Posted on 09/18/2013 11:53:51 AM PDT by Rusty0604
Former World Bank Senior Counsel Karen Hudes says, “It’s pretty clear where we’re headed, and that is something called permanent gold backwardation. That’s a fancy word for people losing confidence in paper currency.
Hudes says even though the credit ratings agencies rate U.S. debt high, they know just the opposite is true. Hudes contends, “This is actually an underhanded move because they know the U.S. dollar is going to lose its status as an international currency.” What would that look like to the man on the street? Hudes predicts, “Prices would change on a daily basis. They would double. The number of families that would be employed would be in the minority . . . there would be lawlessness.”
(Excerpt) Read more at usawatchdog.com ...
“Nobody but nobody is going to be dumping dollars as a reserve currency”
Russia and China have agreed to do so.
“The federal deficit dropped by 350 billion this year to 650 billion from over 1 trillion.”
No, it hasn’t. It has only been postponed due to no budget, but the spending has still happened, it just isn’t on the books. That, and do you really believe $650 billion is healthy? “Gosh, we beat you less this time, comrade, why so glum?”
“historical replay of 1980.”
If you knew anything about 1980 you’d know it was manipulation. The price of silver and gold today are market driven.
“And as the dollar continues to rise, “
If you read the article you’d realize that cannot continue. We are not healthier compared to other currencies by much.
“historical replay of 1980.”
If you knew anything about 1980 you’d know it was manipulation. The price of silver and gold today are market driven.
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Yeah the price of silver was manipulated by the hunt brothers. but not gold. even still both gold and silver went up and down together.
“Nobody but nobody is going to be dumping dollars as a reserve currency”
Russia and China have agreed to do so.
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no they haven’t. what they have agreed to do is to NOT use dollars for trade between them—but rather their own currencies. the dollars they have in their bank vaults remain there as a store of value like gold.
And as the trade and federal deficits decline —the pressure on the dollar is upwards
Yes. And as the dollar continues to rise, foreign imports get cheaper and cheaper causing the trade deficit to rise yet again. Floating interest rates are always and everywhere a disaster waiting to happen.
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the upward pressure on the dollar of falling trade and federal deficits is met by downward pressure on the dollar by the various fed QE’s. The result is that the dollar has been going roughly sideways since 2008.
“The federal deficit dropped by 350 billion this year to 650 billion from over 1 trillion.”
No, it hasn’t. It has only been postponed due to no budget, but the spending has still happened, it just isn’t on the books.
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no the deficit reduction is real because of higher taxes and higher revenue generated by a growing economy. this growth in the economy has already turned blue state government budgets like California back into the black.
That, and do you really believe $650 billion is healthy? “Gosh, we beat you less this time, comrade, why so glum?
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No 650 billion is not healthy. However, if the deficit keeps declining at a pace even remotely like it has in the last year —then it will quickly return to normal ranges.
Obama will have had nothing to do with the balanced budget. It will all be about a growing economy—mostly in the oil patch—and the caps on spending imposed by the republican house.
Pretty much the same thing happened in the late 90’s. Clinton’s best brag is that he balanced the budget. Yet a balanced budget happened despite his best efforts not because of of. The growing economy produced the revenue and Newt kept the federal spending in check.
“However, if the deficit keeps declining at a pace even remotely like it has in the last year —then it will quickly return to normal ranges.”
You must be 18 and without any knowledge of economic trends to think one year makes for a trend.
P.S. It hasn’t even been but 3/4 a year and you and Obama are proclaiming a reduced deficit for an entire year. Obama is king of “revised” numbers. Get back to us in January after the year is complete and let’s see how reduced his numbers turn out. Just like his unemployment numbers, always reported to his favor and always revised against him later when no one is looking.
And he is smart, and does not care about “style points.” Which is good, because the only style we will be able to afford is in the salvation army store.
As we become more energy independent, watch the OPEC countries turn from the dollar to an SDR or gold.
Then the games will begin.
Out deficit has fallen. This is true.
But our debt has increased (except for the last 140 days or so.)
Deficits are worth noting. But in a higher interest environment, the size of the debt is going to be a problem. As we roll over more and more, those rates will have an impact. As we deal with more and more unfunded mandates, we will dip into that credit line.
I agree that there are some areas that are moving in the proper direction. I just think the inertia of the rising debt and the unfunded liabilities will squash the deficit improvements like a bug.
“The federal deficit dropped by 350 billion this year to 650 billion from over 1 trillion.”
Only because we hit the debt ceiling and Obama is doing his best to propagandize raising it. Let’s us know in January what the final deficit became.
As we become more energy independent, watch the OPEC countries turn from the dollar to an SDR or gold.
Then the games will begin.
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Agree that there are huge shifts underway in worldwide capital flows with loads of unanticipated consequences.
I agree that there are some areas that are moving in the proper direction. I just think the inertia of the rising debt and the unfunded liabilities will squash the deficit improvements like a bug.
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maybe so. I’m coming around to the opinion that there was a massive shift of capital flows back in the 1970’s away from the USA that funded overseas oil purchases to the tune of 300-500 billion annually. .... —(as well I think the offshoring of US industry is reversing) that these capital flows are reversing in the favor of the USA...with the result that there is going to be a lot more money in the USA than has been seen since the 60’s.
The current US admin of course will have had nothing to do with these successes...but they will take credit for it. same as happened in the late 90’s.
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