How likely is Collapse of US $

[34f3f3f]

The last few months the dollar has gained a little over some currencies and been relatively stable. Keeping the dollar weak is helping a little, but it probably is not a long term option. One theory is that the so-called ‘petrodollar’ has created an ‘oil standard’, creating a link between oil prices and the dollar value. As relevant is that US manufacturing has declined, and is being replaced by financial services, a volatile industry that can cause problems for economies, as we are now seeing. I would hope that once the housing woes have blown over, and the economy has a chance to recover, problems like a weak dollar and deficits can be tackled. I don’t think the dollar will collapse unless China and Japan divest themselves of US treasury debt, which judging by the amount, is probably not going to be doing anyone any favors. But then who knows? The problem is what would you replace the dollar with? Perhaps the answer lies in the future and the export of state capitalism from the Far East.

Foreign owned companies is nothing new really. A weak dollar has seen a feeding frenzy, and access is easier in the US than some other countries, but some would argue the US has been equally aquisative in the past. Problems exist where foreign management engage in cost cutting exercises.

[34f3f3f]

The last few months the dollar has gained a little over some currencies and been relatively stable. Keeping the dollar weak is helping a little, but it probably is not a long term option. One theory is that the so-called ‘petrodollar’ has created an ‘oil standard’, creating a link between oil prices and the dollar value. As relevant is that US manufacturing has declined, and is being replaced by financial services, a volatile industry that can cause problems for economies, as we are now seeing. I would hope that once the housing woes have blown over, and the economy has a chance to recover, problems like a weak dollar and deficits can be tackled. I don’t think the dollar will collapse unless China and Japan divest themselves of US treasury debt, which judging by the amount, is probably not going to be doing anyone any favors. But then who knows? The problem is what would you replace the dollar with? Perhaps the answer lies in the future and the export of state capitalism from the Far East.

Foreign owned companies is nothing new really. A weak dollar has seen a feeding frenzy, and access is easier in the US than some other countries, but some would argue the US has been equally aquisative in the past. Problems exist where foreign management engage in cost cutting exercises.

[bsrsharma]

US faces global funding crisis, warns Merrill Lynch

The US Treasury may have just days to act before foreign patience snaps, writes Ambrose Evans-Pritchard

Merrill Lynch has warned that the United States could face a foreign “financing crisis” within months as the full consequences of the Fannie Mae and Freddie Mac mortgage debacle spread through the world.

The country depends on Asian, Russian and Middle Eastern investors to fund much of its $700bn (£350bn) current account deficit, leaving it far more vulnerable to a collapse of confidence than Japan in the early 1990s after the Nikkei bubble burst. Britain and other Anglo-Saxon deficit states could face a similar retreat by foreign investors….

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/07/16/ccusdebt116.xml

[bsrsharma]

US faces global funding crisis, warns Merrill Lynch

The US Treasury may have just days to act before foreign patience snaps, writes Ambrose Evans-Pritchard

Merrill Lynch has warned that the United States could face a foreign “financing crisis” within months as the full consequences of the Fannie Mae and Freddie Mac mortgage debacle spread through the world.

The country depends on Asian, Russian and Middle Eastern investors to fund much of its $700bn (£350bn) current account deficit, leaving it far more vulnerable to a collapse of confidence than Japan in the early 1990s after the Nikkei bubble burst. Britain and other Anglo-Saxon deficit states could face a similar retreat by foreign investors….

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/07/16/ccusdebt116.xml

[bsrsharma]

US faces global funding crisis, warns Merrill Lynch

The US Treasury may have just days to act before foreign patience snaps, writes Ambrose Evans-Pritchard

Merrill Lynch has warned that the United States could face a foreign “financing crisis” within months as the full consequences of the Fannie Mae and Freddie Mac mortgage debacle spread through the world.

The country depends on Asian, Russian and Middle Eastern investors to fund much of its $700bn (£350bn) current account deficit, leaving it far more vulnerable to a collapse of confidence than Japan in the early 1990s after the Nikkei bubble burst. Britain and other Anglo-Saxon deficit states could face a similar retreat by foreign investors….

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/07/16/ccusdebt116.xml

[bsrsharma]

US faces global funding crisis, warns Merrill Lynch

The US Treasury may have just days to act before foreign patience snaps, writes Ambrose Evans-Pritchard

Merrill Lynch has warned that the United States could face a foreign “financing crisis” within months as the full consequences of the Fannie Mae and Freddie Mac mortgage debacle spread through the world.

The country depends on Asian, Russian and Middle Eastern investors to fund much of its $700bn (£350bn) current account deficit, leaving it far more vulnerable to a collapse of confidence than Japan in the early 1990s after the Nikkei bubble burst. Britain and other Anglo-Saxon deficit states could face a similar retreat by foreign investors….

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/07/16/ccusdebt116.xml

[bsrsharma]

US faces global funding crisis, warns Merrill Lynch

The US Treasury may have just days to act before foreign patience snaps, writes Ambrose Evans-Pritchard

Merrill Lynch has warned that the United States could face a foreign “financing crisis” within months as the full consequences of the Fannie Mae and Freddie Mac mortgage debacle spread through the world.

