This should kick the dollar up a bit next week

[patientrenter]

Arraya and XBoxBoy make good points.

Look at what China and other CBs do, not what they say. They clearly need to move to fewer dollars, and that will happen.

[peterb]

Me thinks the US$ will be rising for most of this years remainder. Keep in mind when measuring gold value , that compared to commodities, it gains in strength as the market dives. This makes gold mining much more profitable.
As credit is constricted/destoyed….money goes up and leveraged assets go down.

[peterb]

Me thinks the US$ will be rising for most of this years remainder. Keep in mind when measuring gold value , that compared to commodities, it gains in strength as the market dives. This makes gold mining much more profitable.
As credit is constricted/destoyed….money goes up and leveraged assets go down.

[peterb]

Me thinks the US$ will be rising for most of this years remainder. Keep in mind when measuring gold value , that compared to commodities, it gains in strength as the market dives. This makes gold mining much more profitable.
As credit is constricted/destoyed….money goes up and leveraged assets go down.

[peterb]

Me thinks the US$ will be rising for most of this years remainder. Keep in mind when measuring gold value , that compared to commodities, it gains in strength as the market dives. This makes gold mining much more profitable.
As credit is constricted/destoyed….money goes up and leveraged assets go down.

[peterb]

Me thinks the US$ will be rising for most of this years remainder. Keep in mind when measuring gold value , that compared to commodities, it gains in strength as the market dives. This makes gold mining much more profitable.
As credit is constricted/destoyed….money goes up and leveraged assets go down.

[socrattt]

Generally speaking when an asset such as physical silver and gold are so highly touted as being the next big investment, the buyers tend to be a little late to the party. Even though I am heavily invested in both, I believe that there is still quite a bit of upside potential. If you don’t believe we are headed for inflation or hyper-inflation then obviously you haven’t been paying attention. Regardless of what happens to the USD in the near term, the long term prediction is much different. You can only manipulate markets for so long. Unless things change dramatically in the next few years we will become the next Roman Empire.

Of course China would make a statement like this because they have a number of investments tied to the USD and if the USD was to fail, China would be in big trouble. They are mighty dependent on the US and they wouldn’t want that to happen. Chris don’t kid yourself, we haven’t reached a point of stability and we aren’t anywhere close. That said your comment above is far too premature. I believe one man’s comments may control prices for a week or two and a government can only control prices for a short period as well. As the truth comes out, which I believe will start happening in a dramatic way in 2009, commodities and other assets with value will prevail!!!!

[socrattt]

Generally speaking when an asset such as physical silver and gold are so highly touted as being the next big investment, the buyers tend to be a little late to the party. Even though I am heavily invested in both, I believe that there is still quite a bit of upside potential. If you don’t believe we are headed for inflation or hyper-inflation then obviously you haven’t been paying attention. Regardless of what happens to the USD in the near term, the long term prediction is much different. You can only manipulate markets for so long. Unless things change dramatically in the next few years we will become the next Roman Empire.

Of course China would make a statement like this because they have a number of investments tied to the USD and if the USD was to fail, China would be in big trouble. They are mighty dependent on the US and they wouldn’t want that to happen. Chris don’t kid yourself, we haven’t reached a point of stability and we aren’t anywhere close. That said your comment above is far too premature. I believe one man’s comments may control prices for a week or two and a government can only control prices for a short period as well. As the truth comes out, which I believe will start happening in a dramatic way in 2009, commodities and other assets with value will prevail!!!!

[socrattt]

Generally speaking when an asset such as physical silver and gold are so highly touted as being the next big investment, the buyers tend to be a little late to the party. Even though I am heavily invested in both, I believe that there is still quite a bit of upside potential. If you don’t believe we are headed for inflation or hyper-inflation then obviously you haven’t been paying attention. Regardless of what happens to the USD in the near term, the long term prediction is much different. You can only manipulate markets for so long. Unless things change dramatically in the next few years we will become the next Roman Empire.

