Collapse of the dollar and how to invest

[4plexowner]

mixxalot – I have read that 0.60 might be where the dollar is headed over the next 2 or 3 years – current level is around 0.76 so 0.60 represents a 21% decline – all of the central banks are in a race to devalue their currencies – Google ‘competitive devaluation’ if you want to read more – I’m not sure what prize awaits the first currency to reach zero but it must be a good one – US currently expanding money supply by about 17% per year according to reconstructed M3 numbers (http://www.nowandfutures.com/key_stats.html)

tons of stuff in the archives about gold – I hold GLD, SLV and CEF in my 401K (stopped out of NG recently)

George Ure (www.urbansurvival.com) has suggested in the past that one could plan a trading strategy around the idea of competitive devaluations – understand that all central banks are in a devaluation race (ie, managing their currencies downward) and trade the commodity markets accordingly – I got a very good entry into some March 2008 call options on the corn futures market by waiting for a day when the dollar rallied and corn over-reacted on the downside

[34f3f3f]

Here’s a few paras from a website: http://www.honestmoneyreport.com/archives/2005/1026.html

It has been pointed in out in the media that one of the initial reasons that gold goes up is because the currency it is priced in (U.S. dollars) is experiencing devaluation.

In other words, the purchasing power of the U.S. dollar is falling, causing more units of money (quantity) or a higher price, needed to buy gold. This is also known as currency debasement, a.k.a. inflation.

However, there is not a one-to-one causal ratio between currency devaluation and the increase in the price of gold as denominated in that same currency.

For example, the price of gold in U.S. dollar bills has increased from a low of $257 in 2001, to a recent high of $475.50 in 2005. This represents an increase of approximately 86%.

During the same 4-year span of time (2001-2005), the U.S. dollar has fallen approximately 33%. This means the price of gold has gone up 2.6 times more compared to the rate the dollar has gone down. Clearly there is more involved then just the existing devaluation of the reserve currency.

[34f3f3f]

Here’s a few paras from a website: http://www.honestmoneyreport.com/archives/2005/1026.html

It has been pointed in out in the media that one of the initial reasons that gold goes up is because the currency it is priced in (U.S. dollars) is experiencing devaluation.

In other words, the purchasing power of the U.S. dollar is falling, causing more units of money (quantity) or a higher price, needed to buy gold. This is also known as currency debasement, a.k.a. inflation.

However, there is not a one-to-one causal ratio between currency devaluation and the increase in the price of gold as denominated in that same currency.

For example, the price of gold in U.S. dollar bills has increased from a low of $257 in 2001, to a recent high of $475.50 in 2005. This represents an increase of approximately 86%.

During the same 4-year span of time (2001-2005), the U.S. dollar has fallen approximately 33%. This means the price of gold has gone up 2.6 times more compared to the rate the dollar has gone down. Clearly there is more involved then just the existing devaluation of the reserve currency.

[34f3f3f]

Here’s a few paras from a website: http://www.honestmoneyreport.com/archives/2005/1026.html

It has been pointed in out in the media that one of the initial reasons that gold goes up is because the currency it is priced in (U.S. dollars) is experiencing devaluation.

In other words, the purchasing power of the U.S. dollar is falling, causing more units of money (quantity) or a higher price, needed to buy gold. This is also known as currency debasement, a.k.a. inflation.

However, there is not a one-to-one causal ratio between currency devaluation and the increase in the price of gold as denominated in that same currency.

For example, the price of gold in U.S. dollar bills has increased from a low of $257 in 2001, to a recent high of $475.50 in 2005. This represents an increase of approximately 86%.

During the same 4-year span of time (2001-2005), the U.S. dollar has fallen approximately 33%. This means the price of gold has gone up 2.6 times more compared to the rate the dollar has gone down. Clearly there is more involved then just the existing devaluation of the reserve currency.

[34f3f3f]

Here’s a few paras from a website: http://www.honestmoneyreport.com/archives/2005/1026.html

It has been pointed in out in the media that one of the initial reasons that gold goes up is because the currency it is priced in (U.S. dollars) is experiencing devaluation.

In other words, the purchasing power of the U.S. dollar is falling, causing more units of money (quantity) or a higher price, needed to buy gold. This is also known as currency debasement, a.k.a. inflation.

