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Is the Dollar Going to Collapse?
Human Events | 10/09/2009 | Mark Skousen

Posted on 10/10/2009 8:02:36 AM PDT by ChessExpert

Rumors are flying that secret meetings are taking place between Arab states, China, Russia, Japan and France, to dump the dollar and replace the U.S. currency’s role in the pricing of oil. The dollar fell against the euro, yen and Swiss franc, while gold hit new highs of $1,041 an ounce.

Is there any truth to the rumors that the dollar is being replaced by a basket of foreign currencies, and what will be the impact your investments and the U.S. economy?


TOPICS: Business/Economy; Front Page News; Government
KEYWORDS: commodities; currency; dollar; economy; globaleconomy; gold; missinglink; third100days
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Mark Skousen is a well-rounded economist and a stock market investor. He is politically conservative, and has been recommended by Ann Coulter. He keeps his head, when others are losing theirs.

I think the article is a balanced analysis of this moment in time. I am more worried about the future than Mark Skousen is, or lets on to being, in this article.

1 posted on 10/10/2009 8:02:36 AM PDT by ChessExpert
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To: ChessExpert

You omitted the link to the story.


2 posted on 10/10/2009 8:04:17 AM PDT by Canedawg (FUBO)
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To: ChessExpert

There was a story last week about a 450 billion dollar exchange of some currency last week that was STOPPED before it could go to several trillion.

That sounds to me like a deliberate act of War.

Who did it? Why wasn’t this all over the news? It could have crippled the enire US economy overnight (if you think THIS economy is bad, you have no idea)


3 posted on 10/10/2009 8:06:18 AM PDT by Mr. K (THIS ADMINISTRATION IS WEARING OUT MY CAPSLOCK KEY DAMMIT DAMMIT DAMMIT!!!!!)
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To: ChessExpert
The separation between Gold and silver is puzzling Gold has many uses one being wealth hedging while silver has more of an Industrial side.
4 posted on 10/10/2009 8:06:43 AM PDT by Cheetahcat (Zero the Wright kind of Racist! We are in a state of War with Democrats)
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To: Canedawg

http://www.humanevents.com/article.php?id=33892


5 posted on 10/10/2009 8:08:45 AM PDT by jessduntno (Tell Obama to STFU - Stop The Federal Usurpation.)
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To: Canedawg
Here's a link to the article.
6 posted on 10/10/2009 8:09:22 AM PDT by blam
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To: jessduntno; blam

thank you


7 posted on 10/10/2009 8:11:43 AM PDT by Canedawg (FUBO)
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To: Canedawg

Oh that’s what it is! lol, I got to the final sentence and thought “well hell, aren’t you going to analyze and tell us of the ‘impact”.


8 posted on 10/10/2009 8:11:44 AM PDT by Outlaw Woman (In Defense of Liberty.........Radicalism may be necessary.)
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To: Mr. K
That sounds to me like a deliberate act of War.

I think the first attack happened last fall.

9 posted on 10/10/2009 8:11:50 AM PDT by alicewonders (Sarah Palin is the face of America's future.)
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To: ChessExpert
Devaluation is inevitable. Whether big players take drastic steps in a withdrawal and set off a wide ranging flight from the dollar is debateable. When you've got countries as diverse as the Philippines intervening to prop it up is seems almost certain.
10 posted on 10/10/2009 8:11:53 AM PDT by allmost
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To: ChessExpert
Is there any truth to the rumors that the dollar is being replaced by a basket of foreign currencies

Didn't thay award Barry Odumbo the Nobel prize in anticipation of that event?

11 posted on 10/10/2009 8:18:01 AM PDT by YankeeReb
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To: ChessExpert

He neglects to mention how the ratio between gold and silver is off.


12 posted on 10/10/2009 8:18:32 AM PDT by nickcarraway
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To: ChessExpert

Is the dollar going to collapse? Yes.


13 posted on 10/10/2009 8:21:08 AM PDT by Nuc1 (NUC1 Sub pusher SSN 668 (Liberals Aren't Patriots))
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To: ChessExpert

What is the best way to buy silver?


