It was just all so shocking (not), in an election year, when we have wildly unpopular incumbents:
* To see the PPT-run Fed cut rates a shocking and historic 3/4 of a point minutes before the stock market was about to take a dump
* To see the wildly unpopular President and an all-too-eager congress ready over $150,000,000,000 in checks to be sent out to voters, to arrive before the Summer conventions
* To see the candidates run around the states offering billions and billions in new spending in a desperate pandering, with no way to pay for it
* To see politicians offering no solution for the social security/medicare/medicaid timebomb, and $52 trillion US debt
The government can keep the ponzi scheme going for a bit more. Housing is toast, there's nothing they can do there. But the rest of the house of cards can remain standing as long as foreigners keep lending us money, and accepting US dollars for their natural resources, goods and services.
But when that stops, and one day it will stop, then we've got ourselves a bit of a problem.
Until then, get out your parachutes, get ready for 1970's style stagflation, and enjoy the brief Fed Party. Try to figure out where the next Fed-induced, moral-hazard-be-damned, cheap money bubble will be. And get ready for the gut-wrenching meltdown so predictably delayed today by Helicopter Ben and the PPT.
January 22, 2008
On election year pandering, moral hazard, Helicopter Ben, cheap money and stagflation
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63 comments:
So you're saying that you don't like Reaganomics anymore? But you're all sucking Reagan's d!ck and now you don't like 7 years of his Reaganomics, applied for the monkey you voted into the White House TWICE?
Funny, the same fools who voted for Bush/Cheney twice, which created this entire financial mess and global chaos, are now telling us who to vote for.
No, but no thanks, you Republican sheep have as much credibility as Mike Norman. Now go kiss Karl Rove's naked picture.
I wish harm on no one, but since I’m in a mostly-cash position, I wouldn’t mind higher rates (as long as that carries over to the interest I’m paid by my banks)
All the banker stocks are up big time today. What a rig! PPT is burning your Republican dollars like crazy today to bailout the crooks on Wall Street. Another proof that GOP loves socialism. The socialism of finance and government contracts in phony wars.
So if there will be stagflation or inflation of any kind, why is owning a house now bad? During the 70s house prices soared because of inflation. Homes went from$25,000 to $75,000 in a short period in San Jose and my parent's house started looking awful cheap, and of course now it is a million....so how is it bad to own? And what is a fair price per sq ft to buy? Is anything under $100 a sq ft for a nicely appointed house unfair or a "bubble"? No one ever answers that question here. What is fair in different areas? What is fair in Phoenix, San Jose, San Diego, London for that matter?
I own two luxery homes...both over 3,000 sq ft, all the upgrades, large lots, good neighborhoods, one in Phoenix and one in Austin....one I paid $103 a sq ft (Austin) and the other $90 a sq ft. Is that bad? I can't rent a small place in either city for the cost of owning....and in my tax bracket, need deductions...and as far as the Fed passing out checks...a lot of us won't get one because our earnings are over $110,000 per household...we just get to continue to pay for others.
The world didn't end during the depression of 1929-1940, Japan didn't end from their troubles that continue since 1990, the world didn't end with two world wars....Zimbabwee hasn't ended with 3,000% inflation and 90% unemployement, Argentina didn't end with default..
Gold? Down...if you bought, you lost. Stocks...down, you loose again....Homes...down...you loose again...inflation...you loose again...currency flux...you loose again....the rich will always skim the cream by causing prices to rise and fall always at the middle classes expense.
You need a place to live. You have to eat. You need energy, clothes. So what do you do? You take care of your needs and don't worry about it cause you can't change it. People/businesses have to make money....what is fair? What is the true, inflation adjusted cost of building a home,? What is not a bubble....in any market...everything has a set intrinsic value...others may pay more for intangibles...like where they live but what is fair? If you buy a house you can't afford, you loose it.
The meltdown in Europe is coming...and in Asia. My friend in HK says it isn't uncommon to spend a million on a 600 sq ft apartment...talke bubble? Tokyo is still one of the most expensive cities...post deflation/real estate bust...London...what are those prices now when last year people paid upwards of $8,000 a sqft before the value of the dollar went down? And people here cry when they pay $200?
On inflation/deflation, what I see ahead is investment-class asset price deflation and consumable goods and services inflation
But I'll be the first to say that things are unclear on inflation/deflation, with so many conflicting factors at play
Smart people chime in
Dust off that copy of "Atlas Shrugged" and start reading again. It's so accurate it's terrifying.
