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?
Actually Silver is widely used in electronics.
The dollar is in trouble, but since so much of the world is holding dollars, the rest of the world's economies are hanging on the strength of the dollar.
If the dollar goes down it will take the rest of the world with it. Countries like China and Saudi Arabia know this.
Very interesting.
Congress likely played a role also. Bill Clinton had the benefit of Newt Gingrich “slashing” medicare etc. So with all that cruel budget “cuts” by Newt, kind Mr. Bill was able to “give us a surplus.”
How they value their property, even if it is our worthless IOU's, is their business. I don't get this act of war business. If we did not want them to have our IOU's, we should not have borrowed their stuff.
FWIW, Robert Fisk who wrote this story on Monday in the Independent says that this is a long range plan to replace the dollar in the Petro states—more like a 9 year plan. Look for this to take effect by 2018...so says Fisk.
Rule #1: Don’t panic.
Rule #2: If you have to panic, do it first.
Could gold be the bubble that Housing and the DotComs used to be?
It very well could be. I personally have no use for Gold. Rare coins, maybe, but Gold? It's just another pretty metal.
One of the problems with gold investing is that many companies just give you gold certificates, or you purchase gold futures and you don't have the metal in your possession. Then your investment is really in the honesty of the person who says they have it in a vault for you. Gold can be stolen by the people who say they are keeping it from you or by theives in the night.
Real Estate, as bad an investment as it may have been recently doesn't get up in the middle of the night and escape to a foreign country. Nobody can break into your house and steal your backyard.
That’s sort of my feeling too. I can’t guarantee the dollar won’t collapse, but we sure aren’t going to be the only ones hurt if it does.
Wanna bet?
Government can regulate every dollar of value out of your real estate and in effect confiscate it while you still "own" it.
Of course since you still "own" it you still have to pay RE taxes even when you can't use it, sell it, or sometimes even stand on it.
Growth management acts are property confiscation no matter what the courts say.
Everyone gets hung up on FDR's gold confiscation and they never seem to worry that it's so much easier for government to seize your land. You can't hide it. You can't move it. It's there in the open for any bureaucrat to steal.
They can do that with gold too. They could effectively shut down the gold market tomorrow by passing a law saying that you can't sell your gold to anyone but the Government. I think they did that once before.
There is no safe investment, unless you happen to have drugged all the horses in a race except one. And even then you can't be sure someone else didn't drug yours.
So folks who buy gold in case the economy crashes are going to be left holding cute little certificates? May as well get Loser tattooed on your forehead.
“There is no safe investment”
True. Investments are only as safe and stable as the nation and system in which they are made. On the other hand, if I go out and buy 100 acres that I can grow food on, at least I can do that. Yes, I know that with government setting land taxes, and with the power of eminent domain even land is not safe. The problem is, you can’t eat Gold or Silver.
One other caveat is that it is somewhat ‘safe’ to invest in yourself. Learn a new skill etc. that makes you more capable of navigating this mess.
Anyone who buys Gold and does not get the metal in their possession is buying nothing but a promise. Obama has promised a lot. Would you buy a gold certificate from Obama?
I still have not heard any rational FED cure for future inflation.
Same as going to the bank, after a run, wanting to see if your savings are still there. Uh, no.
But that was only a "promise" as well. There was not enough gold in the world to back up every dollar that was in circulation in 1933. The dollar may have been "backed" by gold, but if the citizens ever demanded that the government give them gold for their dollars, they would have been paid about 1 cent on the dollar.
The "gold standard" was as much an empty promise as the Federal Reserve note is today.
Except your local taxing authority.
$450B last week????
I’m still trying to determine the facts about the giant Chinese default on derivative last NOVEMBER!
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