Day of reckoning looms for the U.S. dollar

[Allan from Fallbrook]

[quote=Veritas]Allan,

You must be loading your own between the scarcity and the high cost of ammo.[/quote]

Yup, I dusted off the old Dillon progressive and got back into “rolling my own”.

It’s interesting, too, because the gubment has been destroying old brass, so reloading certain types of ammo, specifically 5.56mm, has gotten more difficult.

Powder, bullets and primers are still readily available, although certain distributors are limiting quantities and certain calibers (esp. the newer stuff) are a little problematic.

The way people are buying guns and ammo you’d think the end was right around the corner.

[partypup]

[quote=4plexowner]”but Mr Bernanke will put a stop to that”

by this comment I assume you mean that he will buy US Treasuries all along the curve in order to suppress both short and long-term interest rates – how else can he stop rates from rising?

in order to buy US Treasuries the Fed is already engaging in “quantitative easing” (which is just the latest mind-fuck for printing fiat currency as fast as possible) and you are proposing that they will increase these efforts

“Only in extremis will it proceed to the next step, where these exporters feel the future value of the dollar is so unreliable that they will not accept ANY AMOUNT of future dollars in exchange for a real good today.”

so how much “quantitative easing” can the Fed perform before we reach the “extremis” state?[/quote]

Bernanke has completely lost control. The Fed is now at the mercy of the purchasers of our debt. And he won’t be able to restrain interest rates for long. So I believe we will be slipping into the extremis state within the next twelve (12) months, if not sooner. At that point I would expect exporters to begin requiring many more dollars for products sold to the U.S., and in the case of hard assets with higher *real* value (such as oil), dollars may not be accepted at all, and this is already the case with at least one OPEC country (Iran) that has recently decided that the greenback — no matter how many they receive — is simply too worthless to purchase their oil. Venezuela will probably follow suit, as Iran is putting pressure on other OPEC countries to ditch the dollar altogether. I wouldn’t expect this to happen overnight, but when the dollar collapse begins in earnest I wouldn’t count on being able to find $2.59 gas. Think more along the lines of $5.

And this doesn’t help our prospects:

“Obama: ‘We’re out of money'”

I wish he would have realized that about $11 trillion ago.

http://www.americanthinker.com/blog/2009/05/obama_were_out_of_money.html

[partypup]

[quote=4plexowner]”but Mr Bernanke will put a stop to that”

by this comment I assume you mean that he will buy US Treasuries all along the curve in order to suppress both short and long-term interest rates – how else can he stop rates from rising?

in order to buy US Treasuries the Fed is already engaging in “quantitative easing” (which is just the latest mind-fuck for printing fiat currency as fast as possible) and you are proposing that they will increase these efforts

“Only in extremis will it proceed to the next step, where these exporters feel the future value of the dollar is so unreliable that they will not accept ANY AMOUNT of future dollars in exchange for a real good today.”

so how much “quantitative easing” can the Fed perform before we reach the “extremis” state?[/quote]

Bernanke has completely lost control. The Fed is now at the mercy of the purchasers of our debt. And he won’t be able to restrain interest rates for long. So I believe we will be slipping into the extremis state within the next twelve (12) months, if not sooner. At that point I would expect exporters to begin requiring many more dollars for products sold to the U.S., and in the case of hard assets with higher *real* value (such as oil), dollars may not be accepted at all, and this is already the case with at least one OPEC country (Iran) that has recently decided that the greenback — no matter how many they receive — is simply too worthless to purchase their oil. Venezuela will probably follow suit, as Iran is putting pressure on other OPEC countries to ditch the dollar altogether. I wouldn’t expect this to happen overnight, but when the dollar collapse begins in earnest I wouldn’t count on being able to find $2.59 gas. Think more along the lines of $5.