I wish people would understand what Reaganomics was. It is not what is happening today.
Reaganomics was the cutting of spending in a major way including the cutting of taxes. And it included much higher interest rates. Reaganomics was hard because money was worth something during that time.
What is happening today is called Kenyensian economics. NOT Austrian Economics. The problem with Kenyensian economics is that you need to spend during hard times, but save during good times. Yet again and again and again governments don't save!
Keith, I told you over and over again that foreigners will continue to lend us money and they will continue to accept depreciated dollars for their goods because we are the economic engine of the world. Where else will foreigners invest their money? America is the largest economy in the world and if we go down, then the rest of the world goes down with us. So these stupid foreigners (and they are stupid for lending us all of this money because they won't get it back) have no option but to continue to lend us money.
Foxwoodlief - the best post here in a long time. Kudos to you for breaking with the daily bickering and Armageddon-calling that took over this place!
I like what anomymous said above. The republicans screwed us all and now they want to tell us who to vote for.
Screw you. I rather vote for the corner butcher than vote for you. The only Republican thats worth it, NOT REAL REPUBLICAN, is Ron Paul and he is not wining. I will vote for a camels ass before I vote for any other Republican.
Keith,
My opinion is that we are now in Deflation mode. It makes perfect sense. If you look at the numbers, the fed is actually taking dollars off the market. Inflation, I bet, will be lower than expected for some time to come.
If this is true, than investing in shorts, puts, etc will make you big dollars. CDs are also a good choice. Treasuries are also a good choice here. I prefer shorts.
Keith,
As for you comment above. I understand where you are coming from. But how can companies raise prices when there is no consumers to sell to? They will be forced to lower consumer prices whether they like it or not. As unemployment rises, consumer prices will drop like a rock.
Also, dont expect the fed to bail out any banks.
>> But the rest of the house of cards can remain standing as long as foreigners keep lending us money, and accepting US dollars for their natural resources, goods and services.
Note to all you foreigners: STOP lending us money, and STOP accepting US dollars for your natural resources, goods and services.
Thank you. The management.
I predict a bubble in beanie babies.
The two candidates will be Hillary Clinton and John McCain. Hillary wins along with Democratic majorities in both houses of Congress.
Accept it and quit wasting time fantasizing about your hopes. Play ball or spend the next 8 years as you spent the last 8, twisting yourselves into pretzels in denial.
Take one hand away from between your legs, take your other hand off the keyboard and grow up you little pathetic snot-sniveling losers. You all spend more time complaining, bitching, and posting inane information than producing anything of value.
To find out what is really wrong with the direction of this country,
LOOK IN THE MIRROR!
All those nouveau riche mortgage debtors and realty whores better start sucking up to their Mexican gardeners and housemaids now. In a couple of years you'll be the ones cleaning the houses and digging up weeds when the nouveau riche chicanos and wahakans come in and buy up your houses with pesos.
That diploma from Nouveau Riche University ain't gonna help you now:
http://www.nruniversity.com/
Hey umm shit mouth..Reagan is dead.. don't they have books or TV in Bellevue?
Obviously the Med Nurse skipped your room this morning.
"Nurse to room 7 please, we have another Anonopuss playing hand ball with himself"....again.
Funny, the same fools who voted for Bush/Cheney twice, which created this entire financial mess and global chaos, are now telling us who to vote for.
You liberal fools don't understand. Its over, all done, the socialist neo-cons who supported wall street are done. The socialist liberals buying voters (illegals and anyone else who likes to spend other peoples money) are done. Both sides have cleaned America out, there's nothing left. Yet you liberals some how try to shoehorn conservative working Americans into Bushes or Clintons boots. Bush was in 8 years, he screwed us now its Hitlerys turn. 100,000,000 million more empty bellies to vote for Hitlery and her socialist cronies and enslave the American people. Did you study the shamnesty bill. Do you really believe hard working people will sell their children into slavery because a bunch of wacked out liberal retards run around yelling its our turn. The far right neo-cons and the wacked out socialist left wingers are done. You try to tell working Americans your going to tax them to feed, clothe and house the 30,000,000 illegals that are here now and all their realatives tomorrow at a time of great suffering. All is as god wills it. Neo conservatsism and socialism will die so that we may live.