14 posted on 10/10/2009 8:24:58 AM PDT by freespirited (Liberals are only liberal about sex & drugs. Otherwise, they want to control your life. --DHorowitz)
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To: ChessExpert
George W. Bush, 2001 - 2009, US dollar -26%
Bill Clinton, 1993-2001, US dollar +18%
George H.W. Bush, 1989-1993, US dollar -6%
Ronald Reagan, 1981-1989, US dollar +2%
Jimmy Carter, 1977-1981, US dollar -14%

15 posted on 10/10/2009 8:24:59 AM PDT by BGHater ("real price of every thing ... is the toil and trouble of acquiring it")
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To: blam

for later


16 posted on 10/10/2009 8:26:34 AM PDT by lonestar (Obama is turning Bush's "mess" into a catastrophe.)
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To: nickcarraway
There's no reason for an investor to buy silver. That would be like investing in the dollar by buying dimes. What would be the point? Besides, industrial demand is declining as film becomes a thing of the past.

Silver will always be the weak sister of metals, but I admit it's pretty.

17 posted on 10/10/2009 8:35:25 AM PDT by Batrachian
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To: Cheetahcat
Gold has many uses one being wealth hedging while silver has more of an Industrial side.

Gold is more of an industrial metal these days, too. A lot of it is used in high speed electronics, particularly communications devices.

18 posted on 10/10/2009 8:42:02 AM PDT by Thermalseeker (Stop the insanity - Flush Congress!)
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To: Batrachian
What would be the point?

Motor contactors, switches, chip bonding epoxies and glasses, high-temperature solders and brazing materials...

Yeah, you know what you're talking about. /s

19 posted on 10/10/2009 8:43:49 AM PDT by Carry_Okie (Grovelnator Schwarzenkaiser, fashionable fascism one charade at a time.)
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To: Mr. K

Where can I find the article you reference?


20 posted on 10/10/2009 8:53:25 AM PDT by crosstimbers
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To: Batrachian

Actually Silver is widely used in electronics.


21 posted on 10/10/2009 8:53:30 AM PDT by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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To: ChessExpert; xzins; blue-duncan
I for one think that a lot of this is being fueled by gold speculators.

The dollar is in trouble, but since so much of the world is holding dollars, the rest of the world's economies are hanging on the strength of the dollar.

If the dollar goes down it will take the rest of the world with it. Countries like China and Saudi Arabia know this.

22 posted on 10/10/2009 9:02:10 AM PDT by P-Marlowe (LPFOKETT GAHCOEEP-w/o*)
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To: BGHater

Very interesting.

Congress likely played a role also. Bill Clinton had the benefit of Newt Gingrich “slashing” medicare etc. So with all that cruel budget “cuts” by Newt, kind Mr. Bill was able to “give us a surplus.”


23 posted on 10/10/2009 9:16:38 AM PDT by ChessExpert (The unemployment rate was 4.5% when Democrats took control of Congress. What is it today?)
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To: Mr. K
That sounds to me like a deliberate act of War.

How they value their property, even if it is our worthless IOU's, is their business. I don't get this act of war business. If we did not want them to have our IOU's, we should not have borrowed their stuff.

24 posted on 10/10/2009 9:23:08 AM PDT by Mark was here (The earth is bipolar. ---- "OBAMA: THE GREAT MISTAKE OF 2008")
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To: ChessExpert

FWIW, Robert Fisk who wrote this story on Monday in the Independent says that this is a long range plan to replace the dollar in the Petro states—more like a 9 year plan. Look for this to take effect by 2018...so says Fisk.


25 posted on 10/10/2009 9:27:38 AM PDT by RadioCirca1970 (Victory or Death in the War on Terror)
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To: Mr. K

Rule #1: Don’t panic.

Rule #2: If you have to panic, do it first.


26 posted on 10/10/2009 9:28:22 AM PDT by glorgau
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To: P-Marlowe

Could gold be the bubble that Housing and the DotComs used to be?


27 posted on 10/10/2009 9:28:57 AM PDT by RadioCirca1970 (Victory or Death in the War on Terror)
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To: RadioCirca1970
So the new normal is "Follow the Bubble?"
28 posted on 10/10/2009 9:33:05 AM PDT by norraad ("What light!">Blues Brothers)
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To: RadioCirca1970
Could gold be the bubble that Housing and the DotComs used to be?

