December 6, 2006 at 5:41 AM #8014
The Dollar’s Days are Numbered, at least according to thetrumpet.com
This article summarizes a list of fiat currencies that went under.
Lest you think the US is immune, just recall the saying “not worth a Continental”? Yup, even the US had a fiat currency that went bust.
Another interesting fact is that gold-based currencies kept their value for hundreds of years. In contrast, the US dollar lost 92% of its value 1913.
Does the dollar have a chance of gaining strength after our next recession, when we lower our trade deficit and start repaying our debt? Maybe there’s hope?December 6, 2006 at 5:57 AM #412124plexownerParticipant
I suspect the Amero will be introduced before the dollar completely tanks.
Some of the articles I have read imply that a currency crisis is being created intentionally so the sheeple in US/Canada/Mexico will accept the Amero as the solution to the problem.
A standard tactic in sales and government is to make the customer or citizen aware of a ‘problem’ and then present the solution to the problem
problem: currency crisis / dollar losing value
Most customers/citizens won’t realize that they have been manipulated.
The Amero will be just another fiat currency for the elites to debase – ultimately it will be added to the list of dead fiat currencies along with the US dollar.
Got silver and gold???December 10, 2006 at 2:19 PM #41424
Foreign countries are not only talking about diversifying out of US dollars, but they are actually doing it.
Why should we care? Inflation and higher taxes to pay the higher interest on the federal debt. Lots of inflation as the Federal Reserve has to print money to buy the Treasury debt that the foreigners are not buying. If the dollar does fall a lot more, big profits can be made by putting some cash now into gold, euros, swiss francs, or the British pound, and then converting the money back when needed after the dollar falls lower.
As the dollar falls, the price of oil will keep rising, and the cost of most goods will rise.
Any other comments about the falling dollar?
Oil Producers Shun Dollar
“Oil producing countries have reduced their exposure to the dollar to the lowest level in two years and shifted oil income into euros, yen and sterling, according to new data from the Bank for International Settlements. The revelation in the latest BIS quarterly review, published on Monday, confirms market speculation about a move out of dollars and could put new pressure on the ailing US currency. ”
Iran Okays Replacement of US Dollar with Euros
“In case the West pulls through with its planned economic sanctions on Iran, Tamaddon said the country would still have access to its monetary accounts based on the euro.
Iran’s minister of finance announced last week that the government had decided to replace the US dollar with the euro in its international transactions.
He said that the move was in response to the Bush administration’s hostile policies towards Iran. “December 10, 2006 at 4:35 PM #41426FormerOwnerParticipant
“The Creature from Jekyll Island: A Second Look at the Federal Reserve” is a great book that I’m almost done reading. The book retraces the history of money in western civilization and focuses on the role of the Federal Reserve.
The central point is that the US Dollar, as managed by the Federal Reserve, is destined to collapse and that the powers that be already have a world currency in mind to replace it. Perhaps the Amero would fill this role as a “regional” currency like the Euro, instead of a world currency as the book predicts.
Furthermore, and this is where it really gets interesting, there has to be a common enemy for the US citizens to fight against in order to be able to accept a lower standard of living, as a result of the currency collapse and economic upheaval. The best candidates are war and environmental destruction. We now have both. It’s not hard to see how the dots can be connected. I will post a synopsis of the book once I’m all done with it.December 11, 2006 at 11:34 AM #41451mixxalotParticipant
Investing in Gold, Euros- how?
How do I invest in euros and gold with 401k or IRA retirement plans? I predict collapse of the US dollar in less than 2 years. I want to get all my current money out of US dollar into gold, silver, sterling and Euro to avoid losing value of my investments. Maybe I should find work now in Europe!December 11, 2006 at 6:59 PM #41479
GLD is an ETF that holds gold. If you think the dollar will go down, can’t you invest in the dollar index ETF? A quick google search yielded Hedging Against a Dollar Dive. Roger Nusbaum recommends Rydex Euro Currency Trust FXE and several others (be careful with Profunds products, as outatthepeak and I had some bad experience – use piggington search for the whole story). Peter Schiff recommends the Merck Hard Currency Fund (MERKX).
Today I read that Bill Gross predicts the dollar will fall at least 5% next year, and that the U.S. housing bubble will take 1-2 years to play out.
Marketwatch reports assets of pure currency open-end mutual-funds and ETFs doubled to $1.4 billion in the past 6 months, and most of the new money comes from RETAIL, not institutional investors. I suppose everyday investors like us are getting nervous about all the media news about foreign diversification out of the US dollar.December 12, 2006 at 3:03 AM #41504
It’s “imprudent” for investors to keep their holdings in one currency, Greenspan said. – Bloomberg, Dec 11, 2006′
He expects the dollar to continue declining until the current account deficit is reduced.
Why would Greenspan talk down the dollar? I’m a total novice at this stuff, but a possibility is that he wants to reduce investments into US Treasuries (so the yield will finally go up) and mortgages (to stop all that exotic money funding home loans).December 12, 2006 at 7:51 PM #41548lewmanParticipant
I also think that longer term USD will continue to fall due to fundamental reasons so elegantly laid out by many of you.
Shorter term though I just think there’s now a lot of talks about this subject, and almost all newsletter writers I’ve seen think the dollar’s going down the drain and hence caution is required. Technically if you look at the charts (whether it’s USD index, euro, gbp, aud etc) you’ll see that the dollar’s dropped quite a lot against these currencies within a short space of time in november and these currencies are now trading at close to the top of their trading channels. Take AUD as an example, even though it’s moving up in a very nicely formed trend, it’s now at top of the channel and if it does go back to bottom of channel according to script you’re looking at a 4% correction before it resumes its up trend.
I would therefore wait a bit for the dollar to finish its rebound before adding to my foreign currency exposure.
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