Of course China would make a statement like this because they have a number of investments tied to the USD and if the USD was to fail, China would be in big trouble. They are mighty dependent on the US and they wouldn’t want that to happen. Chris don’t kid yourself, we haven’t reached a point of stability and we aren’t anywhere close. That said your comment above is far too premature. I believe one man’s comments may control prices for a week or two and a government can only control prices for a short period as well. As the truth comes out, which I believe will start happening in a dramatic way in 2009, commodities and other assets with value will prevail!!!!

[socrattt]

Generally speaking when an asset such as physical silver and gold are so highly touted as being the next big investment, the buyers tend to be a little late to the party. Even though I am heavily invested in both, I believe that there is still quite a bit of upside potential. If you don’t believe we are headed for inflation or hyper-inflation then obviously you haven’t been paying attention. Regardless of what happens to the USD in the near term, the long term prediction is much different. You can only manipulate markets for so long. Unless things change dramatically in the next few years we will become the next Roman Empire.

Of course China would make a statement like this because they have a number of investments tied to the USD and if the USD was to fail, China would be in big trouble. They are mighty dependent on the US and they wouldn’t want that to happen. Chris don’t kid yourself, we haven’t reached a point of stability and we aren’t anywhere close. That said your comment above is far too premature. I believe one man’s comments may control prices for a week or two and a government can only control prices for a short period as well. As the truth comes out, which I believe will start happening in a dramatic way in 2009, commodities and other assets with value will prevail!!!!

[socrattt]

Generally speaking when an asset such as physical silver and gold are so highly touted as being the next big investment, the buyers tend to be a little late to the party. Even though I am heavily invested in both, I believe that there is still quite a bit of upside potential. If you don’t believe we are headed for inflation or hyper-inflation then obviously you haven’t been paying attention. Regardless of what happens to the USD in the near term, the long term prediction is much different. You can only manipulate markets for so long. Unless things change dramatically in the next few years we will become the next Roman Empire.

Of course China would make a statement like this because they have a number of investments tied to the USD and if the USD was to fail, China would be in big trouble. They are mighty dependent on the US and they wouldn’t want that to happen. Chris don’t kid yourself, we haven’t reached a point of stability and we aren’t anywhere close. That said your comment above is far too premature. I believe one man’s comments may control prices for a week or two and a government can only control prices for a short period as well. As the truth comes out, which I believe will start happening in a dramatic way in 2009, commodities and other assets with value will prevail!!!!

[Arraya]

Xboxboy does make good points

IMO, We are deflating now, just like during the 30s. I think this is observable if you tally up inflationary forces verse deflationary forces it makes a net contraction. The Fed, at this point, can only print money to inflate because normal channels are clogged up. Banks balance sheets will be impaired for years to come and the economy is not producing any new consumers which can take out debt to inflate. Deflation abounds.

I actually agree with Denninger on the degree.

I am quickly running out of possible scenarios to prevent a severe deflationary depression from taking place. By “severe” I mean 20%+ U3 unemployment, GDP contraction of at least 25%, and a possible loss of federal funding capacity leading to the immediate destruction of Medicare, Medicaid and Social Security, a 50% reduction of defense spending and near-complete-elimination of all other Federal Programs due to a “sudden stop” in the ability to fund Treasury issuance. Yes, it could get that bad, and it could happen a lot faster than you think.

Normally, this would be bullish for the USD. Though, if you follow the effects of that kind of deflation out to the national and international level i.e paying back national debts, perception of the dollar, printing to make up shortfalls, etc… What happens?

Then again, I don’t look at things from an investment standpoint anymore. More of a social cohesion and international conflict standpoint. If my precious metals or dollars dramatically reduce in value, I’m emotionally prepared

It’s the age of uncertainty, that’s for sure…

[Arraya]

Xboxboy does make good points

IMO, We are deflating now, just like during the 30s. I think this is observable if you tally up inflationary forces verse deflationary forces it makes a net contraction. The Fed, at this point, can only print money to inflate because normal channels are clogged up. Banks balance sheets will be impaired for years to come and the economy is not producing any new consumers which can take out debt to inflate. Deflation abounds.

