Posted on 11/25/2007 1:48:04 PM PST by jrsmc
RHINEBECK, N.Y., Nov. 19 (UPI) -- A financial crisis will likely send the U.S. dollar into a free fall of as much as 90 percent and gold soaring to $2,000 an ounce, a trends researcher said.
"We are going to see economic times the likes of which no living person has seen," Trends Research Institute Director Gerald Celente said, forecasting a "Panic of 2008."
Forecast: U.S. dollar could plunge 90 pct
(Excerpt) Read more at upi.com ...
Exactly! The same guys who brag they bought at $260 in 2001 won't tell us that they held $700 gold since 1980.
While not many people are in the market for a farm, everybody needs to buy or rent a house. They will buy if it is priced at a fair price they can afford.
This mess was created as greedy lenders made very risky loans to unqualified buyers to create high yield debt to sell to gullible investors.
In the end, that left unqualified buyers with loans they could never repay, it left housing prices artificially elevated by buyers with too much easily borrowed money, it left young home buyers priced out of the housing markets, it left the investors holding pieces of paper that had "SUCKER" stamped on them and it left the greedy loan brokers with lots of money in their pockets.
What will have to happen is that whoever ends up with ownership of the foreclosed property will have to swallow their financial losses and price the property at a fair market price that a family can afford with conventional financing without resorting to these idiotic loans that created this mess in the first place.
Then, the houses will sell, a new fair market value will be established and young buyers will once again be able to own a house without mortgaging their souls away.
I suppose a huge decline is possible if we lose our position as the global currency of choice for settlements. I remember reading that once the British Pound Sterling was replaced by the US Dollar in that role it lost 80% of its value. If I can find the article with that statistic I will post a link.
LBT
......
80% of what?
But I don't like Spam.
ROFLOL!!! How absurd and idiotic!!!! Any serious currency trader who espoused this KOOK ROT would hopefully get fired on the spot.
bttt
You can’t eat gold. That’s why the SPAM economy is our only hope in the upcoming crisis. At least you won’t go hungry.
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It can't, but NO ONE can. It's a world commodity. The difference is our suppliers - like China - aren't inflating prices simply because their currency increased. Any inflation we're seeing is from commodity prices increasing, not just financial markets jiggering about.
In the EU, it's the opposite - they can get the commodities for "less" than we pay (less of an increase), but they cannot pass those savings along since most of the cost of what they export is from labor and capital costs, no commodity items.
That difference is what's killing the EU, and why a weak dollar versus the Euro doesn't make much of a difference for the US and its trade allies.
“Can one smoke in a pub, though?”
Of course, but I am not a smoker.
Neidermeyer wrote: “Spaaam, Spaaam, Spaaam, Spaaaaaam!”
Thank you. I’m glad someone else sees the inherent value of SPAM. You, my FRiend, will surely survive the upcoming economic disaster.
I love that site. The related (I believe) che-mart.com is a winner, too.
Remember the problem in the S&L crisis? Valuation. An asset to be converted to cash is only worth what someone is willing to pay for it and not what you say or think it's worth.
PugetSoundSoldier wrote: “In the EU, it’s the opposite - they can get the commodities for “less” than we pay (less of an increase), but they cannot pass those savings along since most of the cost of what they export is from labor and capital costs, no commodity items.”
Ah, that makes sense. The EU pays less for oil since it’s priced in dollars, but they’re less competitive because it costs them more to produce something with the oil? Is that part of the reason why their prices are rising but not as fast as the exchange rate?
And those who lend money on gold at $1000 an ounce presuming it will go to $2000, will still have $500 an ounce worth of gold after foreclosure.
He acknowledges the following: dollar fall described in apocalyptic terms, US GDP is slowing, Subprime problems and so forth. He then goes on to quote GaveKal, an international research firm, believes the following:
FWIW the above points bear serious consideration. I note tonight on the Forex the Yen is weakening while the Euro and Pound are strengthening.
ping
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