It very well could be. I personally have no use for Gold. Rare coins, maybe, but Gold? It's just another pretty metal.

One of the problems with gold investing is that many companies just give you gold certificates, or you purchase gold futures and you don't have the metal in your possession. Then your investment is really in the honesty of the person who says they have it in a vault for you. Gold can be stolen by the people who say they are keeping it from you or by theives in the night.

Real Estate, as bad an investment as it may have been recently doesn't get up in the middle of the night and escape to a foreign country. Nobody can break into your house and steal your backyard.

29 posted on 10/10/2009 9:35:31 AM PDT by P-Marlowe (LPFOKETT GAHCOEEP-w/o*)
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To: P-Marlowe

That’s sort of my feeling too. I can’t guarantee the dollar won’t collapse, but we sure aren’t going to be the only ones hurt if it does.


30 posted on 10/10/2009 9:44:38 AM PDT by dawn53
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To: P-Marlowe
Nobody can break into your house and steal your backyard.

Wanna bet?

Government can regulate every dollar of value out of your real estate and in effect confiscate it while you still "own" it.

Of course since you still "own" it you still have to pay RE taxes even when you can't use it, sell it, or sometimes even stand on it.

Growth management acts are property confiscation no matter what the courts say.

Everyone gets hung up on FDR's gold confiscation and they never seem to worry that it's so much easier for government to seize your land. You can't hide it. You can't move it. It's there in the open for any bureaucrat to steal.

31 posted on 10/10/2009 9:45:46 AM PDT by seowulf (Petraeus, cross the Rubicon.)
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To: seowulf
Government can regulate every dollar of value out of your real estate and in effect confiscate it while you still "own" it.

They can do that with gold too. They could effectively shut down the gold market tomorrow by passing a law saying that you can't sell your gold to anyone but the Government. I think they did that once before.

There is no safe investment, unless you happen to have drugged all the horses in a race except one. And even then you can't be sure someone else didn't drug yours.

32 posted on 10/10/2009 9:50:36 AM PDT by P-Marlowe (LPFOKETT GAHCOEEP-w/o*)
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To: P-Marlowe
One of the problems with gold investing is that many companies just give you gold certificates, or you purchase gold futures and you don't have the metal in your possession.

So folks who buy gold in case the economy crashes are going to be left holding cute little certificates? May as well get Loser tattooed on your forehead.

33 posted on 10/10/2009 9:59:24 AM PDT by Mark was here (The earth is bipolar. ---- "OBAMA: THE GREAT MISTAKE OF 2008")
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To: P-Marlowe

“There is no safe investment”

True. Investments are only as safe and stable as the nation and system in which they are made. On the other hand, if I go out and buy 100 acres that I can grow food on, at least I can do that. Yes, I know that with government setting land taxes, and with the power of eminent domain even land is not safe. The problem is, you can’t eat Gold or Silver.

One other caveat is that it is somewhat ‘safe’ to invest in yourself. Learn a new skill etc. that makes you more capable of navigating this mess.


34 posted on 10/10/2009 10:00:35 AM PDT by pieceofthepuzzle
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To: Mark was here

Anyone who buys Gold and does not get the metal in their possession is buying nothing but a promise. Obama has promised a lot. Would you buy a gold certificate from Obama?


35 posted on 10/10/2009 10:03:10 AM PDT by P-Marlowe (LPFOKETT GAHCOEEP-w/o*)
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To: P-Marlowe
But in 1933 the dollar was on the gold standard. The FED internationalists would would rather go a world fiat rather than US gold backed FRN.

I still have not heard any rational FED cure for future inflation.

36 posted on 10/10/2009 10:05:52 AM PDT by endthematrix (The Name of the Game is BAILOUT.)
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To: Mark was here

Same as going to the bank, after a run, wanting to see if your savings are still there. Uh, no.


37 posted on 10/10/2009 10:09:25 AM PDT by endthematrix (The Name of the Game is BAILOUT.)
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To: endthematrix
But in 1933 the dollar was on the gold standard.

