Poor U.S. Dollar!

Poor Nice Government Men! The US DOLLAR must be giving them fits. It fell nearly 50 points again today to close just above 82, at 82.064. When it falls through 82, the hyenas and jackals will all jump on, taking it much further. Standing below the 200 DMA, it only needs a tiny push to fall off the ledge. Some nations have called for replacing the dollar as a global reserve currency. To happen, says BlackRock Managing Director Aldo Roldan, another currency must provide :

Deep liquidity.

Value that makes people around the globe willing to pocket it.

Acceptability for accounting.

A forward market for establishing its future value.
GEE! THAT SOUNDS LIKE GOLD AND SILVER!

 

Log in or Sign up to hide this ad.

You can still buy more Pounds, Euros, Barrels of Oil, copper, steel scrap, house, shares of stock and etc with a US Dollar now than you could on 09/01/2008.

 

when can we see one u.s. dollar to five chinese yuan?. or one euro to two u.s. dollar?.

 

Well last year I could get some $2+ for my £1 now I get $1.50

 

This is exactly why I've been investing in silver eagles and junk silver coinage. It's also the reason I like to roll search, it's because it's the cheapest way to acquire silver coins, might not be the quickest way, but it's the cheapest, and it gives you something to do all day.

 

The name of this thread should have been "Poor other currencies !"

 

I can kinda agree to that since the dollar crash will cause people all over the world to loose faith in paper money in general, no matter which country issued the paper money, but out of all the major currencies, I think it's obvious that the US dollar will be the first to become worthless, but unfortunately, after the dollar collapses, all the other major currencies will go with it, which is why we invest in silver

 

Poor us !

What has kept the Fiat currency of the U.S. going is you.
Your hourly productivity and technological superior products was the key to our survival.
Greed from those we send to Washington has now taken away our edge.
Trying to make drastic changes all at once will have a certain amount of failures just by the odds.
Never change what works, but make slow moves to show direction while you figure out the proper path.

Pep

 

When I was in high school, coins were made of silver. Since then, our fiat money has lost over 90% of its value. So, I'd question whether our fiat currency is going anywhere but down.

 

Don't make the mistake people often do when talking about the value of a currency to confuse measuring value by the relative purchasing power of the currency with foreign exchange rates, which are two entirely different animals.

Measured the first way, the US dollar is actually fairly stable over the long run, if you make adjustments for inflation.

Gold has been even more stable in its purchasing power... I remember someone pointing out once while $20 certaintly doesn't but now what it did 100 years ago... the amount of gold in a $20 gold piece has approximately the same buying power now as it did then. You're looking for a stable store of wealth, can't do much better than gold.

You want to play the foreign exchange game, good luck. There's a lot to keep track of though when you try to forsee the trends... when you invest in a stock, you're trying to figure out how the company is performing and what they will do to the stock price. Foreign exchange investing is betting on economies of entire countries... good luck with that! However, you can make money doing it, if you know what you're doing (just ask George Soros, who made a significant portion of his wealth betting on the exchange rate between the US dollar and the British pound).

 

People fail to realize that while the price of stocks plunged at the end of last year - the value of the US Dollar increased. Therefore the decrease in the purchasing power of their stock didn't decrease as greatly as the stock price. And the stock price rally this year has been accompanied with a decrease in the value of the US Dollar.

 

Correct. Every currency in the dollar index is falling. If three men jump off the roof of a building, the one falling the slowest isn't really rising.:thumb:

 

They would I believe all fall at the same rate unless one has a parachute LOL :kewl:

 

And that's the problem..currently there is no other currency that can fill these requirements.

For this reason, for now and the foreseeable future, the dollar will remain the world's reserve currency, even if the U.S. loses its AAA rating (which is likely to happen).

Because world economic conditions are so challenging, many countries (including China) are trying to de-value their currencies so that their export markets remain healthy. This will likely help the price of gold and silver, but it will not result in gold and/or silver becoming the world reserve currency.

 

I agree with all the above. Let me add two more big bad ones.
1). The announcement today about the defaulted housing loans now reaching almost 12% of all loans. That is like one out of every eight loan. Did you see what the market did when that was announced? Confidence in a quicker than expected recovery went flying out the window at full speed.

2). with the default in loans rising, the banks are beginning to raise their interest rates. This bad, bad, bad. Snowball effect. higher rates= less loans. LESS LOANS=LESS business=higher rates etc., etc. So CRASH goes the dollar. And did you ever try to stop an avalanche???

 

Change

Now every one knows what change is ! That is when both parties do the same thing to you, and blame it on the one that was last in power.

Pep

" Reafirm States Rights "

 

Or is REALLY Big and has lots of wind resistance :bigeyes:

 

The American people will never knowingly adopt Socialism. But under the name of 'liberalism' they will adopt every fragment of the Socialist program, until one day America will be a Socialist nation, without knowing how it happened." - Socialist Norman Thomas

This is what is undoing the dollar. People who believe in wealth redistribution. Which is the same as saying all of us should be equally poor and those who created this situation (politicians) will be the rich gate keepers to keep us that way. Joe the Plumber was a really evil guy right? Terrible capitalists making 200 K/year. The fall of the economy is planned. Desperate, scared people accept illogical things like printing trillions of dollars and giving it to the people who won't create any wealth, jobs, or do anything productive with it. They also accept giving up their personal and economic freedoms so big Bro could save them from their plight. Create a disaster and then pose as the savior. A technique of nefarious groups.
PS- approx 44 billion was given to Europe in the AIG bailout- nobody knew that as they were crucifiying the executives.

 

As of yesterday, according to Kitco.com, the Dollar Index fell below 80 to 79.22. It does not look good for the $ IMO.

 

In my case I hope i can get $2 for my 1 Euro as soon as possible. Thanks to the drop of the dollar the silver art bars prices on EBay are getting cheap for us here in Belgium.