How to protect against hyperinflation and destruction of the US dollar

[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 Many USAgency Bonds have been replaced by USTBonds, not much of an upgrade.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.

[stockstradr]

the US$ should stay as a superior currency for a year or two. Cash in a crash.

as usual I’m finding another peterb post to be brilliant, and teaching me a thing or two. I agree with your entire post.

Did I mention I dumped all my gold a few days ago at $910/ounce.

I sold it and moved into a 2X long position on the stock indexes. Here comes our Fool’s Rally. Wait and see. Also I’m guessing money flows from gold into that stock market Fool’s Rally, pulling down gold prices, leaving gold fully exposed to the recession’s deflationary forces.

We might see gold hit $750 within a month.

[stockstradr]

the US$ should stay as a superior currency for a year or two. Cash in a crash.

as usual I’m finding another peterb post to be brilliant, and teaching me a thing or two. I agree with your entire post.

Did I mention I dumped all my gold a few days ago at $910/ounce.

I sold it and moved into a 2X long position on the stock indexes. Here comes our Fool’s Rally. Wait and see. Also I’m guessing money flows from gold into that stock market Fool’s Rally, pulling down gold prices, leaving gold fully exposed to the recession’s deflationary forces.

We might see gold hit $750 within a month.

[stockstradr]

the US$ should stay as a superior currency for a year or two. Cash in a crash.

as usual I’m finding another peterb post to be brilliant, and teaching me a thing or two. I agree with your entire post.

Did I mention I dumped all my gold a few days ago at $910/ounce.

I sold it and moved into a 2X long position on the stock indexes. Here comes our Fool’s Rally. Wait and see. Also I’m guessing money flows from gold into that stock market Fool’s Rally, pulling down gold prices, leaving gold fully exposed to the recession’s deflationary forces.

We might see gold hit $750 within a month.

[stockstradr]

the US$ should stay as a superior currency for a year or two. Cash in a crash.

as usual I’m finding another peterb post to be brilliant, and teaching me a thing or two. I agree with your entire post.

Did I mention I dumped all my gold a few days ago at $910/ounce.

I sold it and moved into a 2X long position on the stock indexes. Here comes our Fool’s Rally. Wait and see. Also I’m guessing money flows from gold into that stock market Fool’s Rally, pulling down gold prices, leaving gold fully exposed to the recession’s deflationary forces.

We might see gold hit $750 within a month.

[stockstradr]

the US$ should stay as a superior currency for a year or two. Cash in a crash.

as usual I’m finding another peterb post to be brilliant, and teaching me a thing or two. I agree with your entire post.

Did I mention I dumped all my gold a few days ago at $910/ounce.

I sold it and moved into a 2X long position on the stock indexes. Here comes our Fool’s Rally. Wait and see. Also I’m guessing money flows from gold into that stock market Fool’s Rally, pulling down gold prices, leaving gold fully exposed to the recession’s deflationary forces.

We might see gold hit $750 within a month.

[peterb]

Just echoing what I’ve read that reflects what I am actually observing. I tend to agree with Van Eeden about a good price for gold at around $760. But it could be a very good bubble play for the next year. So I am sitting tight at 30% of my portfolio.
As for other currencies…take a look at the coveted Euro or Renminbi. These currencies and the underlying economics are fragile in their own ways. The Euro is no great shakes. Just check out the FT on a daily basis, big bank failures are on the way and RE bubbles a bursting. China is down to 2% internal GDP(ex exports). So without exports, it’s facing public unrest and very high unemployment. Their stock market is down 50% from it’s highs this year. This is a global melt-down and there aint no decoupling going on. Saudi’s are looking at global slow down for oil and price reductions are coming again.
It’s an interdependant world and the US$ happens to still carry the day. This may change in the next decade and probably will. But for now, it’s the game of choice. Fear rules the markets now.

I would also be careful of traditional technical analysis right now as it’s not working too well. This is history time, so I would lean on historic evidence to place my bets. It’s been uncanny how accurate this has been for the last year.

[peterb]

Just echoing what I’ve read that reflects what I am actually observing. I tend to agree with Van Eeden about a good price for gold at around $760. But it could be a very good bubble play for the next year. So I am sitting tight at 30% of my portfolio.
As for other currencies…take a look at the coveted Euro or Renminbi. These currencies and the underlying economics are fragile in their own ways. The Euro is no great shakes. Just check out the FT on a daily basis, big bank failures are on the way and RE bubbles a bursting. China is down to 2% internal GDP(ex exports). So without exports, it’s facing public unrest and very high unemployment. Their stock market is down 50% from it’s highs this year. This is a global melt-down and there aint no decoupling going on. Saudi’s are looking at global slow down for oil and price reductions are coming again.
It’s an interdependant world and the US$ happens to still carry the day. This may change in the next decade and probably will. But for now, it’s the game of choice. Fear rules the markets now.

