When “Cash Becomes King” . . . .

[helmsdale]

Enjoy the good ole days while they last. Ignorance is bliss. The can will get kicked again and again. Cash is king and at least it will be better than no toilet paper at all. Try that with a gold coin.

Honest to goodness if it really went apocalyptic, the only currency worth holding is lead, and the means with which to dispense of it...

Lead beats paper, physical land, or precious metals every time!

[AlbertaFarmer5]

I would say Errol has the credentials to back up what he preaches. If you don't know who he is, you should look him up. He is well respected in the ag community.

A little taste of who Errol is:

Experienced President (Pro market communications) with a demonstrated history of working in the market research industry. Skilled in Commodity Risk Management, Public Speaking, Commodity Pools, Market Research, and Project Management. Strong business development professional with a BSc Ag Economics focused in Commodity Markets from University of Alberta.

At least he has the cahonees to put his thoughts and opinions out there for people to learn from.

I have said it once, and will say it again. I believe Errol is 100% correct in his depiction of what is to come. It is just hard to time with the government fighting tooth and nail to prolong it from happening as long as they can.

Well said. I meant no disrespect, very grateful that a professional such as Errol is willing to share with us, for free no less. There used to be a few industry professionals who posted here regularly, it seems we scared the rest off, and that is a shame. And no doubt he is right about the inevitable results, just the timing that is the hard part. It is just so easy to get paralyzed with fear with all the negative news and projections, and completely miss out on the opportunities while waiting for the meltdown.

[errolanderson]

The U.S. Fed may be approaching near panic-mode as they are now aiming a near HALF TRILLION dollar ($490 billion) liquidity hose into bank repo operations heading into December month end.

The Fed is desperately trying to shore-up end-of-year funding (liquidity) risks.

But according to markets . . . nothing to see here.

[bobofthenorth]

Lead beats paper, physical land, or precious metals every time!

If you're a serious prepper you can plan for everything - water, food, heat, shelter, etc, etc - or you can lay in a stock of weapons and ammo and plan to steal what you need.

[errolanderson]

Berkshire Hathaway is now rapidly increasing their cash position . . . now exceeds $100 billion.

Many investment houses scratching-their-head . . . why? The market is doing so well and the U.S. economy is so strong . . . .

[furrowtickler]

Berkshire Hathaway is now rapidly increasing their cash position . . . now exceeds $100 billion.

Many investment houses scratching-their-head . . . why? The market is doing so well and the U.S. economy is so strong . . . .

Scratching heads as to why 4 am on a Sunday in the dead of winter this keeps you up ?
Are we all that ***ed ??

[Flatlander]

Where does Warren keep his cash? Has he heard of a bail in vs bail out I wonder. 100 billion is more than the mattress could handle. Risks are everywhere. What to do, stay agile, be diversified?

[errolanderson]

Scratching heads as to why 4 am on a Sunday in the dead of winter this keeps you up ?
Are we all that ***ed ??

May depend on where you are located on the planet . . . .

[jazz]

Scratching heads as to why 4 am on a Sunday in the dead of winter this keeps you up ?
Are we all that ***ed ??

Because the US is willing to risk a recession to neuter China once and for all. China is the biggest bubble in the history of mankind and its going to get pricked. The repo markets are probably shoring up that inevitability.

Zeihan predicts china will renege on this Ph1 deal and then all bets are off after that.

See for yourself what china has been doing. Look up their ghost complexes. There are more than 50 of these in the country some the size of cities. They have built an entire economy upon the hope of upscale movement of poor people into the middle consumer class using massive govt funding. Unfortunately they missed econ 101 class about creating inflation along the way. Along with their demographic bomb, china will grow old long before it grows rich.

US is insulating itself from the blast. So is Buffet.

[errolanderson]

Because the US is willing to risk a recession to neuter China once and for all. China is the biggest bubble in the history of mankind and its going to get pricked. The repo markets are probably shoring up that inevitability.

Zeihan predicts china will renege on this Ph1 deal and then all bets are off after that.

See for yourself what china has been doing. Look up their ghost complexes. There are more than 50 of these in the country some the size of cities. They have built an entire economy upon the hope of upscale movement of poor people into the middle consumer class using massive govt funding. Unfortunately they missed econ 101 class about creating inflation along the way. Along with their demographic bomb, china will grow old long before it grows rich.

US is insulating itself from the blast. So is Buffet.

China’s building of ghost cities is effectively their form of QE. They must keep their people working. This is no different than the U.S. printing money like a drunken sailor in the attempt to run ahead of the next financial crisis.

[chuckChuck]

There were many apartment blocks built during the Bakken drilling boom in Williston ND. Many of them are empty now that the boom has slowed down due to lower oil prices. Williston is quieter compared to the heady days of the boom.

[AlbertaFarmer5]

Berkshire Hathaway is now rapidly increasing their cash position . . . now exceeds $100 billion.

Many investment houses scratching-their-head . . . why? The market is doing so well and the U.S. economy is so strong . . . .

So Berkshire Hathaway has effectively doubled down on a losing position that has already been on for far too long, and has underperformed nearly every other fund, and the broader market since it started going to cash. Might be correct this time, but after missing out on the most recent run up, they have a lot of catching up to do.

[errolanderson]

So Berkshire Hathaway has effectively doubled down on a losing position that has already been on for far too long, and has underperformed nearly every other fund, and the broader market since it started going to cash. Might be correct this time, but after missing out on the most recent run up, they have a lot of catching up to do.

Question to ask ourselves . . . Is it better to run with the bulls with a potential of getting caught in the crash or . . . park your money in-wait? Depends on your appetite for risk, financial situation, age etc.

[jazz]

China’s building of ghost cities is effectively their form of QE. They must keep their people working. This is no different than the U.S. printing money like a drunken sailor in the attempt to run ahead of the next financial crisis.

Maybe but consider those differences too. US has expanded rerserve currency and liquidity with its QE program so that money can slosh around to where it's needed even in a recession.

China has put it all into bricks and mortar that has never even been occupied That's illiquid and likely to be stranded capital if they can't get their population to start buying those units and commercial spaces. This is 2008 subprime x 100

Even apts in Williston and McMansions in Florida were bought and occupied for a few yrs.

[malleefarmer]

Zeihan predicts china will renege on this Ph1 deal and then all bets are off after that.

Why is everyone hyping up the deal if this is the case why is the deal even happening if this is the case.