The US dollar is DONE!

reply to post by weedwhacker


Well, we don't have anything near as bad as what Germany had at that time. We have inflation, they had HYPERinflation, where people were literally taking wheelbarrows full of money to the store to buy groceries. When hyperinflation happens, then we can and should panic.

reply to post by Spectre0o0


Thank you, Spectre, just read your post. I hope no one will consider this a one-line post in response...I just wished to thank a member for a reccomendation.

Best.

reply to post by chromatico


chromatico,

Yes, I did study the history of the HYPERinflation....but, my question stands: Although I do not trust the powers that be, we have not YET seen the HYPERinflation....yet.

In days of old, the HYPERinflation, although not 'designed' in as a mechanism of control, turned out to be a propaganda tool, after the fact.

If Elitists wish to exert control today, they will be much more sophisticated.

Any ideas of the REAL warning signs to watch out for?

reply to post by weedwhacker


What I wonder is whether this is engineered, or merely just massive stupidity coming home to roost. What evidence of engineering do you see?

reply to post by chromatico


chroma, I don't think I have any evidence of 'engineering'...I was drawn to this thread, because I wanted answers. I do not have answers, I seek....

all of you are on the ban wagon on this subject, if you are poor, then it sucks to have the dollar, i you are rich-then this is the time to invest big time, all the stocks are down, so you buy certain stocks pennies for the dollar. the U.S. is giant, with giant resource, the other euro countries are not aware of situation here, only from the stuff they see on the news, which is telling them the U.S. is weak. they people who are in financial trouble are people with homes(house payments), and without jobs. certain people i know are investing heavy, because eventually(when bush leaves) the markets are going to sky rocket, do you guys have and idea how hard its is in (reality) it is to bring down the economy of the United states, it would have to take something like at least 70% of the fortune 500 companies to go bankrupt.

if there's hyperinflation, I think it's too late to panic....

I found this interesting, and odd.....

Due to the OVERWHELMING demand for precious metals, our online ordering system has been unable to keep up with our customers’ needs. We have had to disable the APMEX ordering system to allow us ample time to upgrade our site to accommodate the increased demand. We apologize for this temporary problem. In the mean time, we will be accepting telephone orders for the following items only as we have them available:

www.apmex.com...

then they go on to say that's there's a m inimum order of $5,000 phone the phone order.....blocks us fr om purchasing from them....
but then, you look at the price of gold and silver it's dropped like a rock the last few days...would seem that people are dumping the metals or something the way it's dropped....doesn't make sense.

Originally posted by Attari
There is going to be a paniced reaction to try and stem the tide. War in one form or another will probably be used to divert attention. This will open the door for the enemies of the US to gain a moral high ground and gather support for a coalition to combat American expansion etc etc.

Hmmm suprise suprise Bin Laden makes an appearance.

reply to post by dawnstar

Hi dawnstar. Thanks for posting that APMEX ditty...you beat me to it.

How often have we watched Gold rise in the Asian market, only to get slammed in London & New York? This is mostly commercial paper trading designed to trigger a cascade of sell-stops in electronic trading platforms. As the price of Gold falls, it allows the perps to exit their short-of-Gold positions. This has the effect of temporarilly suppressing the price, which paints a happy face on the US Dollar and inflation expectations. Eventually Gold will bottom, consolidate, and resume its uptrend...wash - rinse - repeat. Expectations were rising for a round number correction at 1,000, the cartel exploited these expectations, and obliged (note that the take-down in Gold coincided with Tuesday's rate cut).

As you can see by that APMEX email, the paper trade is unrelated to retail demand. Dealers are running short on supply because seasoned investors are buying this dip knowing it's a fire sale in terms of where Gold is ultimately headed. You know...the time to buy is when blood is running in the streets etc. In an "un-managed" market, Tuesday's 75bp rate cut would be extremely bullish for the price of Gold. The counter-intuitive price action is another indicator that this was a cartel/central bank inspired correction.



[edit on 20-3-2008 by OBE1]

