Posted on 05/20/2013 8:57:25 AM PDT by Sopater
Well, would you look at that graph.
Could the fed be providing printed dollars to the big banks with direction to lose it in poor trades on purpose? It could be a way of laundering all the printing that is being done. just a random thought on my part.
I remember giving up on this guy Paul Craig Roberts at least 10 years ago when he appeared to go over the deep end. I mean, the guy sounded crazy as a loon. He makes sense here. Maybe he found the right meds cocktail.
Everything has been all about saving the dollar and maintaining it as the world reserve currency. When the Bildeberger Cabal moves away from the dollar as the primary reserve currency............the gig is up. Or, there will be another world war.
Power corrupts; and we know about absolute power. The best thing that could happen to the US would be for the world to move to another reserve currency.
no, this is insane as well
the one thought that keeps recurring here is that.... even if the gold and silver markets are being manipulated downwards... this can only be temporary ... as the USD naturally continues to lose value as more and more are “printed”... as this continues to happen, the market prices of all commodities and especially those associated with value like gold and silver ... will be forced up over time
it is like a water bed, push down here and it goes up there
or else what?
Wow. How did I miss that the feds shut down bitcoin trading? I didn’t see this in the news at all. Thanks for posting.
My sentiments, exactly. What he wrote here is very plausible.
Here’s a story in the Bitcoin issue: http://www.freerepublic.com/focus/f-news/3019957/posts
the question is not whether the future of the dollar is bad or not, it’s whether it’s worse or better than it was the day before. Lately, with the ECB and BOJ having to renew their easings yet again, and the Japanese MOF actively wishing the yen lower, the Dollar, as bad as you or I may think it is, it better than the two largest alternatives.
And the budget deficit in the US is declining, and the hawks on the Fed are making rumblings of slowly ending QE, and the stock market is going ballistic. There’s a LOT of reasons why the “last refuge” investment of precious metals are trading like crap relative to dollar based assets.
And the budget deficit in the US is declining, and the hawks on the Fed are making rumblings of slowly ending QE, and the stock market is going ballistic. There’s a LOT of reasons why the “last refuge” investment of precious metals are trading like crap relative to dollar based assets.\
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Here’s a few more. The budget deficit is not just declining—its almost going to be cut in half in 2013—to 640 billion. That’s mostly the result of economic growth. If growth keeps up—the deficit will be gone in two years or so.
US economic growth is largely underpinned by the second thing that pushing the dollar up: OIL. The USA is delivering oil supply shocks to the world. We are inverting the events of 1973. Two things happened that year. The opening of the Watergate hearings that investigated Nixons efforts to influence the 1972 election. Also in 1973, came the first oil embargo—which jacked up the price of oil by reducing the supply. Now remember what happened in the next six years—that is between 1973-1979— to the price of GOLD.
What’s happening this year is the inverse of that. This time the dems/obama are on the hot seat for election irregularities. Oil supplies by the US are increasing every year. The US is slated to be oil INDEPENDENT in 4-5 years. This is just enormous. It means among many other things that the US government receipts are going to be so great that government deficits will shrink to relative nothing.
As well, the US dollar has had 75-150 trillion dollars worth of oil reserves added to back the dollar.\
Oil independent countries generally don’t have weak currencies.
What do you think this will do to the price of oil over the next 6 years? (read it this way. Any old gold bug over 60 years old who knows his history — is going to bail out of gold. Period.)
Last point. This one is speculative. There is a growing sense that Obamacare doesn’t have a future. imho the Supreme Court will knock down obamacare later in the year.
With Obamacare out of the way US growth rates imho will tack on another 1.5% annually. This will significantly slash the federal budget deficits—which will help collapse federal borrowing.
Are you assuming that spending will not increase to swallow up any gains in revenue?
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Sequestration & house republicans are holding the line on new spending
There is a growing sense that Obamacare doesn’t have a future. imho the Supreme Court will knock down obamacare later in the year.
Really? on what grounds? This would be wonderful news, but I’m sceptical.
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Agree that this one is speculative. I think the supreme court will knock it down later in the year because they fast tracked a new challenge to obamacare so that it would arrive at the supreme court this fall. The supremes actively pushed this obamacare challenge. Why would they do this? There are several reasons. But the most obvious one is that they declared Obamacare’s chief funding provision to be a tax. By doing this they made it possible to rule the entire piece of legislation to be unconstitutional because the legislation had its origins in the senate. All tax legislation has to originate in the house. Therefor the law is unconstitutional on technical grounds.
Anyhow, that’s my WAG (wild ass guess). As I mentioned the Obamacare biz is purely speculative.
Now this is something that doesn’t make sense to me. Although the “deficit” may be declining, it is still a deficit, so the debt continues to climb.
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Now this is something that doesn’t make sense to me. Although the “deficit” may be declining, it is still a deficit, so the debt continues to climb.
True. However, deficits of 100-300 dollars on a budget of 3 trillion —don’t undermine the dollar like deficits of 1.5 trillion year after year. More importantly, advanced federal revenues derived from a a true oil economy—threaten to balance the budget in a couple years.
The value of the dollar like the value of stocks — is based on future earnings — not on past performance.
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Also, there is no proposed plan that has any real legs to turn the deficit into a surplus, so the debt should be expected to continue to increase into the foreseeable future.
I absolutely agree that there is no plan in place or proposed that will turn the deficit into a surplus. In fact, I would argue that deficits will turn to surpluses DESPITE the very best efforts of the Obama administration to saddle the US with unmanageable debts forever. Deficits will turn to surpluses because of the fracking revolution
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How is the growing debt not a significantly bigger factor on the value of the dollar than a declining deficit?
Under a shrunken deficit regime ==while the debt does grow —the debt’s percentage of the economy declines.
But what’s in play is not just a shrunken deficit—but the possibility that the deficit will be eliminated altogether in 2-3 short years. That’s huge.
However, I expect that 0bama will take full credit.
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Agree. Clinton did the same with Gingrich in the 90’s. He fought Newt tooth and nail and totally ruined Newt’s reputation and then took credit for Newt’s work that restrained government spending while the economy grew the government out of debt. Same thing is in play this time.
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