GOLD TO DA MOON ALICE!!!!!!!!!
Stupid bitch on CNN says don't sell your stocks, buy more stocks, and take out a HELOC in case you lose your job. My head is spinning.
http://tinyurl.com/2adbey
She obviously hasn't see this chart:
http://tinyurl.com/2axj5f
We need a Clinton back in office. The dotcom ponzi scheme was a good thing
Free money!
That'll fix everything!
Another proof that GOP loves socialism. The socialism of finance and government contracts in phony wars.
You DemoCraps are just mad that someone else is getting welfare besides your lazy worthless selves. If there's lifetime welfare for your lazy inbred New Orleans type welfare queens, then why not welfare for banks?
Would you damn old hippies just die off already. I'm sick of your whining.
Uh oh keith, you are pissing off the raving leftards by criticizing their welfare programs.
Keith, it's deflation all the way.
Where was the money BEFORE it was put into the loan for your home? Think about this several times, it took me a while to get my head around it.
The money did not exist! This is the essence of the fractional reserve banking system. Banks take in your deposit of $100 and can loan up to $1000 with it (or more, now that requirements are much less than 10% for a variety of lack-of-regulation-induced reasons). The other $900 simply does not exist - anywhere. You can package and sell it with other loans, but the $900 doesn't sit in a bank somewhere.. buttons were pushed and voila, you have a home loan. All is well when the market goes up.
When that home is foreclosed / short sold / etc.. what happened to that money which was created from thin air to finance your home? It was DESTROYED! Of course, money was paid to various folk along the way, who spent it -- yet, what was the value created to offset that spending? NOTHING!!!
Now multiply this scenario by millions and you get the current economy.
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Why are prices going up in a deflationary scenario? Same amount of goods with less money available... prices shoot up. Monetary deflation, check.. but cost of consumables is increasing.
Im going to party like its 1999 - oh wait....
But I'll be the first to say that things are unclear on inflation/deflation, with so many conflicting factors at play
Smart people chime in
Smart people, that's me. They will sacrifice the dollar on the altar of the bankers. Many FBs will be toast, but they will fight to keep the consumer alive. It is a rerun of the 70s, to a tee.
http://tinyurl.com/2ryv5h
HAHAHAHAHA,, SUUZANNE!
The defendant in the Ummel case is Mike Little, a veteran agent with ReMax Associates. He will argue that Marty Ummel, who brought the case with her husband, Vernon, is trying to shift the blame for the couple's own failures of research and due diligence.
"They simply didn't do what is expected of a knowledgeable, sophisticated buyer, and are now looking for someone other than themselves to take responsibility," Roger Holtsclaw, an agent who was hired by Little as an expert witness, said in a court deposition.
http://tinyurl.com/2ryv5h
The bubble is now pushed fully into commodities and energy. Get ready for $120-150 for a barrel of oil, $15 for a bushel of wheat. Great, I love stagflation...
Rationalizing owning relastate as an investment at this time. Uoch very ouch. I think I will buy a 60 foot boat and put it in my back yard. Who knows we could get a flood and I could rent it out. I live in the desert. I am never happy about being caught in a rapidly depreciating asset class. I won't even ask about leverage.
foxwoodleif said:
"Gold? Down...if you bought, you lost. Stocks...down, you loose again....Homes...down...you loose again...inflation...you loose again...currency flux...you loose again....the rich will always skim the cream by causing prices to rise and fall always at the middle classes expense."
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People, for the frickin last time, it is "lose" not "loose".
Got it? Good!
Foxwoodleith, I cannot see how inflation would apply to home prices this time around.
We are not experiencing income inflation so homes remain unaffordable. The overnight rate may have been dropped but investors will still have much higher qualifying criteria so you still have much lower demand. And you know what happens to equilibrium price when demand falls.
The fed desperately needs a bubble somewhere to keep this great ponzi scheme going and perhaps one will inflate somewhere. But it won't be in housing.
foxwoodlief said...
So if there will be stagflation or inflation of any kind, why is owning a house now bad? During the 70s house prices soared because of inflation. Homes went from$25,000 to $75,000
Gold? Down...
So when your parents bought this house, were prices 75% lower 4 years earlier like they are today?
Oh and gold is back up again.
The Fed has saved the day again. You cannot stop the power of the Fed.
Anonymous said...
"Keith, I told you over and over again..."