And this doesn’t help our prospects:

“Obama: ‘We’re out of money'”

I wish he would have realized that about $11 trillion ago.

http://www.americanthinker.com/blog/2009/05/obama_were_out_of_money.html

[partypup]

[quote=4plexowner]”but Mr Bernanke will put a stop to that”

by this comment I assume you mean that he will buy US Treasuries all along the curve in order to suppress both short and long-term interest rates – how else can he stop rates from rising?

in order to buy US Treasuries the Fed is already engaging in “quantitative easing” (which is just the latest mind-fuck for printing fiat currency as fast as possible) and you are proposing that they will increase these efforts

“Only in extremis will it proceed to the next step, where these exporters feel the future value of the dollar is so unreliable that they will not accept ANY AMOUNT of future dollars in exchange for a real good today.”

so how much “quantitative easing” can the Fed perform before we reach the “extremis” state?[/quote]

Bernanke has completely lost control. The Fed is now at the mercy of the purchasers of our debt. And he won’t be able to restrain interest rates for long. So I believe we will be slipping into the extremis state within the next twelve (12) months, if not sooner. At that point I would expect exporters to begin requiring many more dollars for products sold to the U.S., and in the case of hard assets with higher *real* value (such as oil), dollars may not be accepted at all, and this is already the case with at least one OPEC country (Iran) that has recently decided that the greenback — no matter how many they receive — is simply too worthless to purchase their oil. Venezuela will probably follow suit, as Iran is putting pressure on other OPEC countries to ditch the dollar altogether. I wouldn’t expect this to happen overnight, but when the dollar collapse begins in earnest I wouldn’t count on being able to find $2.59 gas. Think more along the lines of $5.

And this doesn’t help our prospects:

“Obama: ‘We’re out of money'”

I wish he would have realized that about $11 trillion ago.

http://www.americanthinker.com/blog/2009/05/obama_were_out_of_money.html

[partypup]

[quote=4plexowner]”but Mr Bernanke will put a stop to that”

by this comment I assume you mean that he will buy US Treasuries all along the curve in order to suppress both short and long-term interest rates – how else can he stop rates from rising?

in order to buy US Treasuries the Fed is already engaging in “quantitative easing” (which is just the latest mind-fuck for printing fiat currency as fast as possible) and you are proposing that they will increase these efforts

“Only in extremis will it proceed to the next step, where these exporters feel the future value of the dollar is so unreliable that they will not accept ANY AMOUNT of future dollars in exchange for a real good today.”

so how much “quantitative easing” can the Fed perform before we reach the “extremis” state?[/quote]

Bernanke has completely lost control. The Fed is now at the mercy of the purchasers of our debt. And he won’t be able to restrain interest rates for long. So I believe we will be slipping into the extremis state within the next twelve (12) months, if not sooner. At that point I would expect exporters to begin requiring many more dollars for products sold to the U.S., and in the case of hard assets with higher *real* value (such as oil), dollars may not be accepted at all, and this is already the case with at least one OPEC country (Iran) that has recently decided that the greenback — no matter how many they receive — is simply too worthless to purchase their oil. Venezuela will probably follow suit, as Iran is putting pressure on other OPEC countries to ditch the dollar altogether. I wouldn’t expect this to happen overnight, but when the dollar collapse begins in earnest I wouldn’t count on being able to find $2.59 gas. Think more along the lines of $5.

And this doesn’t help our prospects:

“Obama: ‘We’re out of money'”

I wish he would have realized that about $11 trillion ago.

http://www.americanthinker.com/blog/2009/05/obama_were_out_of_money.html

[partypup]

[quote=4plexowner]”but Mr Bernanke will put a stop to that”

by this comment I assume you mean that he will buy US Treasuries all along the curve in order to suppress both short and long-term interest rates – how else can he stop rates from rising?

in order to buy US Treasuries the Fed is already engaging in “quantitative easing” (which is just the latest mind-fuck for printing fiat currency as fast as possible) and you are proposing that they will increase these efforts

“Only in extremis will it proceed to the next step, where these exporters feel the future value of the dollar is so unreliable that they will not accept ANY AMOUNT of future dollars in exchange for a real good today.”

so how much “quantitative easing” can the Fed perform before we reach the “extremis” state?[/quote]