But that was only a "promise" as well. There was not enough gold in the world to back up every dollar that was in circulation in 1933. The dollar may have been "backed" by gold, but if the citizens ever demanded that the government give them gold for their dollars, they would have been paid about 1 cent on the dollar.

The "gold standard" was as much an empty promise as the Federal Reserve note is today.

38 posted on 10/10/2009 10:11:31 AM PDT by P-Marlowe (LPFOKETT GAHCOEEP-w/o*)
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To: P-Marlowe
Nobody can break into your house and steal your backyard.

Except your local taxing authority.

39 posted on 10/10/2009 10:13:23 AM PDT by GregoryFul
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To: Mr. K

$450B last week????
I’m still trying to determine the facts about the giant Chinese default on derivative last NOVEMBER!


40 posted on 10/10/2009 10:13:45 AM PDT by griswold3 (You think health care is expensive now? Just wait till it's FREE!)
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To: Cheetahcat

I was told Silver is good because it is used up in industrial processes. But I never made money on silver panic.


41 posted on 10/10/2009 10:15:14 AM PDT by omega4179 (pos approval rating -11)
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To: allmost

The global markets are looking ahead and finding it insane to continue to allow the US to have a monopoly on exchange.
Current Monetary and fiscal policy is doomed to fail.


42 posted on 10/10/2009 10:16:00 AM PDT by griswold3 (You think health care is expensive now? Just wait till it's FREE!)
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To: Mark was here

As opposed to those that bought stocks?


43 posted on 10/10/2009 10:16:20 AM PDT by omega4179 (pos approval rating -11)
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To: griswold3

If the dollar collapses so does the whole world.


44 posted on 10/10/2009 10:17:09 AM PDT by JaneNC (I)
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To: GregoryFul
Except your local taxing authority.

What is to stop the government from taxing gold as a luxury item and imposing a 10% luxury tax on every ounce of gold in your possession every year?

You think your gold is safe from government interference? Read your history. The government stole everyone's gold in 1933 and gave them worthless dollars in exchange at a rate that the government determined was fair. They can do it again. And if the dollar collapses, THEY WILL DO IT AGAIN!!!

45 posted on 10/10/2009 10:17:19 AM PDT by P-Marlowe (LPFOKETT GAHCOEEP-w/o*)
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To: glorgau

feelings of terror actually are a necessary force in free markets to counterbalance the irrational exuberance.

Comfortablly numb is not part of the free market, it’s part of the authoritarian society.


46 posted on 10/10/2009 10:19:38 AM PDT by griswold3 (You think health care is expensive now? Just wait till it's FREE!)
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To: P-Marlowe

How do they know you have gold in your possession and can they make you turn your gold in? It might be a lot harder to sell without some sort of confiscation, but they aren’t going to go on gold raids. Gun raids on the other hand I could see.


47 posted on 10/10/2009 10:25:00 AM PDT by Sawdring
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To: P-Marlowe
They could effectively shut down the gold market tomorrow by passing a law saying that you can't sell your gold to anyone but the Government. I think they did that once before.

Two words: black market.

There is no black market for real estate and I can't take it with me to parts unknown should the need arise.

It's good to have a little portable wealth, gold, silver, or whatever. It's also good to have some wealth outside the border.

48 posted on 10/10/2009 10:26:37 AM PDT by seowulf (Petraeus, cross the Rubicon.)
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To: P-Marlowe

Indeed, the trillion budgets are smoke and mirror. In the end the House always win, and that means a fascist mandate to go about and enslave every American.


49 posted on 10/10/2009 10:27:17 AM PDT by JudgemAll (control freaks, their world & their problem with my gun and my protecting my private party)
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To: omega4179
As opposed to those that bought stocks?

Stocks like those who had Kmart or GM stock? Kmart bought Sears, and told it's old stockholders they were welcome to buy new shares, as the old one were history.

The only save thing is something that would be in limited supply, like ammunition. Heck I don't know, I'm just an idiot with a little money in the bank, and thats it.

50 posted on 10/10/2009 10:29:52 AM PDT by Mark was here (The earth is bipolar. ---- "OBAMA: THE GREAT MISTAKE OF 2008")
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