Posted on 10/10/2009 8:02:36 AM PDT by ChessExpert
Rumors are flying that secret meetings are taking place between Arab states, China, Russia, Japan and France, to dump the dollar and replace the U.S. currency’s role in the pricing of oil. The dollar fell against the euro, yen and Swiss franc, while gold hit new highs of $1,041 an ounce.
Is there any truth to the rumors that the dollar is being replaced by a basket of foreign currencies, and what will be the impact your investments and the U.S. economy?
We can count an increase in real income as a success. Did we need all this inflation to achieve it? I certainly don't think so.
Some economists have argued that some inflation may be beneficial due to the (alleged) “stickiness” of wages in a downward direction. For example, if we have two percent inflation per year, wages in a declining field might be held constant. That would be a 2% reduction in real terms. It is claimed that this is easier for people to accept compared to an outright reduction of wages in a noninflationary environment. There is a reduced likelihood of strikes or other labor disruption.
It's an argument, but I'm not sure I buy it. People are pretty smart and adaptable. They can understand wage reductions, or layoffs. Perhaps a clear signal is better than a policy of deception.
It is hard for me to see any merit to inflation above 2% per year.
in the old days, a freepathon would be a short event....
so lets get this one wrapped up quickly...do it now.....thanks....
We've supported the mid-east oil exporters and China etc...what happens when our large economy no longer buys their stuff?
Nam Vet
The dollar WILL NOT COLLAPSE.
It will probably erode away.
If you have a small or undiversified economy, your currency can collapse overnite, like the world trade center.
If you are really big like the US, your currency can slowly erode away like a mountain, but it won’t do the overnite belly up like some small countries like Iceland.
The problem is (and it’s a big problem) gold isn’t money anymore. A confiscation scenario isn’t going to happen, or if it were, there would be far greater things to worry about, and regardless would be widely and utterly ignored. The real issue of a credible currency is trust in government, rule of law, property rights, human rights, etc. Do you think people trust government right now?
In the ‘70’s, my father decided to buy gold. He was offered a gold certificate or gold coin. Let’s see, which would be better - a piece of paper or the actual coin. He picked the coin.
A few months later, that company went belly up and left a lot of people holding pieces of paper.
His thought was that if he or my mother had to be put in a nursing home, I would have gold coins to pay them some little extra’s. Fortunately, I didn’t have to do that.
The “man you spoke with” is pulling a scam.
Lots of misconceptions on that. The 10k reporting requirement refers to CASH. Write a check, paid by check, no problem. Yes, there’s a record of that, which is why the reporting requirements for cash itself.
That makes sense. I hope you are right!
One implication is that one might do well to invest elsewhere, buying on dips. I've read that there is more leverage investing in gold miners, than in gold itself. But one can invest in mining generally: gold, silver, copper, etc. One can even invest in commodities generally. One can also invest in foreign stocks and bonds. These are all bets against the dollar.
Why bet against the dollar? Because of the massive debt put in place by Obama and the Democrats. As things stand, it seems we will have a sly defaulting on the debt through future inflation. As an alternative, it is conceivable that we could grow our way out of this problem. But the Democratic policies are not growth policies; they are contraction policies.
Total world output of silver for 2006 was 19,961 tons, versus 2,343 tons for gold. So, are you one of those who think that gold is somehow a more common metal? The price differential between the two metals should have tipped you off. Silver is a far more common metal in terms of current and historic production. I won't bother responding to the other boneheads.
ping tt myself
The store of value held in gold by American citizens may be insignificant these days.
When I’ve purchased gold or silver or collectibles, I’ve never been asked for SSn, etc., just certified $ for goods. Lots of people use a name identical to mine. The records are my own business.
btt
I sort of agree with you, but property taxes are not a recent commie phenomenon, either. They were around right from the git-go. For just one example, the Fire Department.
Different stations used to fight each other on the way to a fire! However, it wasn’t “universal service” either. You paid yer dues, and install a plaque on your house that proved the insurance was paid up. Otherwise the house might just burn... The point is, “civilization” is not the default, all those things we take for granted as a society cost money.
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