This topic is in the Global Meltdown discussion forum. (rss)

What to invest in if new dollar makes old dollar worth 10 cents next year?

Topic started on 21-10-2008 @ 02:50 AM by Dbriefed

Credit to thread: www.abovetopsecret.com...

Where would you invest if the dollar is devalued to 10cents?

source

GEAB N°28 is available! Global systemic crisis Alert - Summer 2009: The US government defaults on its debt
- Public announcement GEAB N°28 (October 16, 2008) -

...

The « emergency repair » of international financial channels, achieved by the countries of the Eurozone at the beginning of this month of October 2008 (8), should not hide three fundamental facts:

• The “repair” was necessary to curb the panic that threatened to squander the entire global financial system in just a few weeks, but what it heals temporarily is merely a symptom. It has just bought a bit of time, two to three months maximum, as the global recession and the collapse of the US economy (the table above shows the staggering increase of US banks’ borrowings from the Fed) will speed up and create new tensions in the economic, social and political fields, that must be anticipated and coped with as soon as next month (as soon as the “financial packages” have been implemented)

• The huge financial means allocated worldwide for « emergency rescues » of the global financial system, though they were necessary to put back in order the system of credit, are lost for the real economy when it is on the verge of facing a global recession

• The « emergency repair » results in further marginalization, and therefore weakening, for the United States, because it sets up processes that are contrary to those advocated by Washington for the allocation of the Hank Paulson’s and Ben Bernanke’s 700-billion USD TARP: bank recapitalisation by governments (a decision Hank Paulson has now come to follow) and interbank loan guarantees (in fact Euroland governments substitute to credit insurers, a mostly American industry at the centre of global finance since decades). These trends turn more and more decision-making relays and financial flows away from the United-States when because of the explosion of their public (9) and private debt they need them more than ever; not to mention pensions going up in smoke (10).

The last aspect shows how, in the coming months, solutions to the crisis and to its various sequences (financial, economic, social and political) will increasingly diverge: what is good for the rest of the world will not be good for the United States (11), and now, Euroland in the first place, the rest of the world seems determined to make its own choices.

The sudden shock that will result from the US defaulting in summer 2009 is partly due to this decoupling of decision-making processes of the world’s largest economies with regard to the US. It is predictable and can be dampened if global players start to anticipate it. As a matter of fact, it is one of the topics developed in this 28th edition of the GEAB: LEAP/E2020 hopes that the September shock has “educated” the world’s political, economic and financial policy-makers and made them understand that it is easier to act by anticipation than in a panic.It would be a pity if Euroland, Asia and oil-producing countries, as well as US citizens of course, discover one morning of summer 2009 that, after a long-week-end or bank-holiday in the US, their US T-Bonds and Dollars are only worth 10 percent of their value because a « new Dollar » has just been imposed (12)."

[edit on 21-10-2008 by Dbriefed]

[edit on 21-10-2008 by Dbriefed]

[edit on 21-10-2008 by Dbriefed]

[edit on 21-10-2008 by Dbriefed]

[edit: fixed link and bbcode]

[edit on 21-10-2008 by 12m8keall2c]

Click here for more Global Meltdown topics
Hot Topics | Top Topics | This Week | Subscribe | Home

reply posted on 21-10-2008 @ 03:00 AM by Dbriefed

A follow-up interview:
Bloomberg / Marc Faber - Global economic slump is coming, governments will go bankrupt, and US government bankruptcy 'unavoidable' (7:00).

YouTube Link

[edit on 21-10-2008 by Dbriefed]

reply posted on 21-10-2008 @ 03:01 AM by TheRooster

I would take all the money you have and put it into carbon credits. Or if you're looking for a shorter term deal with a bigger upside before Christmas, I'd grab all the Elmo Live dolls you can get your hands on.

reply posted on 21-10-2008 @ 03:18 AM by Cyberbian

If the "recession" we are now in continues to model after the great depression, with the added bonus of hyper-inflation. In one year the dollar will be worth about 1/10 of one cent of it's value one year ago, when this decline started. I would welcome a dime on the dollar. You are far to generous.

