September 28, 2007

Got some bad news for you everyone. Your US dollars are no longer worth jack sh*t

Hey, congrats on your raise. Congrats on your stock portfolio. Congrats on your savings. Congrats on your housing bubble gains. Congrats on your 401k.


Poof - it's all gone. Slowly and surely, but not so slowly anymore, the US dollar is being intentionally devalued.

For those of you making and holding US dollars, you better figure out what the heck you're going to do about this dollar destruction to protect yourself and protect your wealth. 99% of your fellow sheeple don't pay attention to stuff like this, surprising since this affects every man, woman and child in America. But oh, you should pay attention.

Because as predicted, the US dollar is being destroyed.

Another New Low for the Dollar

Dollar Hits Seventh Consecutive Low With New Data Increasing Odds of US Rate Cut

The dollar hit another new low Friday as U.S. inflation data reinforced expectations that the Federal Reserve may cut interest rates again.

The 13-nation euro reached $1.4207 in late afternoon European trading -- exceeding its previous peak of $1.4189, reached Thursday, and setting the seventh record in as many trading days. The euro had bought $1.4160 in New York late Thursday

73 comments:

Anonymous said...

http://www.bullionvault.com/

gold at $745 and rising

Anonymous said...

dollar denominated oil prices skyrocketing

http://ap.google.com/article/ALeqM5i5TtajgUpSm7KY5jf-lCJGHBB-tAD8RUGAG84

Anonymous said...

What about selling things to Europe?

Anonymous said...

I've been all in gold and silver for two years now, but I still feel fucked. This is going to hurt. Trying to leave for Canada to beat the flight. Good prospects for University position this year. Wish me luck!

-MC

Batman said...

If it weren't so scary, it would be funny. Even Colbert report talked about it.

What does a country who is armed to the tits but in huge financial trouble typically do?

Gotta use those arms up while you can still afford to supply them.

DOPES said...

BIG DEAL.
.
.
THIS JUST MEANS WE EXPORT MORE.
.
.
IT IS GOOD FOR AMERICA.
.
.
MOST PEOPLE DON'T BUY FOREIGN GOODS ANYWAY.

Balanced View said...

Keith, can you please devote a blog post to all of the implications and consequences of a devalued dollar? Exactly what will happen as the dollar devalues? Everyone talks in general terms about it, or that the price of oil is rising, but what other specific consequences will there be?

Gary said...

If the dollar collapses, so will the global economy...

WWIV in 2012?

Anonymous said...

Greg Swann now advising his clients (buyers) to make lowball offers on dozens of houses at a time.

reponomics said...

I've been lurking for while but really have to comment now to straighten out some of this dribble about the deval of the dollar.

First off - to move your dollars today into a foreign currency would just be idiotic given the amount the dollar has weakened in the past 2 years. It is akin to buying a home after the market has risen for 2 years! The money has already been made in the devaluing dollar. (i.e. you missed that boat by sitting and talking about it the last year!!).

Second, the Euro is a relative new currency and the value of the dollar against the currency was set only a few years back. So when we say "Record levels against the Euro" we are talking about a relatively new exchange. If the level had been artificially set at say $1.45 US/EUR we'd be talking about a STRENGTHENING dollar right now!! Also, to put this dollar devalue in perspective - you are talking about approx. a 10% dealue of the dollar vs. foreign currency in the last year. Historic inflation is 3% and a good CD will get you 6%. No great money made in the "huge destruction" of the dollar!!

Let's keep things in perspective. If all you lemmings want to exchange your US $ to foreign currency go right ahead. But that ship has sailed, you may want to think real hard about ways to play a strengthening dollar over the next few years....

I have blue balls said...

Time to wipe your @rse with the greenback.All I hear all day is we are in a global economy, it's different this time.Buy stocks with international exposure such as cat, coke,mcd etc.We are in a major bull market from what the dopes on cnbc keep saying.I do not like the feeling of the market right now.Seems like we are up everyday and all the bad housing data is brushed off because the fed appears ready to cut rates at any cost.People are looking for return and it sure in the hell isn't in flipping homes like casey serin.

Anonymous said...

I'm so glad I've been saving the canadian coins I get in my change.

I am now a very rich man.

Anonymous said...