And Keith said:
Anyone who posts anything on HP as Anonymous has an opinion that doesn't matter. All we hear is "blah blah blah"
If you want to matter, and have an opinion that counts, stop being so f*cking lazy, register a user name, or failing that, take the 1/2 of a second and click "nickname", type anything in the field (mickeymouse2), and THEN publish your opinion
Anon's are gutless, lazy and unimportant. Take 1 second and matter.
Who cares!!! My credit card limit just got upped to 32K!!! My house is worth 800k!!! I just need to refinance and its all free money anyway! Where does it say I have to pay it back? I will just sue my card and mortgage company cause i couldnt read the fine print!
The Great Depression? Take Prozac!Dow 1billion!!! YEAH!
SerpentMage said...
...
Reaganomics was the cutting of spending in a major way including the cutting of taxes.
...
-----------------------
FALSE. The federal budget deficit balooned under the senile Gipper, giving us a multi-trillion dollar national debt for the first time. Also, the taxes extorted from the middle class actually went UP (WAY up if you include the Social Security racket). The Gipper just cut taxes for the rich and the super rich.
SerpentMage said...
...
And it included much higher interest rates.
...
----------------
Volcker (a Carter appointee) did the high interest rates. The Gipper later appointed Alan "Dr. Bubbles" Greenscam.
I just found this site and am a neophyte, to say the least, in all this but have enjoyed the discussion. Give me some time and I will come up with some assine questions for everyone to explain to me. Seriously, enjoy the site and think I'm actually learning something. Go figure.
Anonymous said...
Keith, I told you over and over again that foreigners will continue to lend us money and they will continue to accept depreciated dollars for their goods because we are the economic engine of the world. Where else will foreigners invest their money? America is the largest economy in the world and if we go down, then the rest of the world goes down with us. So these stupid foreigners (and they are stupid for lending us all of this money because they won't get it back) have no option but to continue to lend us money.
January 22, 2008 7:14 PM
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What happens if the foreign countries just decide to give the money to their own citizens to spend?
On inflation/deflation, what I see ahead is investment-class asset price deflation and consumable goods and services inflation
But I'll be the first to say that things are unclear on inflation/deflation, with so many conflicting factors at play
Smart people chime in
I make no claim to being smart, but until we see WAGE inflation, as opposed to price inflation, taking on huge amounts of debt doesn't sound prudent at this juncture.
There is no moral hazard as banking has no moral code.
I must say I don't think this is the end of the banking system in America or the dollar or anything else. The fractional reserve system in place can only be compared next to governments and god as far as earning potential for those in charge. I actually rank the banks above governments but a step below god. Governments can be changed via votes or thru revolution, but the banks and god are harder to change. The only reason banks aren't higher in earnings potential then god is the god group can suddenly turn on the banks and say "Kill the bankers." The bankers can't turn on the religous nuts in the same way. Of the three I like government best as they occaisionally do things like create roadways and provide armies whereas god and banks take something from their followers then give nothing or very little back while telling the followers they are much better off for giving.
In a few weeks I'm sure the opportunities for everyone to give to the banks will be increased
Keith,
There are many different bearish views -- for simplicity, let's call them "Schiff" versus "Roubini."
"Schiff" says US inflation/falling dollar/US economy will be the big problems: foreign equities/gold are king, cash is worthless.
"Roubini" says that the US-led recession will be the big problem and the corresponding contraction will be deflationary: cash will be king, foreign equities and commodities will all tank.
The events of this month all point to Roubini being right, and Schiff being wrong. No one knows the future, and that could change, but here's NR's argument:
So short of such a clear stagflationary shock occurring should we worry about stagflation-lite and the risks of a rising inflation rate at the time when the US spins into a recession and the global economy slows down following the US hard landing?
The answer to this question is a clear no for the following reason: unlike a true negative supply side shock – that reduces growth while increasing inflation - a US recession followed by a global economic slowdown is a negative demand shock that has the effect of reducing US and global growth while at the same time reducing US and global inflationary pressures. Specifically such a negative demand shock will reduce inflation and across the world because of a variety of channels.
You used to say, following the Manias book, that cash will be king. We can't have it both ways: either the Fed's cuts will destroy the dollar, or cash will be king, as Manias promises us. Getting this right will be very, very important. Of course, one can always pay the price to hedge.