I would also be careful of traditional technical analysis right now as it’s not working too well. This is history time, so I would lean on historic evidence to place my bets. It’s been uncanny how accurate this has been for the last year.

[peterb]

Just echoing what I’ve read that reflects what I am actually observing. I tend to agree with Van Eeden about a good price for gold at around $760. But it could be a very good bubble play for the next year. So I am sitting tight at 30% of my portfolio.
As for other currencies…take a look at the coveted Euro or Renminbi. These currencies and the underlying economics are fragile in their own ways. The Euro is no great shakes. Just check out the FT on a daily basis, big bank failures are on the way and RE bubbles a bursting. China is down to 2% internal GDP(ex exports). So without exports, it’s facing public unrest and very high unemployment. Their stock market is down 50% from it’s highs this year. This is a global melt-down and there aint no decoupling going on. Saudi’s are looking at global slow down for oil and price reductions are coming again.
It’s an interdependant world and the US$ happens to still carry the day. This may change in the next decade and probably will. But for now, it’s the game of choice. Fear rules the markets now.

I would also be careful of traditional technical analysis right now as it’s not working too well. This is history time, so I would lean on historic evidence to place my bets. It’s been uncanny how accurate this has been for the last year.

[peterb]

Just echoing what I’ve read that reflects what I am actually observing. I tend to agree with Van Eeden about a good price for gold at around $760. But it could be a very good bubble play for the next year. So I am sitting tight at 30% of my portfolio.
As for other currencies…take a look at the coveted Euro or Renminbi. These currencies and the underlying economics are fragile in their own ways. The Euro is no great shakes. Just check out the FT on a daily basis, big bank failures are on the way and RE bubbles a bursting. China is down to 2% internal GDP(ex exports). So without exports, it’s facing public unrest and very high unemployment. Their stock market is down 50% from it’s highs this year. This is a global melt-down and there aint no decoupling going on. Saudi’s are looking at global slow down for oil and price reductions are coming again.
It’s an interdependant world and the US$ happens to still carry the day. This may change in the next decade and probably will. But for now, it’s the game of choice. Fear rules the markets now.

I would also be careful of traditional technical analysis right now as it’s not working too well. This is history time, so I would lean on historic evidence to place my bets. It’s been uncanny how accurate this has been for the last year.

[peterb]

Just echoing what I’ve read that reflects what I am actually observing. I tend to agree with Van Eeden about a good price for gold at around $760. But it could be a very good bubble play for the next year. So I am sitting tight at 30% of my portfolio.
As for other currencies…take a look at the coveted Euro or Renminbi. These currencies and the underlying economics are fragile in their own ways. The Euro is no great shakes. Just check out the FT on a daily basis, big bank failures are on the way and RE bubbles a bursting. China is down to 2% internal GDP(ex exports). So without exports, it’s facing public unrest and very high unemployment. Their stock market is down 50% from it’s highs this year. This is a global melt-down and there aint no decoupling going on. Saudi’s are looking at global slow down for oil and price reductions are coming again.
It’s an interdependant world and the US$ happens to still carry the day. This may change in the next decade and probably will. But for now, it’s the game of choice. Fear rules the markets now.

I would also be careful of traditional technical analysis right now as it’s not working too well. This is history time, so I would lean on historic evidence to place my bets. It’s been uncanny how accurate this has been for the last year.

[greekfire]

peterb, thanks for the insights. What does your analysis say about a potential war with Iran or some other “problem” nation? On the one hand war seems like a bad move, on the other, it seems like the lazy-man’s solution out of this mess. Your thoughts?

[greekfire]

peterb, thanks for the insights. What does your analysis say about a potential war with Iran or some other “problem” nation? On the one hand war seems like a bad move, on the other, it seems like the lazy-man’s solution out of this mess. Your thoughts?

[greekfire]

peterb, thanks for the insights. What does your analysis say about a potential war with Iran or some other “problem” nation? On the one hand war seems like a bad move, on the other, it seems like the lazy-man’s solution out of this mess. Your thoughts?

[greekfire]

peterb, thanks for the insights. What does your analysis say about a potential war with Iran or some other “problem” nation? On the one hand war seems like a bad move, on the other, it seems like the lazy-man’s solution out of this mess. Your thoughts?

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