A couple of years ago, Warren Buffett made some big bets against the dollar. Is he still at it?

Anonymous said...

have any of you noticed that when you open a new account, the govt now asks lots of personal questions "for your security." amazing how we our handing our privacy rights to them on a platter because we are afraid of something our foreign policy exacerbates. 1984 much?

Anonymous said...

GOT GOLD

Anonymous said...

If that trend continues, the European Centyral Bank will probably cut rates, too, to avoid an implosion of Europe's export industry, especially Airbus. The Fed is still the leading central bank: they act, others follow. Will they lose it together with an end of the dollar hegemony? A sign that they lose it would be other central banks increasing rates and the Fed being forced to follow because of exploding long-term Treasury yields.

GT said...

seems like everyone is getting out of the $....dont follow the herd, do the opposite, isnt that what we've learned. so i will keep my $ thank you

Anonymous said...

At one point in 2002 $1US was worth $1.60 Canuck bucks. Now the two are equal, back to where it was in the 1970s.

This stuff is cyclical and the dollar will be strong again some day. Only immature and uneducated investors panic.

BTW how is that $800 gold from 1980 doing for y'all?

Bobby in CA said...

God, you're right. I went to the store this afternoon and they wouldn't accept my dollar bills. They demanded to be paid in gold. I've never seen that before!

I'm surprised you all didn't have a stroke during the last major dollar decline. Oh right, you're too young to remember that!

DB said...

I'm no fricken genius... so maybe you guys can educate me a little bit.

Anyway, it seems to me that one would want to do different things with different parts of your money. For instance: Part 1 - short term emergency money... have enough liquid for all expenses you may have for 6 months. Needs to be liquid and safe. Part 2 - long term money... for retirement that can grow through this and maybe 1 or 2 more 10 year cycles. Shouldn't you use that money to invest in things that are low in price and are going down? Like if it's recession time and stocks drop, wouldn't it be a good idea to buy stocks or stock funds with that money? And finally part 3 - money not needed in either to invest in hard assets gotten a firesale prices but pretty illiquid? I'm totally a novice here but I've gotten a lot of good insight from HP and the Comment Guys. Any further input is greatly appreciated.

Anonymous said...

El Keferonio,

You’re barking up the wrong tree.

The US is the most stable political and financial country on our Milky Way.
Other currencies may appear strong for short periods.
The Greenback is and will remain the most stable currency in our lifetime and for the foreseeable future.

And this is why it really does not matter (in the big picture) if rates go up or down.

The driver for foreign investments into this country has little to do with interest rates
And a lot more to do with the reason people across the globe risk everything to just be here, legal or illegal.

I can see an argument for precious metals in times of Dollar dips, but no other paper currency has a true advantage over the Dollar..

Anonymous said...

If that trend continues, the European Centyral Bank will probably cut rates, too, to avoid an implosion of Europe's export industry, especially Airbus. The Fed is still the leading central bank: they act, others follow.

That is partially correct. However, even Greenspan has indicated that Bernake has very little breathing room pertaining to interest rate reductions. So I doubt you will see too much movement on the downside. Especially if the dollar's continued weaking and increased oil prices start to get the population asking questions.

So while the central banks of Europe and Canada can adjust their interest rates accordingly, I doubt they will move too much. Despite our BS inflation numbers, the Europe (and Canada) know that inflation is existing right now, regardless of the "core" statistics brought out by the Fed Elves.

What is interest is an article I read regarding the money supply on Mish's site. Apparently, the Fed is reducing the amount of liquidity entering the system. Which is interesting considering Chopper Ben was adamant about his view that liquidity injections are good for what ails an economy. So my suspicion is the reduced liquidity is being done to offset the recent reductions in interest rates.

Anonymous said...

Remember The Fable.

Two guys are sleeping in a tent camping when they hear a bear rummaging around their campground looking for food.

One of the guys gets his tennis shoes and puts them on. The second guy says to him "are you stupid?, you can't outrun a bear!:

The first guy with the tennis shoes replies "I don't have to outrun the bear, I only have to outrun you."

The goal for smart folks like us is just to keep more worthless dollars than the sheeple. Do this by saving and investing properly and owning businesses etc.

The guy with the most worthless dollars still wins in the end.

Anonymous said...