We're really enjoying seeing you trying to put blame on each other. Soon you and your dollar will all be irrelevant.
Regards,
All Non-Americans.
What happens if the foreign countries just decide to give the money to their own citizens to spend?
It's exactly what Schiff has in the book. This scenario is coming closer to reality as China will start spending internally. He said that there'd be a temporary rally, too.
My take is that no matter what, the US still needs 3/4 of its consumers spending heavily to carry the GDP, as well as another bubble. However, we ran out of bubbles and American consumers are broke.
The Four Horseman:
The Dollar Crisis
Climate Change
Peak Oil
Islamofacism
They're all happening, but few recognize them. In the next few years they're all get worse. Hang on world! The people to be hit the hardest are the poor underclass realying on the largesee of the US government. Teach you kids now: to work, to read, to save, to get by with less.
Be ready to protect whats yours.
Watch for skyrocketing crime (esecially home invasions) and a general feeling of unrest,probably for decades, possibly for good.
You used to say, following the Manias book, that cash will be king. We can't have it both ways: either the Fed's cuts will destroy the dollar, or cash will be king, as Manias promises us. Getting this right will be very, very important. Of course, one can always pay the price to hedge.
The Fed's cuts won't destroy the dollar. In the 1990s, the Japanese cut rates to zero but that didn't destroy the yen. In fact, the yen hit its strongest point ever.
The drop in the dollar today was a dead-cat bounce caused by the 3/4-point rate cut. Stocks WILL head down again, and the dollar will head up, with the yen heading way up.
It's exactly what Schiff has in the book. This scenario is coming closer to reality as China will start spending internally. He said that there'd be a temporary rally, too.
Ok Chinas got a trillion dollers, how long does that keep their economy going when the US isn't buying.
i love you dumb fucks...inflation is coming with housing prices falling
We're a nation of over 300 million people (I still have a hard time with that), and yet most of us want to 'act' like we're still 13 small colonies with less than a million people strung along the East coast.
By the measure of recorded human history, the United States is just a blink of the eye. Not much more than an experiment in self government. Capitalism, as we know it and many want to practice it, is not much older than our country. The notion of a 'free' people one could argue didn't arrive until the 1960s.
In case you haven't noticed, our country is and always has been an experiment in the making. In that regard, we're like no other country. Every decade America has changed. Our political and economic systems guarantee it. The beautiful, ugly, original and profane all rolled into one.
What's happening now-we've been here before. We're not going to die (at least most of us), but we are going to change. The question is when and how?
It will be the end of the world for some people, but the rest of us will have to carry on to try and figure out how to deal with a collapsing economy with 300+ million people to feed and all of the other nuclear nightmare scenarios induced by energy depletion, climate change and other unthinkables.
Folks, even though we are a comparatively young nation, at some point we've got to grow up. At some point we've got to put down the toys of childhood and accept the adult notion that "you can't get something for nothing". As the 3rd largest country on the planet, maybe we can accept the fact that 'small' government is impossible for a country of this size. That no society can remain civil for long if government AND private enterprise are not held accountable for their actions.
the socialists are spewing the same old bullshit with the kill the rich idiocies. Ask yourselves a couple of simple questions.
1. Have you ever worked for a poor person?
2. Have you ever known anyone who has worked for a poor person?
3. Have you ever known a poor person to create a job?
Answer to all is of course a big NO.
The "rich" are the only ons who pay taxes. 10% of Americans pay 80% of all taxes.
Now do me a favor and go swallow a gun already. You have been taking up air for too long.
lady di said:
People, for the frickin last time, it is "lose" not "loose".
Got it? Good!
January 22, 2008 8:52 PM
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Give it up Di. This blog is populated by 10th grade dropouts. You are wasting your time.
Now if you could somehow incorporate tinfoil hats into your lesson....
You know, thanks to that damn picture of John Travolta I've got that song in my head:
"That's the way, uhuh uhuh, I LIKE IT, uhuh, uhuh..."
Dammit Keith!
FALSE. The federal budget deficit balooned under the senile Gipper, giving us a multi-trillion dollar national debt for the first time. Also, the taxes extorted from the middle class actually went UP (WAY up if you include the Social Security racket). The Gipper just cut taxes for the rich and the super rich.
January 22, 2008 9:28 PM
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Dumbfuck,
Who was running congress in the 80s? Oh yea DemoCRAPS. And who writes spending and tax bills? Oh yeah congress does.
