that's taken power by nefarious means will ever relinquish it easily.
All of which puts us right back where we started, asking ourselves what to do. Got any ideas?
-- The Bank Shot Blogger
(This is the 13th story in a series that started with "Logical Conclusion/Full Circle".)
(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).