At one point in 2002 $1US was worth $1.60 Canuck bucks. Now the two are equal, back to where it was in the 1970s

Nope, $1US = $0.99 canadian today

Anonymous said...

Dopes, what are we going export besides arms, airplanes, paper and food?
What else do we produce?

Most don't buy foreign goods anyway?
WTF, are you f__king crazy.
I don't think you are that stupid.

Anonymous said...

"I'm surprised you all didn't have a stroke during the last major dollar decline. Oh right, you're too young to remember that!"

last time they had to save the dollar they jacked up interest rates higher than dopes' age.

TM said...

First off - to move your dollars today into a foreign currency would just be idiotic given the amount the dollar has weakened in the past 2 years. It is akin to buying a home after the market has risen for 2 years! The money has already been made in the devaluing dollar. (i.e. you missed that boat by sitting and talking about it the last year!!).

This is a very good point. A panicked flight out of dollars right now is very much akin to a panicked buying of a house back in '04. It's just a poor bargain at the moment.

If you invested in gold and foreign currencies a few years ago, your foresight has been rewarded handsomely. If you did not, then really you're probably better off riding this thing out.

Anonymous said...

MOST PEOPLE DON'T BUY FOREIGN GOODS ANYWAY.
___________________________________

LOL! Is this a joke?

Try to find something in your local stores that is made in America. Just about everything anymore is manufactured abroad!

foxwoodlief said...

Cycles...always cycles. And Europe is any better? Large government spending on social programs..when we can't afford to defend them they'll have to pick up that subsidy too!

Exports will rise..how can Airbus compete with Boeing with higher costs? Their economy isn't dynamic and if we called the US an economic zone and just looked at state to state trade and production things look good here too...Germany has high exports but so does California. Where is the perspective?

The Euro launched at around $1.19, adjusted for inflation that would be $1.39 today. Don't forget it plummetted to what, $.87 before rebounding? Did people say the END OF THE EURO? And the Euro is still iffy...what if...Italy drops out...can't stay in budget or compete by inflating..etc.

Europe's housing market is worse than ours in Spain, France, England...and homes cost a lot all over western europe...$400,000 or more for a small flat? Please...

I lived in Europe...great things about it...but paradise? No place is!

Intrinsic value remains...$10 a hundred years ago, $100 today? If it buys the same goods and your income added a zero to so what? It is pychological.

And oil? So what, $82 a barrel? Inflation adjusted it would have to be at least $100 to reach the price during the oil shock of 1970s.

And if I bought Euros now and the cycle corrects? I loose...and it will correct, always does. You say don't buy high for a house but you always say buy high on gold, oil, euros, etc. You're not always right and you may get sued for someone following your bad advice.

Each person has to assess her or his needs and invest accordingly.

When the x&*(@ hits the fan in Europe with a housing collapse then what? The pound sterling will fall..the Euro will fall...then what? And Canada? My wife is Canadian and home values in Vancouver are obscene...and in Edmonton they have more than doubled in seven years. Everyone says it is different here....

bryce in canada (Vncvr&Clgry bubbls) said...

So you think we should sell things while they are at a low price (US dollars),
in order to buy things (other currencies or securities) while they are at a high price?

In other words you're saying, "Sell Now, Your Price Has Never Been Lower"

How is it that you understand to buy low and sell high with real estate, but with currencies you think like the sheeple?

Anonymous said...

GT said...

seems like everyone is getting out of the $....dont follow the herd, do the opposite, isnt that what we've learned. so i will keep my $ thank you

===============================

Ding Ding Ding Ding

Give this man a prize.

It's funny Keith, you are Mr. Conrarian usually. When everyone said buy a house you sold. When everyone was saying buy stocks, you sold and shorted. Yet now everyone is shitting themselves over the dollar and you are jumping on the bandwagon.

Following the herd never works.

Anonymous said...

"BTW how is that $800 gold from 1980 doing for y'all?"

The latest tactic from the haters is apparently to pretend that all gold bulls got in at $800 27 years ago. This keeps them from eating their hearts out over the fact that many of us got in at $300-$400 while they were still laughing at us.

Anonymous said...

Regulators Close Troubled NetBank
American Banker |
By Joe Adler


WASHINGTON — The Office of Thrift Supervision announced on Friday that it had closed NetBank. The shutdown marked the biggest failure of a depository institution since the savings and loan crisis.