Bernanke has completely lost control. The Fed is now at the mercy of the purchasers of our debt. And he won’t be able to restrain interest rates for long. So I believe we will be slipping into the extremis state within the next twelve (12) months, if not sooner. At that point I would expect exporters to begin requiring many more dollars for products sold to the U.S., and in the case of hard assets with higher *real* value (such as oil), dollars may not be accepted at all, and this is already the case with at least one OPEC country (Iran) that has recently decided that the greenback — no matter how many they receive — is simply too worthless to purchase their oil. Venezuela will probably follow suit, as Iran is putting pressure on other OPEC countries to ditch the dollar altogether. I wouldn’t expect this to happen overnight, but when the dollar collapse begins in earnest I wouldn’t count on being able to find $2.59 gas. Think more along the lines of $5.

And this doesn’t help our prospects:

“Obama: ‘We’re out of money'”

I wish he would have realized that about $11 trillion ago.

http://www.americanthinker.com/blog/2009/05/obama_were_out_of_money.html

[4plexowner]

“extremis” coming closer?

China warns Federal Reserve over ‘printing money’

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5379285/China-warns-Federal-Reserve-over-printing-money.html

~

I listed our liabilities on the low side when I said $60-70 trillion – but hey, what’s a few trillion these days?

from the article above:

“We at the Dallas Fed believe the total is over $99 trillion,” he said in February.

[4plexowner]

“extremis” coming closer?

China warns Federal Reserve over ‘printing money’

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5379285/China-warns-Federal-Reserve-over-printing-money.html

~

I listed our liabilities on the low side when I said $60-70 trillion – but hey, what’s a few trillion these days?

from the article above:

“We at the Dallas Fed believe the total is over $99 trillion,” he said in February.

[4plexowner]

“extremis” coming closer?

China warns Federal Reserve over ‘printing money’

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5379285/China-warns-Federal-Reserve-over-printing-money.html

~

I listed our liabilities on the low side when I said $60-70 trillion – but hey, what’s a few trillion these days?

from the article above:

“We at the Dallas Fed believe the total is over $99 trillion,” he said in February.

[4plexowner]

“extremis” coming closer?

China warns Federal Reserve over ‘printing money’

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5379285/China-warns-Federal-Reserve-over-printing-money.html

~

I listed our liabilities on the low side when I said $60-70 trillion – but hey, what’s a few trillion these days?

from the article above:

“We at the Dallas Fed believe the total is over $99 trillion,” he said in February.

[4plexowner]

“extremis” coming closer?

China warns Federal Reserve over ‘printing money’

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5379285/China-warns-Federal-Reserve-over-printing-money.html

~

I listed our liabilities on the low side when I said $60-70 trillion – but hey, what’s a few trillion these days?

from the article above:

“We at the Dallas Fed believe the total is over $99 trillion,” he said in February.

[patientrenter]

“Bernanke has completely lost control. The Fed is now at the mercy of the purchasers of our debt. And he won’t be able to restrain interest rates for long. So I believe we will be slipping into the extremis state within the next twelve (12) months, if not sooner. At that point I would expect exporters to begin requiring many more dollars for products sold to the U.S., and in the case of hard assets with higher *real* value (such as oil), dollars may not be accepted at all, and this is already the case with at least one OPEC country (Iran) that has recently decided that the greenback — no matter how many they receive — is simply too worthless to purchase their oil. Venezuela will probably follow suit, as Iran is putting pressure on other OPEC countries to ditch the dollar altogether. I wouldn’t expect this to happen overnight, but when the dollar collapse begins in earnest I wouldn’t count on being able to find $2.59 gas. Think more along the lines of $5.”

Groan.. I give up.

partypup, I assume you make these posts to entertain yourself. But if you are trying to figure out what’s most likely to happen, then your comment about the OPEC countries not taking any number of dollars in return for giving us their oil doesn’t fit with your conclusion that oil will be at $5. If people accept $5 in return for a gallon of gasoline, then that means oil exporters will accept dollars too. They may just want more of them. There’s a difference between a 30% or even 50% devaluation of a currency and its complete collapse. One is Bladerunner, the other is Mad Max.