reply to post by chromatico


you talk about stupidity, but you apparently don't understand the fed,and the ability to "create money from nothing" the problem,and i'll keep it simple is overextended credit, and intrest.
it works like this the fed loans $10,say at 2%,so it expects to get back $12. the problem is that the fed only created $10,so where does the intrest come from? aliens? outer space? bankers selling pencils on a street corner? NO there is only $10 in circulation,because that's all the bank printed
well imagine that on a scale of trillions,along with the credit that was loaned and not being returned,and you wind up with a small problem.
well,sooner or later,and its later, it catches up. so you have two choices.eat the debt,which the fed isn't likely to do , or print more money. only problem is ,when you create more money ,you create inflation. this is why the fed(by the way, do you know what the fed is?)is making more money available,and dropping the intrest rate at the discount window,which is a place where banks borrow. they are also extending the time the banks have to pay it back from 1 day to 30. in the meantime,up go the mortgage rates,in order to bring money into the FAILING,OR ABOUT TO FAIL,banks.they are buying time. so you have to ask yourself,why are they buying time? SURVEY SAYS!, THE DOLLAR IS GOING IN THE BUCKET. THIS IS WHY COUNTRIES ARE SELLING OFF THEIR DOLLARS. NOBODY WANTS THEM ANYMORE,BECAUSE THERE IS NO MORE CONFIDENCE IN OUR FIAT CURRENCY.
if you want to find out what the dollar is worth,my disillusioned friend, go to kitco.com and in the lower right hand corner of the home page you will see in a box,just above the crude oil price, in caps USD. IF YOU CLICK ON IT YOU WILL SEE THE WAY A DOLLAR IS VALUED AROUND THE WORLD,AND WHAT CURRENCIES ARE USED.
PLEASE RESEARCH AND THEN BUY GOLD.


BY THE WAY WEED...NP YOU DESERVE IT. I LIKE PEOPLE THAT DO THEIR HOMEWORK!


[edit on 21-3-2008 by Spectre0o0]

[edit on 21-3-2008 by Spectre0o0]

reply to post by nwomi


yeah,thers no way for that bubble to burst. its as stable as the housing market. remember the famous last words"you can never get hurt with real estate!"
read the history of the fed. havent you figured out that they know to sell high,call in the loans,repossess everything.and buy back low?
they've only been using this dog and pony show since 1913! when will we wise up?
the only good thing is they passed laws to keep it lighter than 1929. but i think this one's gonna be a doozie!
oh and the market went up because the fed created 200 BILLION and dropped the intrest rate 1 point in 3 days. this is the 4th or 5th time they did this dance. next comes BIG INFLATION. JUST REMEMBER...IT DOESN'T MATTER WHAT WE THINK OF OUR CURRENCY,IT'S WHAT THE REST OF THE WORLD DOES.

This is a great thread with some excellent input and I’ve learned a few things… I would have to agree that there is cause for concern over the declining value of the US dollar; it’s not something I view with any joy, both because of the effects its slide must have on other countries as well as the harm it is already causing many Americans. I’m not an American but I understand the difference between a country’s political face and its “real” people. “Real” Americans -- flesh and blood people who work hard and care about the future -- are not the “America” that is getting presented to the world on a day-to-day basis. I’ve had a gutful of reading hateful comments and statements against “Americans” that lump 300 million people together and blame them all for the actions of a few -- actions which are not even supported by the majority of Americans anyway.

Please forgive my rant…It’s just that I do not take kindly to the gleefulness in the dollar’s decline that is implied by the original post‘s title. In my view such an attitude is not…helpful -- unless the intent is to support and/or encourage modes of thinking that influence that decline.

Realistic assessments of the economics of the situation, based on facts and not purely upon emotion, are another matter entirely. It’s essential for us to be well-informed, within the limits of our own ability to comprehend what the causes and effects actually are. Not being a trained economist, I for one very much appreciate the input from posters who have helped us in this regard. Yes, I appreciate that emotion plays a role in many forms of trading, but this is emotion linked to knowledge: an understanding of cause and effect. (I’m speaking of large-scale traders here, not the proverbial “small investors” worrying over the relatively few thousand dollars that they have tied up in investments of some kind. In their case, emotion can play a much larger role.) The key thing is that the emotional outlook of traders relates to market effects and is not (I hope!) driven by their “hatred” (or “love”) of an entire nation based upon the public actions of its leaders.

End of rant…

I’m quite happy to stand corrected but it seems that the sell-off of dollars is based upon two things: a perceived drop in the value of the US economy’s ability to support its currency, and the desire to make greater and greater profits (read “greed”) by trading the dollar down against other, key currencies because of this perception. This is very worrying. In the words of Berkshire Hathaway’s Warren Buffet (who knows a thing or two in terms of investing):

Our behaviour here [in the insurance sector] parallels that which we employ in financial markets: Be fearful when others are greedy, and be greedy when others are fearful.

(From Warren Buffet’s Letter to Shareholders, 2006, page 8. You may access the entire document here

Now this is only my opinion, but in respect of trading dollars, it looks like the majority of bigger traders in the money markets are being greedy right now; they are not running scared, they are trading like there’s no tomorrow. If I am right in that observation then there is reason for us to be fearful.

Mike.

(Edited to fix some text glitches.)

[edit on 21-3-2008 by JustMike]

reply to post by Attari


R.I.P.