The OTS appointed the Federal Deposit Insurance Corp. as the conservator for the $2.5 billion-asset Alpharetta, Ga., thrift, which had about $2.3 billion of deposits as of June 30.

NetBank, which had suffered a high mortgage exposure and failed bids to sell off nonperforming units, was the largest institution to fail in 15 years. Meritor Savings Bank of Philadelphia failed in December 1992 with $4.1 billion of assets and $2.9 billion of deposits.

The thrift, which specialized in Internet banking, was shut due to “early payment defaults on loans sold, weak underwriting, poor documentation, a lack of proper controls, and failed business strategies,” the OTS said.

“As a result, the OTS executed a formal enforcement action with NetBank in 2006 directing the institution to correct its operating deficiencies and enhance its capital position,” the OTS said. “While the institution continued to operate in excess of minimum capital standards, the actions taken to address these problems were unsuccessful and it became clear that high operating expenses combined with continuing losses were jeopardizing the institution’s viability.”

The OTS said it shut the thrift after NetBank’s efforts to sell to EverBank Financial Corp. fell through last week.

“The institution had no remaining prospects for raising capital and achieving profitability,” the OTS said. “Accordingly, the OTS exercised its authority under the Home Owners’ Loan Act to appoint the FDIC as receiver of the institution.”

Budvar said...

DOPES said...

BIG DEAL.
THIS JUST MEANS WE EXPORT MORE.
IT IS GOOD FOR AMERICA.
MOST PEOPLE DON'T BUY FOREIGN GOODS ANYWAY.


Yeah right Dopes, besides 747s, arms and pornography wtf does USA export these days?
As for "Most people dont buy foreign" yeah I really noticed that both Ford and GM both have waiting lists as long as your arm of people wanting their cars!!

keith said...

for the "dollar is gonna be fine" crowd

Uh, not sure if you noticed, but the dollar has lost half it's value ALREADY

It's already too late. If you held US$, you lost. Game over.

This is a funeral. I'm giving you the bad news, the dollar died. And it's just gonna die harder now.

However, I do expect the European central bank to intervene as the dollar approaches $1.50 to a euro. But the Fed and Bush administration have made the firm decision to destroy the dollar to solve the trade imbalance and bail out the banks and debtors.

The dollar is gonna be fine? Wow. That's a stretch. It's like saying don't worry, Elvis is gonna be fine.

He's dead.

Anonymous said...

Most currency experts (non-gold bugs) agree that the dollar is oversold and will likely strengthen in the comming months. Even with 5-6% inflation (not the made up goverment CPI numbers)the dollar is still a desirable reserve currency. Once foreign economies start to catch a cold we will see the long term trend reverse.

Anonymous said...

"Don`t worry, it`s gonna go back up"...some poor b@st@rd in the Argentina freefall.

Anonymous said...

what is said more... "there is never a better time to buy than now" by the NAR or "We believe in a strong dollar policy" by any one of the three previous treasury secs.???

Anonymous said...

The latest tactic from the haters is apparently to pretend that all gold bulls got in at $800 27 years ago. This keeps them from eating their hearts out over the fact that many of us got in at $300-$400 while they were still laughing at us.

========

You bought gold at $400 and now it is at $750. You sell you pay tax on a 90% gain.

I bought a $300K house with $15K down and sold it for $700K. I paid no tax on a 2500% gain.

You were saying...

Anonymous said...

Oh no!!

Yesterday I went to McDonald's and paid $4.99 for a Big Mac combo. Today I went again and it was...wait for it...$4.99.

My god it is the end of the world.

bryce in canada (Vncvr&Clgry bubbls) said...

The dollar will be fine.....
..... in about 7 or 8 years. Right now it is very very ill. But if you think it is gone forever, you are wrong; it is just going into a semi-coma for a while.

Generally if something's price is at a historic low (e.g., gold in 1998) it is not a good time to sell it. But it is often a good time to buy it.

Have you read anything recently about the personal debt levels, the savings levels, and the housing prices in the UK? It's even worse than the USA. The pound sterling is not going to disappear either; it will just become very sick for many years, like the US dollar.

I agree with everything you say about mortgages and realtors and housing prices, keith.

