How to protect against hyperinflation and destruction of the US dollar

[mixxalot]

With the bailout passing and Fed slashing interest rates and Helicopter Ben printing money like no tomorrow, I am afraid that we will see a nasty period of hyperinflation unless a miracle takes place.

I don’t trust Wall Street as these insiders are behind the bailout so gold coin looks to be the best bet.

But question is this: how to cash in once the dollar is worthless if one has a bunch of gold coin?

[stockstradr]

I’m not understanding why some people on here view liquidity of holding gold as a problem?

What am I missing here?

Take my E*TRADE account, which inludes brokerage, savings, checking, retirement accounts.

I move say $10,000 from savings into brokerage. I buy $10K in gold via the ETF (Symbol: “GLD”). Wow, that took a total of sixty seconds.

Three years later. Wow, those same gold ETF shares are worth $30,000.

Oh, I need some grocery money. OK fine.

Sell a few shares of “GLD” then transfer proceeds into checking. All online. Wow, that took another sixty seconds.

Ten minutes later at the grocery store, whip out my E*TRADE ATM card and pay for groceries with dollars that were gold only twenty minutes ago.

I don’t see the problem!

And please don’t give me that blather about “Oh, I don’t trust the gold ETF, blah blah blah. They’ll go bankrupt!”

Hello. They have a gold warehouse. When you buy their ETF, they go buy gold essentially matching their net monetary inflows/outflows. They have over 700 metric tons of gold in a warehouse matching their ETF deposits.

OR you could buy physical gold. Now you gotta Fed Ex that stuff back to your broker, such as KitCo in order to redeem it into dollars.

But again, you are causing yourself inconvenience because of trust issues. Why not just let Kitco hold it for you?

[stockstradr]

I’m not understanding why some people on here view liquidity of holding gold as a problem?

What am I missing here?

Take my E*TRADE account, which inludes brokerage, savings, checking, retirement accounts.

I move say $10,000 from savings into brokerage. I buy $10K in gold via the ETF (Symbol: “GLD”). Wow, that took a total of sixty seconds.

Three years later. Wow, those same gold ETF shares are worth $30,000.

Oh, I need some grocery money. OK fine.

Sell a few shares of “GLD” then transfer proceeds into checking. All online. Wow, that took another sixty seconds.

Ten minutes later at the grocery store, whip out my E*TRADE ATM card and pay for groceries with dollars that were gold only twenty minutes ago.

I don’t see the problem!

And please don’t give me that blather about “Oh, I don’t trust the gold ETF, blah blah blah. They’ll go bankrupt!”

Hello. They have a gold warehouse. When you buy their ETF, they go buy gold essentially matching their net monetary inflows/outflows. They have over 700 metric tons of gold in a warehouse matching their ETF deposits.

OR you could buy physical gold. Now you gotta Fed Ex that stuff back to your broker, such as KitCo in order to redeem it into dollars.

But again, you are causing yourself inconvenience because of trust issues. Why not just let Kitco hold it for you?

[stockstradr]

I’m not understanding why some people on here view liquidity of holding gold as a problem?

What am I missing here?

Take my E*TRADE account, which inludes brokerage, savings, checking, retirement accounts.

I move say $10,000 from savings into brokerage. I buy $10K in gold via the ETF (Symbol: “GLD”). Wow, that took a total of sixty seconds.

Three years later. Wow, those same gold ETF shares are worth $30,000.

Oh, I need some grocery money. OK fine.

Sell a few shares of “GLD” then transfer proceeds into checking. All online. Wow, that took another sixty seconds.

Ten minutes later at the grocery store, whip out my E*TRADE ATM card and pay for groceries with dollars that were gold only twenty minutes ago.

I don’t see the problem!

And please don’t give me that blather about “Oh, I don’t trust the gold ETF, blah blah blah. They’ll go bankrupt!”

Hello. They have a gold warehouse. When you buy their ETF, they go buy gold essentially matching their net monetary inflows/outflows. They have over 700 metric tons of gold in a warehouse matching their ETF deposits.

OR you could buy physical gold. Now you gotta Fed Ex that stuff back to your broker, such as KitCo in order to redeem it into dollars.

But again, you are causing yourself inconvenience because of trust issues. Why not just let Kitco hold it for you?

[stockstradr]

I’m not understanding why some people on here view liquidity of holding gold as a problem?