I live and work in the USA, Long Island N.Y., and spend a great deal of time in Europe (Portugal, UK, Scandinavia, Finland, Russia, Czech Republic, Bulgaria). I am paid in US Dollars and the fact that 1 dollar only gets me .6 Euro, or .4 pounds doesn't bother me at all. I still manage to live, eat, travel and have fun. In fact, my standard of living is much higher then most people in those countries, so who cares if the dollar is weak at the present time? A couple of mouths ago it was strong, I saved a little, now it's weak, I spend a little more. If you don't have the money to travel to Europe do as all a favor and stay in the USA. I think we are all tired of American who think they can buy any European country with a couple of bucks, then end up staying in crappy hostels, eating in crappy restaurants, looking like beggars and giving all us other North Americans a bad name.

As for the bible, how would a couple of nut cases from the middle east now anything about the existence of America? They probably didn't even know about Madeira, Azores, the Canaries or the UK. They where stupid bums...live with it, or die I really don't care.

P.S.

Go back to your trailer park, lost somewhere in the bible belt, and stop giving us Americans a bad name, with your unwanted presence in Europe.

reply to post by OBE1


ya, I figure it's something like that. or maybe these investment funds having to dump their holdings in these commodities in an attempt to bail themselves out of the mess they are finding themselves in. kind of concerns me that ampex just blocked most of the little guys out from doing business from them with their $5,ooo minimum payment though. kind of like the ones who dumped it maybe wants to make sure it sticks around long enough for them to pick it back up at a reasonble price or something. I think they've been holding the prices down for awhile now with this kind of manipulation, but to be honest, if you can print your own money and paper claims to the commodity, well, they could keep doing this forever.

Are You Sitting Down?

Hey Ben! What's in Your Wallet?

20 March 2008

Did we just witness an historic first this week? Did the Federal Reserve Note just get debased by about fourteen percent? Is a portion of the Federal Reserve Note now backed by the private and illiquid obligations of Wall Street?

Here is an excerpt from the Fed's Balance Sheet that comes out in the H.41 report every Thursday after the markets close.

Only 86% of Federal Reserve notes, rightfully IOUs from the Fed or Federal Reserve Notes, are still backed by AAA debt obligations....There was quite a flash bang around Bear Stearns, the dollar and the metals this week. While we were distracted did Ben just cross the Rubicon by backing the FRN 'dollar' with junk?
Full Text

Let me get this right. 14% of the FRN' currently in circulation are now backed by junk paper? And a remaining $676,329MM (84%) currently backed government-held AAA securities are vulnerable to the upcoming TSLF swaps?

Your friendly, modified...Term Securities Lending Facility in action friends. Wait till the foreigners figure-it out.

Jesse can be a-little tongue-in-cheek...but always well researched. I think I can guarantee you won't find his annotated, Federal Reserve H.41 balance sheet being discussed on CNBC any time soon.

yup i mentoned this earlier in the week

however you notice the flight to liquid 3 month treasury's going on.

lowest yields in over 50 years! are people that spooked about the stock

market? that they accept negative returns (when inflation is included) in

wealth preservation mode.

OBE1 what is your take on the action on the 3 month treasury yield getting so low? perhaps people are anticipating an external event or sell off in the markets, and they would like to re-enter from a more profitable position in a few months.

also read this latest michael hudson article here (it's worth it)

www.counterpunch.org...

[edit on 21-3-2008 by cpdaman]

Just wishing to pop back in, and ask....

Have we been monitoring where the most wealthy, not only Americans, but the World's wealthy...where IS their wealth? I mean, in what currency?

Perhaps this is a path to follow....as in, 'follow the money'....

Just a thought....

reply to post by thesaints2012


has anyone heard ?? the AMERO " a fully minted north american currency?
mexico is to join - so canada , us , and mexico mabye some south american countries..
this is a result of a strong euro - planned to be implemented. currently being minted..
this is what i heard.. not sure what to make of it .. mabye it could be good for us.....

reply to post by monkeyshines


monkeyshines, what will the 'amero' be pegged to? I -mean- what is the foundaton for the currency? Others have noted that a Nation's currency is supported by its industry. The USA is exporting industry, Canada's is mostly lumber, maybe some oil...and Mexico's is...???? What, exactly? Tourism?

reply to post by cpdaman

Hi cp. Along with knee-jerk risk aversion, I suspect some of the recent money in bonds migrated over from commodities...haven't you heard?...the commodities bull was officially pronounced DOA..................again.

I've been looking for inflation to blow-up general equities, but the broad indices act more like the left rear tire on my truck. I've been nursing a slow-leak for over a year Used to have to re-inflate every three months or so, now it's every two weeks....and I still can't identify the leak.

If I look closer, maybe I am seeing inflation. Keeps looking like the market wants to deflate. I'm beginning to think raw inflation may be the only force holding it up.

GL