I agree that the US dollar is in very rough shape and will remain so for approximately another decade. But I disagree with a number of other things you've said about the currently crumbling US dollar.

The US dollar will be back. Not for many years, no, but it will be back.

Just like gold prices came back from severe lows in the late 90s to its current price.

Just like real estate prices came back from the end of the last housing bust.

Just like real estate prices will come back, yet again, after they have reached rock bottom following the current collosal housing bust's completion of the long and painful decline it has just begun, and tsunami-like wreckage of the entire economy.

Anonymous said...

I am suffering from an asset crisis just like the banks. I don't like any investment choice out there.

Houses and US stocks are too high.

US bonds won't keep up with inflation.

One sentence from Bernanke about defending the dollar (whether he means it or not) can turn the buck around and hose gold and foreign investments.

Maybe I should invest in paprika. At least my food will taste good ;).

No seriously, where *do* you put your money when you've been asleep at the wheel and wake up just in time to see the headlights of an oncoming truck?

Anonymous said...

Best quote I heard today:

This different way of thinking won't cure Wall Street of its "heads I win, tails I get bailed out" syndrome


http://tinyurl.com/2299bw

Anonymous said...

At one point in 2002 $1US was worth $1.60 Canuck bucks. Now the two are equal, back to where it was in the 1970s.

This stuff is cyclical and the dollar will be strong again some day. Only immature and uneducated investors panic.

BTW how is that $800 gold from 1980 doing for y'all?

September 28, 2007 7:07 PM
================================
This is a fraudulent argument because you left out the most important factor. On August 15, 1971 President Nixon at the urging of George Schultz pulled the plug on the Bretton Woods monetary system of "fixed exchange rates".

How can anyone who studies history and economics leave out this dastardly change in US economic policy which left the world with a floating exchange rate system ripe for private speculators and criminals?

There is today a quadrillion dollars of financial turnover and less than 1% of this has anything to do with the buying of physical goods. The rest of the transactions are all pure financial speculation.

Anonymous said...

September 28, 2007 (LPAC)--At a Congressional hearing yesterday on the malfeasance of ratings agencies, like Standard and Poor's, in hyping the mortgage securities bubble, Rep. Paul Kanjorski (D-PA) repeatedly noted that the mortgage securities blowout is now a "systemic financial crisis." It threatens American banks with failure like that of Britain's Northern Rock and other European banks, Kanjorsky implied in a colloquy with witness Prof. Joseph Mason of Drexel University.

Opening the hearing of the Financial Services Committee's Subcommittee on Capital Markets, Kanjorski said, "These were unprecedented systemic failures by the ratings agencies, across entire classes of financial products; and I'm concerned now about potential systemic failures in the international financial system." In response, witness Shaun Mathis, of Miller Mathis investment bank, said that the mortgage bubble collapse was far from over: "Financial markets are in the greatest danger since the Great Depression. There is nothing small or self-limiting about this problem. There will be collapses" of investment firms and banks.

Representative Kanjorski then challenged the witnesses to say whether they could possibly disagree that we are now facing a systemic threat to financial markets and banks. And he specifically asked Prof. Mason, "You say that 10% of U.S. bank assets are based on structured investment vehicles (SIVs), specifically several trillion dollars in CDOs; can these banks survive the collapse of these CDOs? Do they have the capital base to survive that?" Mason answered, "No, and the FDIC does not have the resources to handle that event either."

Anonymous said...

Goldman thinks otherwise:

"It expects the euro to fall back to $1.35 against the dollar over the next year, and sterling to tumble to $1.88 as the Bank of England pushes through three rate cuts."

Yoski said...

"What about selling things to Europe?"
What "things" are you talking about? Happy meals and cheesy fries maybe?

keith said...

It's kinda cute that the US still prints a paper dollar

Lowest paper bill here in England is the 5 pound note (about 10 dollars)

Get with it America. The dollar is dead and doesn't buy jack. Make it a coin and save some trees.

Anonymous said...

My co-worker bought a house in 2005 with $20K down and when his ARM adjusted, he went into foreclosure and lost everything. His wife left him and his savings were depleted in a futile attempt to save the McMansion. Now he's back living with his parents. It's the American Dream. LMAO

Yoski said...