If CEO's are not dragged from their offices kicking and screaming to restore confidence, trust will not be forthcoming and the global economy will melt like sugar candy in the rain. The "Fix" was an appeal to greed. Greed was the cause. So this is like throwing fire on gasoline to eliminate the flash hazard.

AboveTopSecret.com is advertising supported.

reply posted on 21-10-2008 @ 03:23 AM by Ian McLean

Invest in small antiquities with documented providance, toys in original packaging that are not yet inflated in price, strike a little side-deal with a local theater and stash away original movie posters.

Keep in mind storage costs over time, and keep it small and properly stored, simmer for 10-20 years, and smile.

reply posted on 21-10-2008 @ 04:46 AM by Anonymous ATS

Move it to commodities that have intrinsic value or foreign money.

If you just know how to buy stocks, you can buy GLD/SLV/CEF for commodities and things like FXY (yen), FXA (Australian Dollar), etc.

Do your own research before buying any one of them.. I personally threw my money into those to prepare for next 2 years.

reply posted on 21-10-2008 @ 05:40 AM by mythatsabigprobe

reply to post by Ian McLean

That's assuming there'll be any market for dolls and movie posters in the future. I think it's much more likely that you'll be burning crap like that to stay warm and wondering how many people you'll have to kill today for a can of spam.

reply posted on 21-10-2008 @ 05:44 AM by sadchild01

invest in gold and strategic metals like platinum , silver and precious gems

these are best to invest in during recession/depression

reply posted on 21-10-2008 @ 05:51 AM by dizziedame

Guns, gold, and ammo baby.

That's where it's at.

Guns will only go up in value and we know what gold does.

I believe there will be a market for both as both get more scarce.

reply posted on 21-10-2008 @ 09:23 AM by Dbriefed

I bought some gold...shares. The price went down when institutions were short on cash and sold gold for cash in huge amounts. There's a future risk that gold will be expropriated by broke governments like in the 1970s. Have you tried to sell physical gold for cash? It's like selling a used car to a dealer.

Many currencies are pegged to the dollar, at least other economies are hit when the US is, so other currencies may be only a temporary refuge.

AboveTopSecret.com is advertising supported.

reply posted on 21-10-2008 @ 09:43 AM by mybigunit

Originally posted by Dbriefed
I bought some gold...shares. The price went down when institutions were short on cash and sold gold for cash in huge amounts. There's a future risk that gold will be expropriated by broke governments like in the 1970s. Have you tried to sell physical gold for cash? It's like selling a used car to a dealer.

Many currencies are pegged to the dollar, at least other economies are hit when the US is, so other currencies may be only a temporary refuge.

I have had that same thought because Im about ready to go balls to the wall on buying actual gold bullion coins but have been hesitant for that reason. I have so much indecision right now but gosh gold to me seems like the best bet.

reply posted on 21-10-2008 @ 09:51 AM by Ian McLean

Originally posted by mythatsabigprobe
I think it's much more likely that you'll be burning crap like that to stay warm and wondering how many people you'll have to kill today for a can of spam.

Hope not. But if so, I can handle that. The survival forum here is a good resource, but everyone should know of such skills, even if they don't expect to have to use them. In fact, it's what you don't expect that you should try and plan for -- hedging your bets.

So, yes of course have food, shelter, clothing, a means of protecting yourself, liquid assets, and valuable skills that could support you in the worst of times.

But don't just plan for the worst, when there is room to also plan for the best. There's strength in diversity.

reply posted on 21-10-2008 @ 10:25 PM by netwarrior

reply to post by dizziedame

You got a star. Beans, Bullets, and Band-Aids. I have a friend that "invested" in ammo. If he got a wild hair and sold everything he has, he'd probably make 60% profit....in less than 8 years.