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Originally posted by ZeroKnowledge
Salt, soap, food supplies and such. Since if dollar would fall, it will take down economies of all the countries in the world - including "only economic-financial superpower". Maybe Zimbabwe will remain as it is - since sinking lower it simply cannot.
I do not think that dollar will fail - nobody will let it fall. But if i did i would be stocking supplies in tons. It will cost more then gold or even platinum if your scenario will be correct.
Originally posted by sadchild01
the alternatives are :
3) Yuan (currency of China, the only economic-financial superpower of the world)
4) platinum (problem is its too expensive)
Originally posted by sadchild01
I suggest you refer to economist Peter Schiff on this issue , according to him , China will not collapse, while USA will ...
China is already giving massives stimuluses to its internal economy , and yes Yuan is on the verge of becoming a global reserve currency
Notice how when the U.S. economy slowed it started dragging down everyone elses including China's? with globalization if the largest economy gets in trouble it brings down the next smaller one, which brings down the next and the next and the next until eventually it collapses every economy. Now if the smaller economies slowed before the larger economies it wouldn't be so bad as the larger economies would absorb the stress of the smaller economies.
Originally posted by NickT916
what can you do with your hard earned cash before it shrinks to toilet paper??
get ready to live of the land, maybe not far from river or lake for water, and not far from forest to possibly hunt if needed
Originally posted by wayno
The advice to buy gold has haunted me for a while now, but I keep getting stuck on the notion of what to do with it once you have it. Where do you keep it so its safe and secure? How do you buy a gallon of milk with it? If everything collapses...
Originally posted by Helig
Gold and Silver eh? ...
...A bar of gold wont till a garden for me, field dress a deer, or pump water.
Originally posted by Make Speed Limit 45
Everyone should have some gold stashed away.
Originally posted by WyrdeOne
Gold is not a survival investment, in the strictest sense. It is a forward-looking, long-term capital investment, nothing more, nothing less.
Schiff's Investment Thesis
* US Dollar Will Go To Zero (Hyperinflation).
* Decoupling (The rest of the world would be immune to a US slowdown.
* Buy foreign equities and commodities and hold them with no exit strategy.
12 Ways Schiff Was Wrong in 2008
* Wrong about hyperinflation
* Wrong about the dollar
* Wrong about commodities except for gold
* Wrong about foreign currencies except for the Yen
* Wrong about foreign equities
* Wrong in timing
* Wrong in risk management
* Wrong in buy and hold thesis
* Wrong on decoupling
* Wrong on China
* Wrong on US treasuries
* Wrong on interest rates, both foreign and domestic
# Wrong about hyperinflation # Wrong about the dollar
# Wrong about commodities except for gold # Wrong about foreign currencies except for the Yen
# Wrong on China # Wrong on US treasuries # Wrong on interest rates, both foreign and domestic
anyone can claim the economy is going to have problems within X amount of time. they have a 50/50 chance of being right. But I just showed you a list of 12 things he "predicted" would happen in 2008 that never came to pass and is now back peddling saying he meant 2009
The full text of his response is after the jump.
My popularity on television and the internet has led a very small money manager to use his popular financial blog to promote his fledgling business by attacking the recent poor performance of my long-term investment strategy. The post is causing quite a stir and compels me to provide some badly needed context.
To achieve his ends, this individual has distorted much of what I have been saying and writing, and has twisted the facts to support his own preconceived conclusion. In essence, his piece is nothing more than an overt advertisement (and a highly deceptive one at that) to use my popularity to advance his career. In so doing he has given my critics, particularly some who have been embarrassed by their roles in the "Peter Schiff was Right" video, their moments of retribution. In addition, some members of the press who have never been among my greatest fans are seizing the opportunity to discredit me as well.
The crux of the blogger's arguments are that my beliefs in "decoupling, hyperinflation, and that the dollar is going to zero" have been completely discredited by the events of 2008, and that the resulting investment losses suffered by my clients last year confirms the fatal flaws in my approach.
In addition to mischaracterizing many of my beliefs, he also is confusing short-term market fluctuations with long-term economic trends.[/b
First of all, the hyper inflation issue is a straw man at best. While I often talk about the possibility of hyper inflation, I have always said that it would be a worse-case scenario that would play out over many years. The fact that it did not appear in the first year of the economic crash (2008) does not invalidate my position. I have always maintained that this worst-case scenario will likely be avoided by what will ultimately be a dramatic shift in policy once our leaders come to their senses. However, until then the dollar will likely lose a substantial portion of its value.
Second, I never said that the dollar would go to zero, either in 2008 or any year thereafter. I have said that in the event of hyper inflation the dollar's value would approach zero. My actual forecast in my book "Crash Proof" was that the Dollar Index would fall to 40 (currently about 85), with a realistic worst case scenario, assuming very high but not hyper inflation, of 20 or lower.
Third, the blogger points out that because the decoupling theory (foreign economies improving while the U.S. falters) that I wrote about in "Crash Proof" has yet to occur, that the theory itself was ridiculous. In my book I wrote that this process would not occur overnight, that initially our creditors would come to our aid, and in so doing our problems would become manifest abroad. I wrote that it would take time for the world to realize that what had been decoupled from the economic train was not the engine but the caboose. In fact, that is precisely the way it is playing out.
Chapter Ten of "Crash Proof" is specifically focused on the need to keep funds liquid to take advantage of the buying opportunity that would initially develop once our stock market began its collapse. I specifically mentioned that when U.S. stocks began to fall, we could expect sympathetic declines overseas. While I did not know the precise timing of those events, I advised readers to prepare.
I did not expect the huge dollar rally of 2008. But to discredit my long-term view of the dollar based on an eight month move is absurd. So while I believed that a weak dollar would cushion the temporary decline I expected in foreign stocks, a strong dollar ended up exacerbating it. In the meantime, I believed that the high dividends these stocks were paying would make it easier to ride out any correction. The problem was that the dollar fell so far leading up to the crisis (in 2005-2007) that by the time the crisis finally erupted the dollar was poised for a bounce.
Central to the argument that my investment thesis is wrong is the belief that the crisis is over or that the recent trends will continue until it is. But the crisis is just beginning and the movements thus far in the dollar, commodities, and foreign stocks, are mere head fakes. Once the speculators have been flushed from the markets, the underlying long-term trends I have been following should return in earnest.
To illustrate the flaws in my investment strategy the blogger has posted a client's statement that shows a loss in excess of 60%. In addition, he claims to know of other Euro Pacific clients who have experienced similar losses. The inference of course is that most, or all, of my clients must have suffered similar losses, and the existence of such losses proves that I am wrong. In fact, some have gone a step further, claiming that such losses prove that I am a fraud.
First let's deal with the one client's account. I have been following several key investment themes for the past ten years. The basis for my strategy is that recent U.S. prosperity has been false, and that the consequences of the bursting of our bubble economy would ultimately play out in a substantial decline in the value of the U.S. dollar, higher commodity prices, the re-monetization of gold, and foreign equities substantially outperforming U.S. markets. From an investment perspective, those themes played out extremely well in the eight years from 2000-2007. Recently we have seen a sharp, and I believe temporary, reversal of these trends. Those that came late to the party (at least based on where we are today) now have to ride out a particularly difficult correction.