Skip to comments.Is the Dollar Going to Collapse?
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. currencys 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?
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.
You omitted the link to the story.
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)
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”.
I think the first attack happened last fall.
Didn't thay award Barry Odumbo the Nobel prize in anticipation of that event?
He neglects to mention how the ratio between gold and silver is off.
Is the dollar going to collapse? Yes.
What is the best way to buy silver?
Silver will always be the weak sister of metals, but I admit it's pretty.
Gold is more of an industrial metal these days, too. A lot of it is used in high speed electronics, particularly communications devices.
Motor contactors, switches, chip bonding epoxies and glasses, high-temperature solders and brazing materials...
Yeah, you know what you're talking about. /s
Where can I find the article you reference?
Actually Silver is widely used in electronics.
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.
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.”
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.
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.
Rule #1: Don’t panic.
Rule #2: If you have to panic, do it first.
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.
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.
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.
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.
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.
“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.
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?
I still have not heard any rational FED cure for future inflation.
Same as going to the bank, after a run, wanting to see if your savings are still there. Uh, no.
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.
Except your local taxing authority.
$450B last week????
I’m still trying to determine the facts about the giant Chinese default on derivative last NOVEMBER!
I was told Silver is good because it is used up in industrial processes. But I never made money on silver panic.
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.
As opposed to those that bought stocks?
If the dollar collapses so does the whole world.
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!!!
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.
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.
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.
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.
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.