What am I missing here?

Take my E*TRADE account, which inludes brokerage, savings, checking, retirement accounts.

I move say $10,000 from savings into brokerage. I buy $10K in gold via the ETF (Symbol: “GLD”). Wow, that took a total of sixty seconds.

Three years later. Wow, those same gold ETF shares are worth $30,000.

Oh, I need some grocery money. OK fine.

Sell a few shares of “GLD” then transfer proceeds into checking. All online. Wow, that took another sixty seconds.

Ten minutes later at the grocery store, whip out my E*TRADE ATM card and pay for groceries with dollars that were gold only twenty minutes ago.

I don’t see the problem!

And please don’t give me that blather about “Oh, I don’t trust the gold ETF, blah blah blah. They’ll go bankrupt!”

Hello. They have a gold warehouse. When you buy their ETF, they go buy gold essentially matching their net monetary inflows/outflows. They have over 700 metric tons of gold in a warehouse matching their ETF deposits.

OR you could buy physical gold. Now you gotta Fed Ex that stuff back to your broker, such as KitCo in order to redeem it into dollars.

But again, you are causing yourself inconvenience because of trust issues. Why not just let Kitco hold it for you?

[stockstradr]

I’m not understanding why some people on here view liquidity of holding gold as a problem?

What am I missing here?

Take my E*TRADE account, which inludes brokerage, savings, checking, retirement accounts.

I move say $10,000 from savings into brokerage. I buy $10K in gold via the ETF (Symbol: “GLD”). Wow, that took a total of sixty seconds.

Three years later. Wow, those same gold ETF shares are worth $30,000.

Oh, I need some grocery money. OK fine.

Sell a few shares of “GLD” then transfer proceeds into checking. All online. Wow, that took another sixty seconds.

Ten minutes later at the grocery store, whip out my E*TRADE ATM card and pay for groceries with dollars that were gold only twenty minutes ago.

I don’t see the problem!

And please don’t give me that blather about “Oh, I don’t trust the gold ETF, blah blah blah. They’ll go bankrupt!”

Hello. They have a gold warehouse. When you buy their ETF, they go buy gold essentially matching their net monetary inflows/outflows. They have over 700 metric tons of gold in a warehouse matching their ETF deposits.

OR you could buy physical gold. Now you gotta Fed Ex that stuff back to your broker, such as KitCo in order to redeem it into dollars.

But again, you are causing yourself inconvenience because of trust issues. Why not just let Kitco hold it for you?

[peterb]

Dont be so quick to write-off the US$. It’s been hammered for 4 years. It’s a little payback time. If history has anything to do with it, the US$ should stay as a superior currency for a year or two. Cash in a crash.
There’s about $50T or more in debt insturments out there that are being destroyed verses the $2T being created. Kinda like trying to kick start a 747. We got deflation now. There’s never been inflation during a housing down cycle like this. Banks are not lending, people are not borrowing. And debt is being destroyed. Velocity of money is crawling.
How anyone gets inflation outta this is beyond me.

And gold could be topping right now. It costs about $500 and ounce to get it. At $900, that’s a pretty good premium. If it goes over $1000, it’s in bubble territory. It’s really good as an accurate indictor of the currencies purchasing power. So it’s got that going for it. But if it’s measured in US$, it could be stagnating for a while. IMO

[peterb]

Dont be so quick to write-off the US$. It’s been hammered for 4 years. It’s a little payback time. If history has anything to do with it, the US$ should stay as a superior currency for a year or two. Cash in a crash.
There’s about $50T or more in debt insturments out there that are being destroyed verses the $2T being created. Kinda like trying to kick start a 747. We got deflation now. There’s never been inflation during a housing down cycle like this. Banks are not lending, people are not borrowing. And debt is being destroyed. Velocity of money is crawling.
How anyone gets inflation outta this is beyond me.

And gold could be topping right now. It costs about $500 and ounce to get it. At $900, that’s a pretty good premium. If it goes over $1000, it’s in bubble territory. It’s really good as an accurate indictor of the currencies purchasing power. So it’s got that going for it. But if it’s measured in US$, it could be stagnating for a while. IMO

[peterb]

Dont be so quick to write-off the US$. It’s been hammered for 4 years. It’s a little payback time. If history has anything to do with it, the US$ should stay as a superior currency for a year or two. Cash in a crash.
There’s about $50T or more in debt insturments out there that are being destroyed verses the $2T being created. Kinda like trying to kick start a 747. We got deflation now. There’s never been inflation during a housing down cycle like this. Banks are not lending, people are not borrowing. And debt is being destroyed. Velocity of money is crawling.
How anyone gets inflation outta this is beyond me.