I actually agree with Denninger on the degree.

I am quickly running out of possible scenarios to prevent a severe deflationary depression from taking place. By “severe” I mean 20%+ U3 unemployment, GDP contraction of at least 25%, and a possible loss of federal funding capacity leading to the immediate destruction of Medicare, Medicaid and Social Security, a 50% reduction of defense spending and near-complete-elimination of all other Federal Programs due to a “sudden stop” in the ability to fund Treasury issuance. Yes, it could get that bad, and it could happen a lot faster than you think.

Normally, this would be bullish for the USD. Though, if you follow the effects of that kind of deflation out to the national and international level i.e paying back national debts, perception of the dollar, printing to make up shortfalls, etc… What happens?

Then again, I don’t look at things from an investment standpoint anymore. More of a social cohesion and international conflict standpoint. If my precious metals or dollars dramatically reduce in value, I’m emotionally prepared

It’s the age of uncertainty, that’s for sure…

[Arraya]

Xboxboy does make good points

IMO, We are deflating now, just like during the 30s. I think this is observable if you tally up inflationary forces verse deflationary forces it makes a net contraction. The Fed, at this point, can only print money to inflate because normal channels are clogged up. Banks balance sheets will be impaired for years to come and the economy is not producing any new consumers which can take out debt to inflate. Deflation abounds.

I actually agree with Denninger on the degree.

I am quickly running out of possible scenarios to prevent a severe deflationary depression from taking place. By “severe” I mean 20%+ U3 unemployment, GDP contraction of at least 25%, and a possible loss of federal funding capacity leading to the immediate destruction of Medicare, Medicaid and Social Security, a 50% reduction of defense spending and near-complete-elimination of all other Federal Programs due to a “sudden stop” in the ability to fund Treasury issuance. Yes, it could get that bad, and it could happen a lot faster than you think.

Normally, this would be bullish for the USD. Though, if you follow the effects of that kind of deflation out to the national and international level i.e paying back national debts, perception of the dollar, printing to make up shortfalls, etc… What happens?

Then again, I don’t look at things from an investment standpoint anymore. More of a social cohesion and international conflict standpoint. If my precious metals or dollars dramatically reduce in value, I’m emotionally prepared

It’s the age of uncertainty, that’s for sure…

[Arraya]

Xboxboy does make good points

IMO, We are deflating now, just like during the 30s. I think this is observable if you tally up inflationary forces verse deflationary forces it makes a net contraction. The Fed, at this point, can only print money to inflate because normal channels are clogged up. Banks balance sheets will be impaired for years to come and the economy is not producing any new consumers which can take out debt to inflate. Deflation abounds.

I actually agree with Denninger on the degree.

I am quickly running out of possible scenarios to prevent a severe deflationary depression from taking place. By “severe” I mean 20%+ U3 unemployment, GDP contraction of at least 25%, and a possible loss of federal funding capacity leading to the immediate destruction of Medicare, Medicaid and Social Security, a 50% reduction of defense spending and near-complete-elimination of all other Federal Programs due to a “sudden stop” in the ability to fund Treasury issuance. Yes, it could get that bad, and it could happen a lot faster than you think.

Normally, this would be bullish for the USD. Though, if you follow the effects of that kind of deflation out to the national and international level i.e paying back national debts, perception of the dollar, printing to make up shortfalls, etc… What happens?

Then again, I don’t look at things from an investment standpoint anymore. More of a social cohesion and international conflict standpoint. If my precious metals or dollars dramatically reduce in value, I’m emotionally prepared

It’s the age of uncertainty, that’s for sure…

[Author]

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