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But the credibility of both western governments and their currencies is waning, and has been ever since the gold standard was abandoned in 1971, says Mr Paul. And that means even “safe” investments are far from safe, he claims.
“People will start to abandon the dollar as current and past economic policies create a steep rise in interest rates,” Mr Paul says.
“If you are in Treasuries, you will need to be watchful and nimble to time your escape.”
Unfortunately, cashing out will not protect the value of investments, he insists, because “fiat” currencies will all decline over the coming years as measures to try to haul the world economy out of recession fail. “The current stimulus measures are making things a lot worse,” says Mr Paul.
“The US government just won’t allow the correction the economy needs.” He cites the mini-depression of 1921, which lasted just a year largely because insolvent companies were allowed to fail. “No one remembers that one. They’ll remember this one, because it will last 15 years.”
At some stage – Mr Paul estimates it will be between one and four years – the dollar will implode. “The dollar as a reserve standard is done,” he says. He sees little hope for other currencies where central banks have also created too much liquidity dating right back to the early 1970s.
“Europe and the US will both have to fundamentally change their money systems,” he adds.
And don’t even mention shares to Mr Paul: “The last place you want to be is in the stock market,” he says. “It may not bottom out for 10 years – just look at Japan.”
Of course, everyone has a view on the credit crisis, its causes and putative solutions. What differentiates Mr Paul is that he has been warning of the dangers to the world economy for nearly 40 years. “The breakdown of Bretton Woods was my motivation for running for Congress. I have been talking about the dangers ever since and warning that the control by central banks over the money supply would create an enormous bubble.”
A deep recession had only been avoided up until now because of the efforts of successive governments to reflate the economy. But there are no more policy levers left, says Mr Paul. “This is the big one.”
Full Article Here
Originally posted by network dude
reply to post by tide88
being as you can only help your cause by telling us what stocks you bought, please share with the rest of the class or spit out your gum now mister.
Man am I good or what?
The reason the prices are so low is because of the mass panic. Amex will be fine. If you are in it for the long haul you will bank. GE is also in great shape. It is just people panicking. You will see some of these financial start to rise in the next two weeks. BAC will be an 8$ stock in two month.
Originally posted by tide88
reply to post by baseball101
Glad I didnt listen to him. I started buying stocks 3 months ago. Man is it paying off now. I think you will see a flood of people start to getting into the market again. They dont wont to miss out on an opportunity to make money like this. It only happens once or twice a lifetime.
Originally posted by Matthew5012
reply to post by tide88
there is always money to be made but it doesnt mean he was wrong about this situation!
what do you think he is wrong about?
Those are two statements that I believe he is completely wrong about.
“The last place you want to be is in the stock market,” he says. “It may not bottom out for 10 years – just look at Japan.....They’ll remember this one, because it will last 15 years.”
A senior Chinese government official and economists said in remarks published on Monday that U.S. assets are still a safe investment option for China despite the Fed's decision to buy a large volume of Treasury debt.
Originally posted by tide88
reply to post by baseball101
Glad I didnt listen to him. I started buying stocks 3 months ago. Man is it paying off now. I think you will see a flood of people start to getting into the market again. They dont wont to miss out on an opportunity to make money like this. It only happens once or twice a lifetime.
Three months ago the market was much higher than it is now. Good attempt though
The worst part is that these superchains explode and the next thing you know tourists only eat at them when they travel...never grazing the local restaurants that have been a staple of the community they're visiting, eventually leading to their decline and disappearing