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Connecting the Dots on the Dollar

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posted on Sep, 17 2012 @ 03:36 PM
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I am not financial scholar but I do read. Wealthy players are dumping stocks. Not unusual but curious. The stock market is doing well or at least better than the last few years. Could they be bailing? According to the author they fear a market correction. So buy low, sell high makes sense but what are their indicators?

Then I read this. The latest job numbers were really bad despite the gains on Wall Street. But we all know Wall Street is no longer a true indicator of economic health.

Then I read this. QE3 is a ‘GO’. I think Peter Schiff can say it better than I can. While I know Mr. Schiff is trying to sell books, what he highlights is valid. Attempting to create fake value in real estate ***again*** will not work. I can see it doing no better the second time around. Are there really that many Americans stupid enough to fall for the same shell game part deux? Please don’t answer that.

What got me concerned was what I gleaned from this. China, all within the same two weeks as all the information above, will no longer trade for oil in dollars. Yikes! Now to be honest there were a few countries out there doing the same but nothing on this scale.

So…..

1. The Fed is cranking up the presses to buy more mortgage backed securities to the tune of $40 Billion/month. Who on Earth are they going to turn around and sell them to?

2. China is dumping the dollar for oil. If you do not understand how the petrodollar work, suffice to say, it is the sole reason the value of the dollar is high against other currencies in the world. Take that away and the prices at Wal-Mart shoot through the roof.

3. Those who make a killing dealing in money are getting out of dollar backed stocks. Gold is at an all time high as well as other commodities.

4. The job market sucks, in case no one was paying attention. For every person looking for a job, 4 have given up. On top of that, what is the quality of the jobs out there? A job at Starbucks does not strengthen the American economic picture like a job at a manufacturing plant selling widgets worldwide, even if they pay the same.

5. Oh, and an interesting nugget I just came across. In these same two weeks, Germany bought the New York Stock Exchange. I’ll wait to let that register.

So what does that mean to me? Well, a few things.

1. I am glad I have a job. I do not make much but me and my family are OK.

2. I am glad I have managed to save money over the years but I need to move it out of Treasuries. The purchasing value of that number on the page is looking to head south big-time very soon. How can it not?

3. I am less hesitant to purchase worthwhile, tangible items. They have value in their use and are a better holder of value than the dollars used to purchase them.

4. I am grateful my family supports and encourages my efforts to make us more independent. Whether it is growing things in the garden or making the things for our home with our hands, it is great.

What do you plan to do?




posted on Sep, 17 2012 @ 03:40 PM
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Originally posted by ABNARTY

What do you plan to do?


First - YIKES! is right.
Second - Boarding up the house and moving everything into the basement vis à vis Harry Cooper in "Night of the Living Dead" sounds like a plan.

This really doesn't look good.


edit on 9/17/2012 by this_is_who_we_are because: typo



posted on Sep, 17 2012 @ 03:41 PM
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reply to post by ABNARTY
 


It seems to me like more and more of America is actually owned by countries other than America...

What will happen when everything is American in spirit, but the license isn't?



posted on Sep, 17 2012 @ 03:54 PM
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reply to post by this_is_who_we_are
 


Night of the Living Dead....


2nd



posted on Sep, 17 2012 @ 03:55 PM
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reply to post by ABNARTY
 


S & F.
Great Post!
While the easily misled sheep on both sides of the political aisle froth at the mouth and bicker over the hyped up pseudo story of the week, you are looking at longterm and important realities.
Kudos.

edit on 17-9-2012 by pierregustavetoutant because: (no reason given)



posted on Sep, 17 2012 @ 03:55 PM
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reply to post by AfterInfinity
 


It seems that way doesn't it? I wonder what they will call the NYSE now?



posted on Sep, 17 2012 @ 03:59 PM
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Well i wonder what usually happens before a war :O seems like a economic collapse would go hand in hand with WW3



posted on Sep, 17 2012 @ 04:00 PM
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reply to post by pierregustavetoutant
 


Thanks. Again, I am not an expert but it seems pretty plain to me. I hope it improves.



posted on Sep, 17 2012 @ 04:01 PM
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reply to post by Newagekid2012
 


You know what? That is a dot I did not consider even though there are about 150 WWIII threads on ATS now. I have to consider how that fits into the picture.



posted on Sep, 17 2012 @ 04:07 PM
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Originally posted by ABNARTY
reply to post by this_is_who_we_are
 


Night of the Living Dead....


2nd


reply to post by ABNARTY
 


"This isn't actually the end of the world, it's only footage from the film "Night of the Living Dead". But the real end of the world will look a lot like it", he said.

- Obscure extrapolated and modified reference to a Dr. evil quote from Austin Powers.




edit on 9/17/2012 by this_is_who_we_are because: modified



posted on Sep, 17 2012 @ 10:58 PM
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There are so many unknowable variables that we can't be as certain about the future as many like to believe. I am very confident that an economic collapse is in our future, though. When is less certain. Given the right input variables it could happen tomorrow morning. Things might limp along for years. It might be a sudden calamity, or it might be a long slow death spiral. Other factors could impact things. War or major disaster.

Almost any scenario is possible. The US might whip China in a war and then the dollar come back stronger than ever. There are many examples of superpowers teetering on the brink of economic ruin and then come roaring back. China might whip the US, too. The thing about history (and that is what is in the making) is that so often seemingly unrelated ancillary things come into play and effect the outcome. Things that should not happen do happen.

It seems reasonable that the US will experience sharp inflation in the future, end up with a junk credit status, get into a war that it shouldn't have and get beat, become a totalitarian state, and generally end up a bad place to live.



posted on Sep, 17 2012 @ 11:16 PM
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I think we will all have some difficult decisions to make over the next couple years,right now make your $ count while it's worth something,buy things of actual use,think ahead..stop for a minute and imagine if everything tripled in price and you will know what to do,sure there's the unknown but at least you can prepare for what you do.
edit on 17-9-2012 by all2human because: (no reason given)



posted on Sep, 18 2012 @ 12:48 AM
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OP

Review your information sources.

IF QE3 (or anything else) is about to cause inflation, then those in the know would be BUYING stocks like crazy. Stocks are an inherent hedge against inflation because you buy them for dollars but your ownership is in terms of shares---thus inflation does not dilute your ownership. If the dollar becomes so devalued that a loaf of bread costs $10, then your shares will have pentupled as well, and your money will have the original purchasing power, while other people's money will have shrunk.

The only reason to dump stocks (If that is really what "they" are doing) is because of runaway DE-flation and a strengthening dollar. Or because the stock market itself is about to suspend operations.



posted on Sep, 18 2012 @ 12:53 AM
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reply to post by tovenar
 


Stagflation is more of a reality..



posted on Sep, 19 2012 @ 01:25 AM
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Actually the dollar is looking better overnight; the BOJ is doing their own QE. It's a definite hint that the G8 have a secret agreement to rotate the QE among their circle in order to spread out the intervention and make it look like the bear market in precious metals has some kind of depth to it.

I suspect that the immediate effect of QE-infinity is muted. The dollars (right now it's Yen) pumped into the economy are actually just being idled within institutional "liquidity accounts." It would be like the money is being printed by the treas, and then immediately wheelbarrowed down into the cellars of the big banks. It never sees the light of day; just gives them a bigger gun for the coming shootout.



posted on Sep, 19 2012 @ 08:10 PM
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reply to post by tovenar
 


Wow, you must have read deep. Not sure where you got the inflation thing. Those dumping stocks were more concerned about a market correction and lower consumer spending. Could inflation be in the mix, why not? Is it the only subject in the post?







 
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