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RHINEBECK, N.Y., Nov. 19 (UPI) -- A financial crisis will likely send the U.S. dollar into a free fall of as much as 90 percent and gold soaring to $2,000 an ounce, a trends researcher said.
"We are going to see economic times the likes of which no living person has seen," Trends Research Institute Director Gerald Celente said, forecasting a "Panic of 2008."
"The bigger they are, the harder they'll fall," he said in an interview with New York's Hudson Valley Business Journal.
Originally posted by yellowcard
Riddle me this, if the economy fails how would gold be of use at all?
If the economy collapses that does not mean all debts are wiped-out, people will still will want to be paid with something, also trade will continue. A barter system of trade does not work, so the oldest form of currency will be the one Market will as always will prefer, thus people are hedging their wealth by buying gold. Clear example is the value of gold has increased the last few days. Investors are voting with their feet on the fiat currency. They know what this bail-out means; more infusion of fiat into the system, thereby diluting people's wealth, so investors are trying to maintain the value of their wealth in a commodity that has been proven over time to be more reliable than the empty promises fiat backers give. And so as with any good, as demand INCREASES as it has been, prices must rise so no shortages are created. (see chart below)
Why would it be worth so much? Wouldn't demand drop for gold, thus causing the price to fall?
Forget the purchasing power of the dollar, relative to measured inflation over the past 200 years gold is flat.
I wouldn't say it is IMPOSSIBLE if the dollar continued to decline in its value, certainly if the other Central Banks wanted to maintain our currency, it would call for a collective intervention in the foreign exchange markets. And I'm not sure Central Banks around the world are willing to buy up our dollars at the cost of having their currency drop in value. If any Central Bank wanted to prop-up our dollar then they would have to purchase our currency while selling theirs, thus causing their country to devalue their currency at the risk of causing internal inflation. I doubt many countries want to risk having inflation in order to save us.
Anyhow, a 90% plunge is unlikely, especially overnight, to many countries, too many central banks have a vested interest in keeping the dollar a relatively strong currency.
Are you sure it's a great time to raise taxes? Our 401ks are in the crapper, some of us may not have a job in the near future, we have inflation, foreclosures are going up, and those of us that own homes are watching the value of our homes drop. I don't think anybody is going to raise taxes in the near future, not in this economy.
A 90% fall over an extended period of time would be possible, however before it reached that point it would be highly likely that taxes would be raised to pay off the debt causing dollar strength, treasuries would sell off and the higher yield would cause their to be less dollars, causing the dollar to gain strength.
I don't think people are ignoring economics. We have a choice:
But yeah, let's ignore economics for a second, panic!
Originally posted by burdman30ott6
-It has a high degree of electrical conductivity
-Gold can be hammered into paper thin sheets
-Gold is almost impenetrable by radiation (making it more effective than even lead)
Since it is an element, it can neither be created nor destroyed.