The country depends on Asian, Russian and Middle Eastern investors to fund much of its $700bn (£350bn) current account deficit, leaving it far more vulnerable to a collapse of confidence than Japan in the early 1990s after the Nikkei bubble burst. Britain and other Anglo-Saxon deficit states could face a similar retreat by foreign investors….

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/07/16/ccusdebt116.xml

[kewp]

Does anyone reading this have a reason that this would not happen? I would rather believe it cannot happen, and I would welcome any holes in this idea that the USD will collapse.

Natural resources. The US is huge player in the global commodities market. A weaker dollar only makes us more competitive.

[kewp]

Does anyone reading this have a reason that this would not happen? I would rather believe it cannot happen, and I would welcome any holes in this idea that the USD will collapse.

Natural resources. The US is huge player in the global commodities market. A weaker dollar only makes us more competitive.

[kewp]

Does anyone reading this have a reason that this would not happen? I would rather believe it cannot happen, and I would welcome any holes in this idea that the USD will collapse.

Natural resources. The US is huge player in the global commodities market. A weaker dollar only makes us more competitive.

[kewp]

Does anyone reading this have a reason that this would not happen? I would rather believe it cannot happen, and I would welcome any holes in this idea that the USD will collapse.

Natural resources. The US is huge player in the global commodities market. A weaker dollar only makes us more competitive.

[kewp]

Does anyone reading this have a reason that this would not happen? I would rather believe it cannot happen, and I would welcome any holes in this idea that the USD will collapse.

Natural resources. The US is huge player in the global commodities market. A weaker dollar only makes us more competitive.

[partypup]

“Does anyone reading this have a reason that this would not happen? I would rather believe it cannot happen, and I would welcome any holes in this idea that the USD will collapse.”

We all need to brace ourselves for the imminent implosion of the U.S. dollar. Period. End of story. I have been actively preparing for the past 2 years.

My broker — who worked for Morgan Stanley until they fired him in 2006 for steering his clients out of stocks and into precious metals, oil and natural resources — laid out with stunning accuracy 18 mos ago the EXACT sequence of events that we are witnessing now. It was all too horrific to believe at the time, and I resisted for a bit until the first of his predictions came true: he warned that the subprime crisis would erupt in mid-2007. He said that lenders would simply start “shutting off the money.” I didn’t fully appreciate what he meant at the time. Now I do. He begged me to sell my house and my duplex. I sold in Nov 2006 and March 2007. 2 mos later, the hell began. The house I sold is now appraised on Zillow for $250K less than I sold it for 1 year ago. The flipper who bought my duplex couldn’t sell it after 6 mos and gave up.

His other predictions:

He got me into gold at $550/oz and silver at $11/0z, and he told me gold would hit $1000 and silver would hit $20 within two years. After that? His prediction is that they would go “to the moon”, thousands of dollars per oz for gold and hundreds for silver.

He told me last spring that we would start seeing mornings when we wake up and routinely see the Dow diving 200+ points in a matter of hours.

He told me that banks would fail — a few at first — and then massive closures nationwide that would soon overwhelm FDIC.

He told me that ATM cards and credit cards would be summarily cut off as banks failed, so keep plenty of “interim” cash on hand. This will be useful until people finally begin to realize that the dollar is dead and ain’t coming back. Then metals, food and other “hard” items would become the REAL money.

He told me last spring that Freddie and Fannie were already insolvent and would be going down — HARD.

He told me that the country would experience hyperinflation, food scarcity and gas rationing (when the dollar finally dies, good luck getting gas into trucks to get food to stores, or getting any imported goods into this country, for that matter) that would lead to massive civil unrest and would eventually “require” the imposition of martial law — hence the various extensions of the Patriot Act and the sundry other Constitutional incursions witnessed for the past 7 years. It has nothing to do with terrorism and everything to do with an impending collapse. The looming day of reckoning has been anticipated by all but the oblivious American sheeple. He begged me to leave L.A. and set up base in a smaller community. He, himself, liquidated, sold everything he owned in Newport Beach and moved to Nashville.

I trust this man because he has steered me right so far and has been so eerily accurate. He has also increased my portfolio by 160% as the global markets have imploded. The future he paints is a grim one, indeed. As depressing as all of this may sound, imagine how depressing it would be to be blindsided by the inevitable. Forewarned is forearmed.

[partypup]

“Does anyone reading this have a reason that this would not happen? I would rather believe it cannot happen, and I would welcome any holes in this idea that the USD will collapse.”

We all need to brace ourselves for the imminent implosion of the U.S. dollar. Period. End of story. I have been actively preparing for the past 2 years.