And gold could be topping right now. It costs about $500 and ounce to get it. At $900, that’s a pretty good premium. If it goes over $1000, it’s in bubble territory. It’s really good as an accurate indictor of the currencies purchasing power. So it’s got that going for it. But if it’s measured in US$, it could be stagnating for a while. IMO

[peterb]

Dont be so quick to write-off the US$. It’s been hammered for 4 years. It’s a little payback time. If history has anything to do with it, the US$ should stay as a superior currency for a year or two. Cash in a crash.
There’s about $50T or more in debt insturments out there that are being destroyed verses the $2T being created. Kinda like trying to kick start a 747. We got deflation now. There’s never been inflation during a housing down cycle like this. Banks are not lending, people are not borrowing. And debt is being destroyed. Velocity of money is crawling.
How anyone gets inflation outta this is beyond me.

And gold could be topping right now. It costs about $500 and ounce to get it. At $900, that’s a pretty good premium. If it goes over $1000, it’s in bubble territory. It’s really good as an accurate indictor of the currencies purchasing power. So it’s got that going for it. But if it’s measured in US$, it could be stagnating for a while. IMO

[peterb]

Dont be so quick to write-off the US$. It’s been hammered for 4 years. It’s a little payback time. If history has anything to do with it, the US$ should stay as a superior currency for a year or two. Cash in a crash.
There’s about $50T or more in debt insturments out there that are being destroyed verses the $2T being created. Kinda like trying to kick start a 747. We got deflation now. There’s never been inflation during a housing down cycle like this. Banks are not lending, people are not borrowing. And debt is being destroyed. Velocity of money is crawling.
How anyone gets inflation outta this is beyond me.

And gold could be topping right now. It costs about $500 and ounce to get it. At $900, that’s a pretty good premium. If it goes over $1000, it’s in bubble territory. It’s really good as an accurate indictor of the currencies purchasing power. So it’s got that going for it. But if it’s measured in US$, it could be stagnating for a while. IMO

[Arraya]

Our fate rests with the rest of the world. Our dollar is held up due to it’s status as the reserve currency. If we lose that who knows how much it will fall but I would presume it would be quite significant.

http://news.goldseek.com/GoldenJackass/1223569353.php

HUGE RISK OF LOSING WORLD RESERVE CURRENCY: As preface, the world banking structure rests atop a world currency foundation denominated in USDollars, with USTreasury Bonds and USAgency Mortgage Bonds serving the primary role as financial instruments. These toxic building blocks are all really bad lego blocks. Foreigners must respond very soon, to replace the US$ as global reserve currency, or else risk a similar implosion to their banking systems. Many USAgency Bonds have been replaced by USTBonds, not much of an upgrade. If the USTreasurys soon suffer in the heart attack seizures underway, foreign economies will be at risk of serious deterioration. So foreigners are working toward a solution. One might be announced soon, with a new world reserve basket announced, based upon the Euro, Russian ruble, Japanese yen, and newly crowned Gulf dinar. The common theme is these are all currencies from nations boasting export surplus. They are taking action, but behind the scenes, like in Berlin. The consequence to the USEconomy is dire. The beleaguered nation would be forced to attract foreign capital, and bid up foreign currencies in order to purchase crude oil. The word inflation would soon be replaced in the press networks with the word “hyper-inflation” as the Untied States enters the Third World overnight. It seems that the vast majority will be caught blindsided. Not the Hat Trick Letter!

http://www.atimes.com/atimes/China_Business/JG30Cb01.html

Breaking free from dollar hegemony
By Henry C K Liu

The vast expansion of US-led globalized trade since the Cold War ended in 1991 had been fueled by unsustainable serial debt bubbles built on dollar hegemony, which came into existence on a global scale with the emergence of deregulated global financial markets that made cross-border flow of funds routine since the 1990s.