Put 2 and 2 together and you'll get it eventually.
Even your boy Barrack Hussein Obama praised Reagan. Only the most far, far, far left idiots out there can't see what a great man he was.
Well the far far farleft and the lazy/stupid. In other words the typical HPer, working at McDonald's and living in a trailer.
Iceman says,
We have already had hyperinflation in housing prices and stock prices!!!
This fake economy based on credit expansion, bloated the corporations bottom lines. Now the chickens will come home to roost and corporate profits will take a huge hit.
We are now in the process of asset deflation. The smart money will wait for the smoke to clear and scoop up real estate and stocks for pennies on the dollar. This downtrend will be a long drawn out process but will be an ideal situation for true investors.
The global reaction shows that the U.S. is the monetary leader but that is not saying much at all. The dollar will get pummeled but will survive. This is a transition
period which will probably be 10 years long. In the end, the Yen or other asian united currency will probably assume the global leadership role.
In the meantime, the american consumer is the world driving force yet it is debt driven. Europe is probably in a worse state and the asian, Indian, and Brazilian economies are not mature enough to carry the whole world on its shoulders. Their immaturity is obvious and that is also why you have a global sell off. They can not live without the U.S. and Europe and will feel severe pain.
Global deflation ensues. The baby boomer generation of the U.S. and Europe is the deathblow which will drag us through the mud. This was going to happen regardless of other circumstances. Look to Japan from a demographics standpoint. Their boomer generation was older than ours, thats why their deflation started in the late eighties.
CASH IS KING!!!!!
DEFLATION... DEFLATION...DEFLATION.
ICEMAN
The Four Horseman:
The Dollar Crisis
Climate Change
Peak Oil
Islamofascism
What? No man in a cave told NORAD to stand down. Its called Amerofascism , we have meddled in the ME for 50 years for oil.
Benito Mussolini knew a thing or two about fascism and he said it best. "Fascism should more rightly be called corporatism, because it is the joining of government and corporation."
Amerofascism
Reaganomics was the cutting of spending in a major way including the cutting of taxes.
Reaganomics was otherwise known as lying and saying you're going to cut spending but you don't and put a huge deficit on the US people, hollow out the manufacturing economy, and the cause a ginormous S&L bubble due to ideological deregulation and stick that on the people's debt tab.
Keynesian economics, at least as it actually is supposed to be and not the pathetic parody thereof spewed by right wing blogosphere, has significant theoretical and empirical backing.
The Fed's cuts won't destroy the dollar. In the 1990s, the Japanese cut rates to zero but that didn't destroy the yen. In fact, the yen hit its strongest point ever.
That's because Japan still manufactured and exported high-value goods like a, well, Japanese motherfucking workaholic genius, slaving away to pay off their 40 years mortgage on their 400 sq foot apartment.
And yes, it did keep the yen down versus what it should ahve been.
What does the USA make? Brittneys and fat asses.
Hey Foxwoodlief,
1 Hong Kong Dollar (HKD) is ~0.128 (USD). Is one million for a Hong Kong apartment in USD or HKD?
One million (HKD) ~ 128000 (USD)
By "spend" do you mean buy or rent?
Condos in Canada, on the sprawling prairies, (not tiny, water logged Hong Kong) can be bought for about the same price.
I rent a 6400 (CAD) per year apartment (one bedroom) and love it. My goal in life is not to pay off a house but to explore the world.
But hey, that's just me.
Cheers
The "rich" are the only ons who pay taxes. 10% of Americans pay 80% of all taxes.
Baloney. The wealthy pays less tax than anyone else. Once again: IT'S NOT ABOUT THE TOTAL AMOUNT OT TAXES YOU PAY, IT'S ABOUT THE EFFECTIVE TAX RATE.
I don't believe that dumb Republicans will ever understand the concept of Effective Tax Rate. Go take a basic accounting class or buy a book, donkey.
Schiff" says US inflation/falling dollar/US economy will be the big problems: foreign equities/gold are king, cash is worthless.
Schiff states that the dollar will be worthless, but you should hedge it with investments in other currencies, such as investing in utilities in Canada, which pay good dividend and offer a more stable currency. Gold, as far as I'm concerned, it's still king. So much so that China became the number 1 producer of gold in the world, while the US sticks to fiat currency.
Schiff has been right, so far.
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