" But that ship has sailed, you may want to think real hard about ways to play a strengthening dollar over the next few years...."

...and why do you think the dollar would be strengthening? I mean international investors are not exactly lining up to buy more toxic financial product spewing out of Wall Street, nor do we have much of anything of value to sell to the rest of the world to cover our imports (pharma & planes the only exception), hence the huge trade deficit. So again, why exactly do you think the dollar will be strengthening? Please explain.

Yoski said...

In the past the dollar dropped and came back many times. What's different this time is the huge trade deficit. That means other countries have more dollar than they know what to do with.
Secondly there has been a huge loss of confidence due to the toxic financial products. It will take a long time before confidence is restored.
The dollar will slide further unless we get the trade deficit under control and re-establish confidence in dollar denominated financial products. Both are unlikely at the moment.

Anonymous said...

"If the dollar collapses, so will the global economy..."

WRONG. Have you learned NOTHING from the past 10 years or so? We are a total non-factor when it comes to the global economy because the rest of the world can move away from the dollar and the adverse effects of inflation.

China and India took a crash course from US on how to industrialize. What took America over 100 years to create took them under 20 years to duplicate. They can sustain themselves now that they want to sell their goods and services to their own people instead of us.

Besides, the rest of the world hates our guts for creating the energy price surge by having a military conflict based on lies. To us it is just $3 gas but to people in other nations it has meant unemployment and going to sleep hungry. They can't wait to cut the dollar loose.

Paul E. Math said...

To dismiss the decline of the dollar as merely 'cyclical' is to completely misunderstand why the dollar has fallen so much: it is the supply and demand for the USD.

It's not just a cycle. It doesn't just go up and come down like the changing of the seasons or the daily rise and fall of the tide.

If the Fed continues to flood the market with dollars via low interest rate policy, if the federal government continues to run a huge defecit, if we continue to run a current account defecit buying more foreign goods and services than we sell (uh, oil?) then that increases the supply of dollars.

Demand for the dollar decreases as foreign governments begin to diversify into holding other currencies in their reserves.

Are you still with me?

Equilibrium price is the intersection of the supply curve and the demand curve. If the supply curve continues to move up and demand continues to move down, which they are both doing, then the exchange rate on the USD will continue to decline.

The dollar's slide is NOT over. The dollar may be dead but it's going to get even deader. Yeah, I know that's not a word, A-Rod.

Anonymous said...

CNBC had the typical Wall Street whores saying a turn around for the dollar is due. They used the word "mystery" as to when and WHY it would happen, only that it would. Also said European CBs are due to start cutting.

DXDDX was up over 2% today. Dollar Bear 2.5X fund.

I think Yoski states it better than I can.

Reponomics, could you care to give an explanation as to why the dollar might strengthen?? We are dropping our rates while others are raising. Also, we have exported such toxic waste to the rest of the world, that they are getting pretty much fed up with America. Look at the idiots out there around you, do you blame them. We have a much needed ass kicking coming our way.

Anonymous said...

Anonymous said...
At one point in 2002 $1US was worth $1.60 Canuck bucks. Now the two are equal, back to where it was in the 1970s.

This stuff is cyclical and the dollar will be strong again some day. Only immature and uneducated investors panic.

BTW how is that $800 gold from 1980 doing for y'all?

September 28, 2007 7:07 PM
.............

The Fed will keep lowering rates causing the dollar to fall more.

Anonymous said...

September 28, 2007 10:39 PM

You put it in silver. Lots of silver.

-MC

Anonymous said...

========

You bought gold at $400 and now it is at $750. You sell you pay tax on a 90% gain.
...................

You must really be a mush if you think I'm paying TAXES on a gold sale!

Anonymous said...

No seriously, where *do* you put your money when you've been asleep at the wheel and wake up just in time to see the headlights of an oncoming truck?

September 28, 2007 10:39 PM
...........

The problem is your wage is not increasing with everything around it. That is way things feel more expensive. It's called stagflation. To compund your problem with the truck coming at you, now imagine you just ran out of gas!

Anonymous said...