Dollar hegemony is a geopolitically constructed peculiarity through which critical commodities, the most notable being oil, are denominated in fiat dollars, not backed by gold or other species since then president Richard Nixon took the US dollar off gold in 1971. The recycling of petro-dollars into other dollar assets is the price the US has extracted from oil-producing countries for US tolerance of the oil-exporting cartel since 1973. After that, everyone accepts dollars because dollars can buy oil, and every

economy needs oil. Dollar hegemony separates the trade value of every currency from direct connection to the productivity of the issuing economy to link it directly to the size of dollar reserves held by the issuing central bank. Dollar hegemony enables the US to own indirectly but essentially the entire global economy by requiring its wealth to be denominated in fiat dollars that the US can print at will with little in the way of monetary penalties.

Added all up it could be massive deflation (contraction of money supply) + devaluation of currency.

[Arraya]

Our fate rests with the rest of the world. Our dollar is held up due to it’s status as the reserve currency. If we lose that who knows how much it will fall but I would presume it would be quite significant.

http://news.goldseek.com/GoldenJackass/1223569353.php

HUGE RISK OF LOSING WORLD RESERVE CURRENCY: As preface, the world banking structure rests atop a world currency foundation denominated in USDollars, with USTreasury Bonds and USAgency Mortgage Bonds serving the primary role as financial instruments. These toxic building blocks are all really bad lego blocks. Foreigners must respond very soon, to replace the US$ as global reserve currency, or else risk a similar implosion to their banking systems. Many USAgency Bonds have been replaced by USTBonds, not much of an upgrade. If the USTreasurys soon suffer in the heart attack seizures underway, foreign economies will be at risk of serious deterioration. So foreigners are working toward a solution. One might be announced soon, with a new world reserve basket announced, based upon the Euro, Russian ruble, Japanese yen, and newly crowned Gulf dinar. The common theme is these are all currencies from nations boasting export surplus. They are taking action, but behind the scenes, like in Berlin. The consequence to the USEconomy is dire. The beleaguered nation would be forced to attract foreign capital, and bid up foreign currencies in order to purchase crude oil. The word inflation would soon be replaced in the press networks with the word “hyper-inflation” as the Untied States enters the Third World overnight. It seems that the vast majority will be caught blindsided. Not the Hat Trick Letter!

http://www.atimes.com/atimes/China_Business/JG30Cb01.html

Breaking free from dollar hegemony
By Henry C K Liu

The vast expansion of US-led globalized trade since the Cold War ended in 1991 had been fueled by unsustainable serial debt bubbles built on dollar hegemony, which came into existence on a global scale with the emergence of deregulated global financial markets that made cross-border flow of funds routine since the 1990s.

Dollar hegemony is a geopolitically constructed peculiarity through which critical commodities, the most notable being oil, are denominated in fiat dollars, not backed by gold or other species since then president Richard Nixon took the US dollar off gold in 1971. The recycling of petro-dollars into other dollar assets is the price the US has extracted from oil-producing countries for US tolerance of the oil-exporting cartel since 1973. After that, everyone accepts dollars because dollars can buy oil, and every

economy needs oil. Dollar hegemony separates the trade value of every currency from direct connection to the productivity of the issuing economy to link it directly to the size of dollar reserves held by the issuing central bank. Dollar hegemony enables the US to own indirectly but essentially the entire global economy by requiring its wealth to be denominated in fiat dollars that the US can print at will with little in the way of monetary penalties.

Added all up it could be massive deflation (contraction of money supply) + devaluation of currency.

[Arraya]

Our fate rests with the rest of the world. Our dollar is held up due to it’s status as the reserve currency. If we lose that who knows how much it will fall but I would presume it would be quite significant.

http://news.goldseek.com/GoldenJackass/1223569353.php

HUGE RISK OF LOSING WORLD RESERVE CURRENCY: As preface, the world banking structure rests atop a world currency foundation denominated in USDollars, with USTreasury Bonds and USAgency Mortgage Bonds serving the primary role as financial instruments. These toxic building blocks are all really bad lego blocks. Foreigners must respond very soon, to replace the US$ as global reserve currency, or else risk a similar implosion to their banking systems. Many USAgency Bonds have been replaced by USTBonds, not much of an upgrade. If the USTreasurys soon suffer in the heart attack seizures underway, foreign economies will be at risk of serious deterioration. So foreigners are working toward a solution. One might be announced soon, with a new world reserve basket announced, based upon the Euro, Russian ruble, Japanese yen, and newly crowned Gulf dinar. The common theme is these are all currencies from nations boasting export surplus. They are taking action, but behind the scenes, like in Berlin. The consequence to the USEconomy is dire. The beleaguered nation would be forced to attract foreign capital, and bid up foreign currencies in order to purchase crude oil. The word inflation would soon be replaced in the press networks with the word “hyper-inflation” as the Untied States enters the Third World overnight. It seems that the vast majority will be caught blindsided. Not the Hat Trick Letter!

