Gyroscopic Investing

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If this were to happen, gold and treasuries ralley and stocks crash.

PP does it again.

This sort of thing is very definitely a risk to be aware of.  We have so many devices that depend upon circuitry that is not hardened against electrical bursts that any sort of electrical storm (either from space or man-made) could cause all sorts of problems.

I think the PP protects one as well as possible by holding hard assets that would not be wiped out or unavailable during a period of widespread electrical outages or malfunctioning electrical equipment.

If you read up on the solar storm that hit the earth in 1859 and imagine what it would do today the nature of the risk becomes clearer. 

Here's a good story about the 1859 event:  LINK

From a geological time perspective, this sort of thing happens very frequently.

moda0306 wrote: If this were to happen, gold and treasuries ralley and stocks crash.

PP does it again.

If this happens you will be poorer no matter what you own.  But the PP may be better than most portfolios (perhaps excepting one comprised of kerosene and lanterns).  

I have no idea if this guy is credible or not:

http://www.youtube.com/watch?v=27ji-NL2 ... ded#at=216

Could be Y2K deja vu or something bad.  I would imagine worst case down time might be several months.  Would suck but not the end of the world.

His haircut makes me feel uncomfortable : )

Wonk wrote: I have no idea if this guy is credible or not:

http://www.youtube.com/watch?v=27ji-NL2 ... ded#at=216

Could be Y2K deja vu or something bad.  I would imagine worst case down time might be several months.  Would suck but not the end of the world.

I didn't watch the video, but if you are talking about no electricity for several months, it may not end the world but a lot of people would certainly die.  The shock to the global economy would make the 'Great Recession' seem mild in comparison.

Pkg Man wrote:

Wonk wrote: I have no idea if this guy is credible or not:

http://www.youtube.com/watch?v=27ji-NL2 ... ded#at=216

Could be Y2K deja vu or something bad.  I would imagine worst case down time might be several months.  Would suck but not the end of the world.

I didn't watch the video, but if you are talking about no electricity for several months, it may not end the world but a lot of people would certainly die.  The shock to the global economy would make the 'Great Recession' seem mild in comparison.

Are we talking planes powering down and dropping out of the sky? It all sounds very cataclysmic. As far as the PP goes, a stash of gold coins seems like it would be impossible to value when the COMEX grinds to a halt. Seems like there isn't enough cash for everyone to go around. I don't think society can really prepare for something like this.

It reminds me of Bill Bryson's, "A Short History of Nearly Everything," where he talks about these regular horrific events constantly showing up throughout time. Epic volcanic eruptions, Earth's magnetic field reversing, mega asteroids. Each of those events would cause unthinkable and irreparable harm and scientists claim we are way overdue for each of those events.

Gumby wrote:

Pkg Man wrote:

Wonk wrote: I have no idea if this guy is credible or not:

http://www.youtube.com/watch?v=27ji-NL2 ... ded#at=216

Could be Y2K deja vu or something bad.  I would imagine worst case down time might be several months.  Would suck but not the end of the world.

I didn't watch the video, but if you are talking about no electricity for several months, it may not end the world but a lot of people would certainly die.  The shock to the global economy would make the 'Great Recession' seem mild in comparison.

Are we talking planes powering down and dropping out of the sky? It all sounds very cataclysmic. As far as the PP goes, a stash of gold coins seems like it would be impossible to value when the COMEX grinds to a halt. Seems like there isn't enough cash for everyone to go around. I don't think society can really prepare for something like this.

It reminds me of Bill Bryson's, "A Short History of Nearly Everything," where he talks about these regular horrific events constantly showing up throughout time. Epic volcanic eruptions, Earth's magnetic field reversing, mega asteroids. Each of those events would cause unthinkable and irreparable harm and scientists claim we are way overdue for each of those events.

From what I can find, the severity assumptions are all over the map.  Most point to 2012 as far as timeline is concerned.  I'm not going to worry about it much because I can't control it.  For most scenarios like these, I think it's wise to prepare from worst to best:

1. Worst: you die (easy, nothing to do)
2. Really bad: civilization collapses for a prolonged period (barter, basic survival)
3. Bad: civilization collapses for a short time (barter/shelter in place)
4. Not too bad: disruption, inconvenience, economy hurt (drink a beer)
5. Best: nothing happens (drink many beers)

In really bad scenarios, barter is the dominant currency.  An important side note is that civilizations always establish a store of value and currency shortly after order is restored.  As long as you have basic survival skills and can adapt accordingly, you'll be fine.  Firearms are always a nice addition.  Not saying that's what will happen--just that most of these scenarios are not worth worrying about.

But... it's on Fox News so it must be true!!!!       

I think this is the sort of thing that is good to educate yourself about, but not worry yourself about.

To me, the value of educating myself about it is that it would allow me to respond more appropriately if it ever happened in a way that was widely destructive.  In other words, when something happens that is outside of one's experience, his ability to respond and adapt can be crippled for a time, while someone who has thought through how he would respond beforehand is not necessarily subject to the same mental overload and inability to think clearly when the event occurs.

The sun flare example is just one of countless contingencies I think about from time to time.  I think it helps keep the mind loose.

Would rather have 1 year food, $cash and generator at home and not need them, than to need food, cash and heat and not have them.  Everyone should be prepared regardless of what this story suggests. 

Plumbline wrote: Would rather have 1 year food, $cash and generator at home and not need them, than to need food, cash and heat and not have them.  Everyone should be prepared regardless of what this story suggests. 

Agreed.  That is one reason I purchased a wood-burning stove last year.  Not the only reason, but I once went w/o heat for a week and it is not something I wish to repeat.  I have always had a bit of a survivalist mentality, which I believe to be a good thing if not carried to an extreme.

Plumbline wrote: Would rather have 1 year food, $cash and generator at home and not need them, than to need food, cash and heat and not have them.  Everyone should be prepared regardless of what this story suggests. 

This is another reason it is important to have physical gold in the PP rather than ETFs.