The best part is that nearly everyone involved in this ponzi scheme got burned, from the realtrolls to the brokebacks. From the speculators to the CDO investors. From the banks to Wall Street. Only a few who got in and out early made any money. Many of the flippers plowed their profits back into more RE speculation and lost it all back and then some. Now they are begging for a bailout like dogs beg for a bone. Too bad for them the government is broke and incompetent. Lowering the rates will only cause inflation of basic goods and more foreclosures. It will also result in higher interest rates.

edd said...

If you check the futures market,
you will see that a buck is now almost worth a bucket of jaksht,
and that in April it should be worth at least a cup of jaksht.

Please be clear on the terms of your future estimates on the usd.
However, we should all be
long on jaksht.

TM said...

"Don`t worry, it`s gonna go back up"...some poor b@st@rd in the Argentina freefall.

And it has.

TM said...

Get with it America. The dollar is dead and doesn't buy jack. Make it a coin and save some trees.

The US Mint tries mightily, but fails. Americans don't want coin dollars apparently (even though it would save taxpayers some money).

I guess people don't want their strippers looking they've dropped a load in their bikinis.

Anonymous said...

some clueless Anon said:

You bought gold at $400 and now it is at $750. You sell you pay tax on a 90% gain.

I bought a $300K house with $15K down and sold it for $700K. I paid no tax on a 2500% gain.

You were saying...

September 28, 2007 10:17 PM


Bzzzzt, but thanks for playing. You've never bought and sold bullion at a coin shop, have you? Take a wild guess how many 1099's are issued by coin shops....

Anonymous said...

" But that ship has sailed, you may want to think real hard about ways to play a strengthening dollar over the next few years...."

...and why do you think the dollar would be strengthening? I mean international investors are not exactly lining up to buy more toxic financial product spewing out of Wall Street, nor do we have much of anything of value to sell to the rest of the world to cover our imports (pharma & planes the only exception), hence the huge trade deficit. So again, why exactly do you think the dollar will be strengthening? Please explain.
=======================

O.K. You busted me, I'm just a gov't paid troll... The buck is toast; but damn my bosses don't want the major sh!t to hit the fan till after the election.

Anonymous said...

Richard Nixon pulls the plug on Bretton Woods system.

Well worth watching.

http://www.youtube.com/watch?v=iRzr1QU6K1o

Anonymous said...

No seriously, where *do* you put your money when you've been asleep at the wheel and wake up just in time to see the headlights of an oncoming truck?

September 28, 2007 10:39 PM

----------------------------------

Sorry, I was wrong. Silver and
natural gas, and some mining juniors
that haven't taken off yet.

-MC

Anonymous said...

"Finally, inflation seemed to bring prosperity...People were buying goods as fast as they obtained money; companies rushed to expand plants and turn money into fixed investment. Germany was actually envied for its "prosperity" by many foreigners."

http://tinyurl.com/3ctoja

A good read on the hazards of deficit spending/inflation with some hints on where people put their money.

Anonymous said...

turned off the nat gas in the house and they still get me for 12 bucks a month for service charges, up from 6 buck 2 years back, as i wait for things to turn around.....no inflation here...sarcasm.....

John S said...

China and India took a crash course from US on how to industrialize... They can sustain themselves now that they want to sell their goods and services to their own people instead of us.

They could... except they pay their own people 14 cents an hour. Can't see that population buying a half-trillion a year of consumer goods.

Laura said...

But that ship has sailed, you may want to think real hard about ways to play a strengthening dollar over the next few years....

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Agree. Anyone want to speculate when interest rates will go up?

Laura said...

"have any of you noticed that when you open a new account, the govt now asks lots of personal questions "for your security."


I have. I dont know about government, but Wamu sent me a letter saying they would close down my account if I didnt verify my drivers license number, my home & work phone too. My God, I did that when I opened the account!

Anonymous said...

"BIG DEAL.
.
.
THIS JUST MEANS WE EXPORT MORE.
.
.
IT IS GOOD FOR AMERICA.
"

Hey dumbshit, just what EXACTLY does the US export besides DEBT?

Our manufacturing is basically GONE to china, and Inida.


YOU are the the PROVEN EXAMPLE of the DUMBING DOWN OF THE USA.

You should be so proud.

snicker...

Anonymous said...

"Greg Swann now advising his clients (buyers) to make lowball offers on dozens of houses at a time"

He's ONLY trying to generate a comission for himself. He got da family ta feed.

snicker.