The coming worldwide credit crunch

So a pound sterling was worth one pound of silver in honest money days.

So lets do some quick simple calcs:

Silver is currently around 8.5pounds an ounce. There are I think 16 ounces in a pound.

So Silver is now 8.5 times 16 per pound sterling

About 128 pounds sterling a pound.of Silver.

So the Great British Pound has lost so much value its not even worth 1p compared to its original value.

What does this mean - well it that if you want to get wealthy and stay wealthy you have to invest in something of value that cannot be meaningfully increased in supply.

This rules out Spainish property, Euros, Pounds, dollars and Wide screen TVs. All of which can be manufactured at will.

thats cheating,its easy to say what not to after the fact...........

Tell us o wise one what is the answer,what do we buy............

By saying this i do take it that you are a multi millionaire and are going to let us in on your tried and tested get rich sheme.........

By the way as you "work in the city"  how do you get so much time off and get back to Spain so quickly............

thats cheating,its easy to say what not to after the fact...........

Tell us o wise one what is the answer,what do we buy............

By saying this i do take it that you are a multi millionaire and are going to let us in on your tried and tested get rich sheme.........

By the way as you "work in the city"  how do you get so much time off and get back to Spain so quickly............

Wow - thats a bit cynical. I'm not trying to sell anything, unlike most people on here.

If you have to know I put work in the City in quotes because my work used to be in the investment circle, traded options, equity derivatives.

I can spend my time now in Spain cos I'm retired. Too busy bringing up little girls lol. 

sorry wasn't meant to be cynical.

I was just asking for an educated decision and your thoughts on what to put your money into..........

After all,we have worthless money,live in our worthless houses,our stocks are collapsing,we drive around in our devaluing cars drinking through magic straws!!!

just wondered if you had the answer......................

What I'm trying to get across, obviously rather unsucessfully is that people are obsessed with the amount of euros or dollars or pounds that they have, or how much their property is worth. But in an inflationary environment, its not what matters.

If the government are insistant on turning our money to confetti, then in a few years time we could all be earning a million pounds a year, but if a sandwich cost 1000pounds, its not going to help alot.

When i was a kid, a millionaire was someone really rich, now they are two a penny. You have to have hundreds of millions before you get on any list now.

I am jsut trying to help people get off the hamster wheel of life, where people work harder and harder but just don't seem to get ahead. But as you say it does not seem to be working. Time to sit in the sun and have a cup of tea, if I can afford it.

I think we have crossed purposes TJ,

The whole idea of Spain is to do exactly what you state..............

I couldn't agree with you more,people come here for the life and to escape the rat race,they try to enjoy every second and look for a pleasant enviroment for both their families and in retirement.

We shouldnt have to worry about how much a €1.20 cafe con leche is worth,can you measure worth on a level of enjoyment.

I was the same as you in the UK work work work,2 cars,3 cars,big house,bigger house.......................

Does it make you smile?maybe for a split second.

I take your point with investors but nowadays the core of people moving here are looking for something they have lost.

A walk on the beach a longer life expectancy and happy smiley children will always have the same value,priceless.

Your posts are very informative and i wouldn't doubt for one minute that you know your stuff.

I just think we measure and value things at the moment in a different way.

Thanks more,

I think i misunderstood a lot of TJ posts,i think we are actually"singing from the same hymnsheet" in a strange sort of way.

This is such a good forum i just dont want people to stay away as they feel there can be too much doom and gloom at times.

I think the word "priorities" sums it up......

People should be sensible enough to see past the doom & gloom though & just take notice of all the advice, others thoughts & GOOD NEWS etc, Georgia. (With apologies to those who are experiencing the immense difficulties of purchasing in their case because of corruption etc. I am speaking about propective purchasers looking for sound advice).

"I was the same as you in the UK work work work,2 cars,3 cars,big house,bigger house......................."

Oh dear final post on this subject then I must get that cup of tea.

Its understanding the monetary system that enables me to retire to Spain and put my feet up in the sun. Do you see me work work work, 2cars 3cars etc - I'm retired from 9-5. I don't have to work, but chose to do lots of things to keep me active and content.

Precisely because I understand the way things work in this crooked world, I am doing the very opposite of work work work. I can watch my girls grow up and spend my time with my family enjoying Spain and those other things that your rightly say are so valuable. last year we travelled across Western australia in a campervan (mad or what) and two years before that when we had no kids, we travelled around the world and ended up in Thailand.

I'm not trying to be smug, just trying to help, because if everyone understood the system, then we would all vote in some decent politicians and have within a few years a much much better standard of living. There would be no more inflation and people could get off the rat race.

Instead the average Joe knows next to nothing about economics, so we have clowns like Bush, Brown and Zapatero that will before they are finished have most of us in abject poverty.

Tj,

When i said about work i was refering to both of us in the past tense.

I obviously know you live in Spain,i was talking about our similarities not our differences..................

As i said we obviously do have the same ideals at heart.

If us average Joe's knew exactly what was happening in central government do you not think we would be very concerned and probably never sleep again,some times ignorance is bliss........

"Bricks and Mortar was always what prospective farthers-in-law would tell me whilst warming their arses and flexing their braces in front of the fire. They never said buy gold, though their daughters did!"

Gillespie,

Taken your advice, had some spare cash so Wickes are delivering 2 packs of bricks, 3 bags cement and 1 of sand tomorrow, how long should I keep them before selling on and making a profit?   

Kelju