However, there is not a one-to-one causal ratio between currency devaluation and the increase in the price of gold as denominated in that same currency.

For example, the price of gold in U.S. dollar bills has increased from a low of $257 in 2001, to a recent high of $475.50 in 2005. This represents an increase of approximately 86%.

During the same 4-year span of time (2001-2005), the U.S. dollar has fallen approximately 33%. This means the price of gold has gone up 2.6 times more compared to the rate the dollar has gone down. Clearly there is more involved then just the existing devaluation of the reserve currency.

[34f3f3f]

Here’s a few paras from a website: http://www.honestmoneyreport.com/archives/2005/1026.html

It has been pointed in out in the media that one of the initial reasons that gold goes up is because the currency it is priced in (U.S. dollars) is experiencing devaluation.

In other words, the purchasing power of the U.S. dollar is falling, causing more units of money (quantity) or a higher price, needed to buy gold. This is also known as currency debasement, a.k.a. inflation.

However, there is not a one-to-one causal ratio between currency devaluation and the increase in the price of gold as denominated in that same currency.

For example, the price of gold in U.S. dollar bills has increased from a low of $257 in 2001, to a recent high of $475.50 in 2005. This represents an increase of approximately 86%.

During the same 4-year span of time (2001-2005), the U.S. dollar has fallen approximately 33%. This means the price of gold has gone up 2.6 times more compared to the rate the dollar has gone down. Clearly there is more involved then just the existing devaluation of the reserve currency.

[(former)FormerSanDiegan]

“If you think the dollar is going to zero, save most of your money to pay for a psychiatrist.”

Do you think that was constructive Chris? Is this shift towards the positive that you want to see supposed to be on a selective basis? It looks like you just came over here to kick someone.

Come on. He offered a very clear, solid pure play recommendation immediately following the sentence quoted above. What’s wrong with a bit of satire tossed in here and there ?

[(former)FormerSanDiegan]

“If you think the dollar is going to zero, save most of your money to pay for a psychiatrist.”

Do you think that was constructive Chris? Is this shift towards the positive that you want to see supposed to be on a selective basis? It looks like you just came over here to kick someone.

Come on. He offered a very clear, solid pure play recommendation immediately following the sentence quoted above. What’s wrong with a bit of satire tossed in here and there ?

[(former)FormerSanDiegan]

“If you think the dollar is going to zero, save most of your money to pay for a psychiatrist.”

Do you think that was constructive Chris? Is this shift towards the positive that you want to see supposed to be on a selective basis? It looks like you just came over here to kick someone.

Come on. He offered a very clear, solid pure play recommendation immediately following the sentence quoted above. What’s wrong with a bit of satire tossed in here and there ?

[(former)FormerSanDiegan]

“If you think the dollar is going to zero, save most of your money to pay for a psychiatrist.”

Do you think that was constructive Chris? Is this shift towards the positive that you want to see supposed to be on a selective basis? It looks like you just came over here to kick someone.

Come on. He offered a very clear, solid pure play recommendation immediately following the sentence quoted above. What’s wrong with a bit of satire tossed in here and there ?

[(former)FormerSanDiegan]

“If you think the dollar is going to zero, save most of your money to pay for a psychiatrist.”

Do you think that was constructive Chris? Is this shift towards the positive that you want to see supposed to be on a selective basis? It looks like you just came over here to kick someone.

Come on. He offered a very clear, solid pure play recommendation immediately following the sentence quoted above. What’s wrong with a bit of satire tossed in here and there ?

[mixxalot]

You have no clue on what is really going on.

I have watched the fall of dollar in past 10 years and rise of gold and oil. When you money is worthless let me know how it works out for you. Until then I will invest in gold and avoid losing my savings.

[mixxalot]

You have no clue on what is really going on.

I have watched the fall of dollar in past 10 years and rise of gold and oil. When you money is worthless let me know how it works out for you. Until then I will invest in gold and avoid losing my savings.

[mixxalot]

You have no clue on what is really going on.

I have watched the fall of dollar in past 10 years and rise of gold and oil. When you money is worthless let me know how it works out for you. Until then I will invest in gold and avoid losing my savings.

[mixxalot]

You have no clue on what is really going on.

I have watched the fall of dollar in past 10 years and rise of gold and oil. When you money is worthless let me know how it works out for you. Until then I will invest in gold and avoid losing my savings.

[Author]

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