http://www.atimes.com/atimes/China_Business/JG30Cb01.html

Breaking free from dollar hegemony
By Henry C K Liu

The vast expansion of US-led globalized trade since the Cold War ended in 1991 had been fueled by unsustainable serial debt bubbles built on dollar hegemony, which came into existence on a global scale with the emergence of deregulated global financial markets that made cross-border flow of funds routine since the 1990s.

Dollar hegemony is a geopolitically constructed peculiarity through which critical commodities, the most notable being oil, are denominated in fiat dollars, not backed by gold or other species since then president Richard Nixon took the US dollar off gold in 1971. The recycling of petro-dollars into other dollar assets is the price the US has extracted from oil-producing countries for US tolerance of the oil-exporting cartel since 1973. After that, everyone accepts dollars because dollars can buy oil, and every

economy needs oil. Dollar hegemony separates the trade value of every currency from direct connection to the productivity of the issuing economy to link it directly to the size of dollar reserves held by the issuing central bank. Dollar hegemony enables the US to own indirectly but essentially the entire global economy by requiring its wealth to be denominated in fiat dollars that the US can print at will with little in the way of monetary penalties.

Added all up it could be massive deflation (contraction of money supply) + devaluation of currency.

[Arraya]

Our fate rests with the rest of the world. Our dollar is held up due to it’s status as the reserve currency. If we lose that who knows how much it will fall but I would presume it would be quite significant.

http://news.goldseek.com/GoldenJackass/1223569353.php

HUGE RISK OF LOSING WORLD RESERVE CURRENCY: As preface, the world banking structure rests atop a world currency foundation denominated in USDollars, with USTreasury Bonds and USAgency Mortgage Bonds serving the primary role as financial instruments. These toxic building blocks are all really bad lego blocks. Foreigners must respond very soon, to replace the US$ as global reserve currency, or else risk a similar implosion to their banking systems. Many USAgency Bonds have been replaced by USTBonds, not much of an upgrade. If the USTreasurys soon suffer in the heart attack seizures underway, foreign economies will be at risk of serious deterioration. So foreigners are working toward a solution. One might be announced soon, with a new world reserve basket announced, based upon the Euro, Russian ruble, Japanese yen, and newly crowned Gulf dinar. The common theme is these are all currencies from nations boasting export surplus. They are taking action, but behind the scenes, like in Berlin. The consequence to the USEconomy is dire. The beleaguered nation would be forced to attract foreign capital, and bid up foreign currencies in order to purchase crude oil. The word inflation would soon be replaced in the press networks with the word “hyper-inflation” as the Untied States enters the Third World overnight. It seems that the vast majority will be caught blindsided. Not the Hat Trick Letter!

http://www.atimes.com/atimes/China_Business/JG30Cb01.html

Breaking free from dollar hegemony
By Henry C K Liu

The vast expansion of US-led globalized trade since the Cold War ended in 1991 had been fueled by unsustainable serial debt bubbles built on dollar hegemony, which came into existence on a global scale with the emergence of deregulated global financial markets that made cross-border flow of funds routine since the 1990s.

Dollar hegemony is a geopolitically constructed peculiarity through which critical commodities, the most notable being oil, are denominated in fiat dollars, not backed by gold or other species since then president Richard Nixon took the US dollar off gold in 1971. The recycling of petro-dollars into other dollar assets is the price the US has extracted from oil-producing countries for US tolerance of the oil-exporting cartel since 1973. After that, everyone accepts dollars because dollars can buy oil, and every

economy needs oil. Dollar hegemony separates the trade value of every currency from direct connection to the productivity of the issuing economy to link it directly to the size of dollar reserves held by the issuing central bank. Dollar hegemony enables the US to own indirectly but essentially the entire global economy by requiring its wealth to be denominated in fiat dollars that the US can print at will with little in the way of monetary penalties.

Added all up it could be massive deflation (contraction of money supply) + devaluation of currency.

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