Dollar Crash: Compared To What?

I don't think any of these countries are going to stomach any austerity if they have any say in it. Populists are running around telling the deadbeats of all the things they're entitled to. Why would they all of a sudden get up and say, "Hey, I'm tired of being worthless. I'm going to start being productive again."

 

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I don't think it's that simple. The big difference between now and then is that the deficit spending was being done to build stuff at home and blow things up abroad. Today, the deficit spending is not producing anything other than a journal entry from the productive to the unproductive.

 

Agreed, it is not that simple, there are other differences also, the only point is for the DOOM and GLOOMERS is things can and have worked out in the past when things were looking pretty bad, in fact it is actually the norm, and not the exception.

 

Actually it is just the opposite. Looking in the very short term what you say is true and for our nation. But extend it out in time a little and things have never gone well. This isn't the nation it used to be either. How can one compare the "greatest generation's" productivity, work ethic and moral character to this generation's entitlement mentality?

 

Sounds like we need a "Glass Half Full/Glass Half Empty" forum.

 

I don't buy the "greatest generation" vs. "modern generation" comparison. It is almost always a member of such generation making the comparison. Each was/is different and timelines are usually quoted to emphasize their viewpoint. Today is a much different challenge ( not necessarily easier or harder) than the " greatest generation " faced.

 

"Always with the negative waves Moriarty. Always with the negative waves."
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It's not that the dollar was "weaker" back in 2008, but that the whole economy was on the verge of collapse. If you stop and think about it we still are on the verge of collapse. There is an estimated $250 billion dollars circulating in currency. That is about $200 billion dollars LESS than what Walmart sells annually, and Walmart is only one store. So when you hear the National Debt is causing our problems, you should say it's only a symptom of a much bigger problem. The problem that was causing the panic back in 2008 was the same problem that is cause for concern still and that is that we have a credit bubble that is about to burst. We have roughly $60 trillion dollars floating around in credit, and we have $250 billion dollars to cover it. Already we seeing big millionaires leave this country to move to other countries and they are taking their big money with them. Texas and Germany have requested their gold deposit be returned and they've not gotten them. The banks have been informed to notify law enforcement if customers want a mere $5,000 in cash from their own accounts; thankfully, not many have complied, yet. The problem is, if people begin to lose faith in bank deposits being available to them, the same scenario that caused the 2008 problem could repeat itself ... in short, what if those holding $60 Trillion dollars in credit and loans decide they want their money now? There would not be enough dollars to go around, all future credit/loans stop, all business would stop ... it doesn't take much to figure out next after witnessing Ferguson, Baltimore, and other places recently ... and here we all thought the TARP Bailouts was a combination of banker's greed and inept political leaders all these years, because the Feds knew if we knew what caused the real problem they couldn't possibly stop the panic for a mere $450 billion dollars in subsidies to big financial entities.

 

Don't know about Texas, but the Bundesbank's gold deposit in the US is there to stay. Last year, a volume of 85 t was shipped (not "returned") from New York to Germany, and more will be shipped later, including all the reserves that currently are in Paris. But even in five years from now, about 1,200 t will be in New York, plus almost 450 t in London.

Christian

 

I didn't want to overwhelm anyone with that fact, and I'm sure the same response is coming to Texas as well. Don't know what Texas with do when it officially comes, but it may be why Texas is listed as "hostile" territory for the current war games being played across the southwest (tongue-in-cheek). After working for the US Army for 15 years and doing audits of year end certified reports, I question all claims that there is gold being held in Fort Knox. I feel the same level of confidence concerning the claims that the NY Fed is holding physical gold for either Texas or Germany in its vaults. I don't trust any "wealth" that I can't see and hold in my hand. Banks are useful only for depositing just enough cash to cover a check I've just written, and it's getting to where they're not even able to be trusted with doing that.

 

Desertgem has a good point there. There are even quotes from Romans bemoaning the degeneration of the current
7 generation. Heh. Just for the record, I'm not of the greatest generation. I'm a very late boomer.