[patientrenter]

“Bernanke has completely lost control. The Fed is now at the mercy of the purchasers of our debt. And he won’t be able to restrain interest rates for long. So I believe we will be slipping into the extremis state within the next twelve (12) months, if not sooner. At that point I would expect exporters to begin requiring many more dollars for products sold to the U.S., and in the case of hard assets with higher *real* value (such as oil), dollars may not be accepted at all, and this is already the case with at least one OPEC country (Iran) that has recently decided that the greenback — no matter how many they receive — is simply too worthless to purchase their oil. Venezuela will probably follow suit, as Iran is putting pressure on other OPEC countries to ditch the dollar altogether. I wouldn’t expect this to happen overnight, but when the dollar collapse begins in earnest I wouldn’t count on being able to find $2.59 gas. Think more along the lines of $5.”

Groan.. I give up.

partypup, I assume you make these posts to entertain yourself. But if you are trying to figure out what’s most likely to happen, then your comment about the OPEC countries not taking any number of dollars in return for giving us their oil doesn’t fit with your conclusion that oil will be at $5. If people accept $5 in return for a gallon of gasoline, then that means oil exporters will accept dollars too. They may just want more of them. There’s a difference between a 30% or even 50% devaluation of a currency and its complete collapse. One is Bladerunner, the other is Mad Max.

[patientrenter]

“Bernanke has completely lost control. The Fed is now at the mercy of the purchasers of our debt. And he won’t be able to restrain interest rates for long. So I believe we will be slipping into the extremis state within the next twelve (12) months, if not sooner. At that point I would expect exporters to begin requiring many more dollars for products sold to the U.S., and in the case of hard assets with higher *real* value (such as oil), dollars may not be accepted at all, and this is already the case with at least one OPEC country (Iran) that has recently decided that the greenback — no matter how many they receive — is simply too worthless to purchase their oil. Venezuela will probably follow suit, as Iran is putting pressure on other OPEC countries to ditch the dollar altogether. I wouldn’t expect this to happen overnight, but when the dollar collapse begins in earnest I wouldn’t count on being able to find $2.59 gas. Think more along the lines of $5.”

Groan.. I give up.

partypup, I assume you make these posts to entertain yourself. But if you are trying to figure out what’s most likely to happen, then your comment about the OPEC countries not taking any number of dollars in return for giving us their oil doesn’t fit with your conclusion that oil will be at $5. If people accept $5 in return for a gallon of gasoline, then that means oil exporters will accept dollars too. They may just want more of them. There’s a difference between a 30% or even 50% devaluation of a currency and its complete collapse. One is Bladerunner, the other is Mad Max.

[patientrenter]

“Bernanke has completely lost control. The Fed is now at the mercy of the purchasers of our debt. And he won’t be able to restrain interest rates for long. So I believe we will be slipping into the extremis state within the next twelve (12) months, if not sooner. At that point I would expect exporters to begin requiring many more dollars for products sold to the U.S., and in the case of hard assets with higher *real* value (such as oil), dollars may not be accepted at all, and this is already the case with at least one OPEC country (Iran) that has recently decided that the greenback — no matter how many they receive — is simply too worthless to purchase their oil. Venezuela will probably follow suit, as Iran is putting pressure on other OPEC countries to ditch the dollar altogether. I wouldn’t expect this to happen overnight, but when the dollar collapse begins in earnest I wouldn’t count on being able to find $2.59 gas. Think more along the lines of $5.”

Groan.. I give up.

partypup, I assume you make these posts to entertain yourself. But if you are trying to figure out what’s most likely to happen, then your comment about the OPEC countries not taking any number of dollars in return for giving us their oil doesn’t fit with your conclusion that oil will be at $5. If people accept $5 in return for a gallon of gasoline, then that means oil exporters will accept dollars too. They may just want more of them. There’s a difference between a 30% or even 50% devaluation of a currency and its complete collapse. One is Bladerunner, the other is Mad Max.

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