My broker — who worked for Morgan Stanley until they fired him in 2006 for steering his clients out of stocks and into precious metals, oil and natural resources — laid out with stunning accuracy 18 mos ago the EXACT sequence of events that we are witnessing now. It was all too horrific to believe at the time, and I resisted for a bit until the first of his predictions came true: he warned that the subprime crisis would erupt in mid-2007. He said that lenders would simply start “shutting off the money.” I didn’t fully appreciate what he meant at the time. Now I do. He begged me to sell my house and my duplex. I sold in Nov 2006 and March 2007. 2 mos later, the hell began. The house I sold is now appraised on Zillow for $250K less than I sold it for 1 year ago. The flipper who bought my duplex couldn’t sell it after 6 mos and gave up.

His other predictions:

He got me into gold at $550/oz and silver at $11/0z, and he told me gold would hit $1000 and silver would hit $20 within two years. After that? His prediction is that they would go “to the moon”, thousands of dollars per oz for gold and hundreds for silver.

He told me last spring that we would start seeing mornings when we wake up and routinely see the Dow diving 200+ points in a matter of hours.

He told me that banks would fail — a few at first — and then massive closures nationwide that would soon overwhelm FDIC.

He told me that ATM cards and credit cards would be summarily cut off as banks failed, so keep plenty of “interim” cash on hand. This will be useful until people finally begin to realize that the dollar is dead and ain’t coming back. Then metals, food and other “hard” items would become the REAL money.

He told me last spring that Freddie and Fannie were already insolvent and would be going down — HARD.

He told me that the country would experience hyperinflation, food scarcity and gas rationing (when the dollar finally dies, good luck getting gas into trucks to get food to stores, or getting any imported goods into this country, for that matter) that would lead to massive civil unrest and would eventually “require” the imposition of martial law — hence the various extensions of the Patriot Act and the sundry other Constitutional incursions witnessed for the past 7 years. It has nothing to do with terrorism and everything to do with an impending collapse. The looming day of reckoning has been anticipated by all but the oblivious American sheeple. He begged me to leave L.A. and set up base in a smaller community. He, himself, liquidated, sold everything he owned in Newport Beach and moved to Nashville.

I trust this man because he has steered me right so far and has been so eerily accurate. He has also increased my portfolio by 160% as the global markets have imploded. The future he paints is a grim one, indeed. As depressing as all of this may sound, imagine how depressing it would be to be blindsided by the inevitable. Forewarned is forearmed.

[partypup]

“Does anyone reading this have a reason that this would not happen? I would rather believe it cannot happen, and I would welcome any holes in this idea that the USD will collapse.”

We all need to brace ourselves for the imminent implosion of the U.S. dollar. Period. End of story. I have been actively preparing for the past 2 years.

My broker — who worked for Morgan Stanley until they fired him in 2006 for steering his clients out of stocks and into precious metals, oil and natural resources — laid out with stunning accuracy 18 mos ago the EXACT sequence of events that we are witnessing now. It was all too horrific to believe at the time, and I resisted for a bit until the first of his predictions came true: he warned that the subprime crisis would erupt in mid-2007. He said that lenders would simply start “shutting off the money.” I didn’t fully appreciate what he meant at the time. Now I do. He begged me to sell my house and my duplex. I sold in Nov 2006 and March 2007. 2 mos later, the hell began. The house I sold is now appraised on Zillow for $250K less than I sold it for 1 year ago. The flipper who bought my duplex couldn’t sell it after 6 mos and gave up.

His other predictions:

He got me into gold at $550/oz and silver at $11/0z, and he told me gold would hit $1000 and silver would hit $20 within two years. After that? His prediction is that they would go “to the moon”, thousands of dollars per oz for gold and hundreds for silver.

He told me last spring that we would start seeing mornings when we wake up and routinely see the Dow diving 200+ points in a matter of hours.

He told me that banks would fail — a few at first — and then massive closures nationwide that would soon overwhelm FDIC.

He told me that ATM cards and credit cards would be summarily cut off as banks failed, so keep plenty of “interim” cash on hand. This will be useful until people finally begin to realize that the dollar is dead and ain’t coming back. Then metals, food and other “hard” items would become the REAL money.

He told me last spring that Freddie and Fannie were already insolvent and would be going down — HARD.

He told me that the country would experience hyperinflation, food scarcity and gas rationing (when the dollar finally dies, good luck getting gas into trucks to get food to stores, or getting any imported goods into this country, for that matter) that would lead to massive civil unrest and would eventually “require” the imposition of martial law — hence the various extensions of the Patriot Act and the sundry other Constitutional incursions witnessed for the past 7 years. It has nothing to do with terrorism and everything to do with an impending collapse. The looming day of reckoning has been anticipated by all but the oblivious American sheeple. He begged me to leave L.A. and set up base in a smaller community. He, himself, liquidated, sold everything he owned in Newport Beach and moved to Nashville.

I trust this man because he has steered me right so far and has been so eerily accurate. He has also increased my portfolio by 160% as the global markets have imploded. The future he paints is a grim one, indeed. As depressing as all of this may sound, imagine how depressing it would be to be blindsided by the inevitable. Forewarned is forearmed.

[Author]

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