I don't follow politics or financial stuff, debt etc. I hear a lot of the fall of the usa is imminent, banking crisis just beginning etc. Any truth to it or depends what side you're on?
Is the US and the dollar finished?
- Thread starter dognutz
- Start date
I have no idea who is predicting the imminent fall of the U.S.
Gold bugs have been in anticipation of the crash of the USD.
But I don't think any respected gold advocates are expecting
that to happen any time soon. As a fan of precious metals myself
I too believe the USD is losing its value; but then so are pretty much
all other currencies. I'd advise people to allocate 5--10% of their
investment portfolio to physical bullion of silver and gold as
a hedge against negative real interest rate if erosion of their
saving by inflation is a concern.
Gold bugs have been in anticipation of the crash of the USD.
But I don't think any respected gold advocates are expecting
that to happen any time soon. As a fan of precious metals myself
I too believe the USD is losing its value; but then so are pretty much
all other currencies. I'd advise people to allocate 5--10% of their
investment portfolio to physical bullion of silver and gold as
a hedge against negative real interest rate if erosion of their
saving by inflation is a concern.
#1. There is no US banking crisis. There is a crisis with a few US banks that did stupid things…. But more specifically… some start up CEO’s that did stupid things. The market is supposed to weed them out.
#2. Gold bugs have correctly predicted 20 of the last 2 financial crisis. The just repeat the same shit over and over. I used to listen to it… then I realized it was a broken record.
#3. The last of the Boomers are retiring this decade. It was always going to be this decade…. And they are taking there money out of the markets, and making it safe for their retirement. That will make the cost of borrowing go up, as less money is available. That is not the sign of a “crisis”, (but it is inflationary). We will get through it. When the millennials hit their 50’s, the cost of borrowing will come down again.
#4. The US will not allow the the dollar to lose reserve status.
#5. Nobody wants Rubbles or Yuan. They are not stable
#6. Any other currency would have to be inflated as much as dollar to serve the planet like the dollar does. Then that nation would need to back it up militarily across the globe. China’s Navy is sort of formidable 200 miles from its coastline, but the vast majority of it can’t go more than 400 miles away from main land. They run into fuel problems. So no, they cannot back it.
#2. Gold bugs have correctly predicted 20 of the last 2 financial crisis. The just repeat the same shit over and over. I used to listen to it… then I realized it was a broken record.
#3. The last of the Boomers are retiring this decade. It was always going to be this decade…. And they are taking there money out of the markets, and making it safe for their retirement. That will make the cost of borrowing go up, as less money is available. That is not the sign of a “crisis”, (but it is inflationary). We will get through it. When the millennials hit their 50’s, the cost of borrowing will come down again.
#4. The US will not allow the the dollar to lose reserve status.
#5. Nobody wants Rubbles or Yuan. They are not stable
#6. Any other currency would have to be inflated as much as dollar to serve the planet like the dollar does. Then that nation would need to back it up militarily across the globe. China’s Navy is sort of formidable 200 miles from its coastline, but the vast majority of it can’t go more than 400 miles away from main land. They run into fuel problems. So no, they cannot back it.
#5. Nobody wants Rubbles or Yuan. They are not stable
What currency you expect India, China and other countries to buy
oil and other exports from post-war Russia with? If faced with
the risk of having your oversea assets confiscated by the U.S.
Saudi and Iran will also have to lighten up holdings of USD in
their foreign exchange reserves. I don't believe the USD is going
to lose its reserve status in the near future. Aside from a
small allocation of investment money to physical bullion
the only precaution I take against depreciation of the USD
is merely keeping exposure to foreign exchange risk of
my dividend stocks at a reasonable level.
What currency you expect India, China and other countries to buy
oil and other exports from post-war Russia with? If faced with
the risk of having your oversea assets confiscated by the U.S.
Saudi and Iran will also have to lighten up holdings of USD in
their foreign exchange reserves. I don't believe the USD is going
to lose its reserve status in the near future. Aside from a
small allocation of investment money to physical bullion
the only precaution I take against depreciation of the USD
is merely keeping exposure to foreign exchange risk of
my dividend stocks at a reasonable level.
You don't know what the hell you're talking about!!!!!! Just kidding, I get caught up in the fear mongering on tik tok. I saw a good video explaining the SVB thing. He said they had so much money but had nobody to lend to so they bought bonds at 2 per cent and rising rates was their demise.
I don't understand this debt ceiling thing though, how it can keep going up, I believe it's linked to gdp but I don't get that part.
I’m not claiming we’re on the best system. (Personally, I think it’s rigged!)…. But all these bar stool Gold Bugs who think their $500 pile of silver coins will get them through a financial system melt down are in for rude awakening.
Just imagine… the bank cards stop working at the gas stations and grocery stores. All of them. Next Tuesday at 10am…. Should go smooth I would imagine. People politely asking at the counter if the clerk could kindly make a call to see what the matter is??? (I can’t even type that with a straight face.)
You may get away with a couple hours of calm if the news is talking about an internet issue…. But if CNN and Fox are reporting banking collapses across the globe… and the system is just gone…. God help us. We don’t have an economic model for smoothly changing over from this to that. We don’t.
Even if we did… nobody is really trained on a smooth transition.
I read a good book “Swimming With Sharks… my journey into the world of banking”. A reporter interviewed 200 London bankers about their job and the 2008 meltdown. One guy called his wife and told her to take the kids and the guns and get the country house now! He thought it was over. Surprisingly…. Most bankers are isolated. They may spend their day finding out about the best Asian telecoms to invest in… and that’s all they know. The idea that someone is controlling everything is crazy.
USD is not losing its reserve status. It will
remain the global currency it has been into the
future. It is just losing its dominance.
I am no gold stock chaser but current situation is
compelling me to modify my investment strategy slightly.
I am seriously considering adding Barrick Gold to my
stock portfolio.
remain the global currency it has been into the
future. It is just losing its dominance.
I am no gold stock chaser but current situation is
compelling me to modify my investment strategy slightly.
I am seriously considering adding Barrick Gold to my
stock portfolio.
A Small Portion of Physical Silver May Save an Entire Portfolio-The 5% Solution
By Stan Szymanski At 8:47 A.M. on August 9, 2022 silver is trading at approximately $20.85. This shiny metal may be the only asset trading at a 60% discount to its 1980 high . On January 18, 1980, 42 years ago, silver finished the day at $49.45 (silver also hit $49.50 intraday on April 28, 2011)
www.encouragingangels.org
USD will remain the global currency for the foreseeable future. It is not going anywhere.
But that said over a period fo time I am sure there will be changes - meaning the US Dollar wont regain its position from the past. There will be multiple dominating currencies - I foresee Yuan and to a lesser degree the Rupee being used to trade.
But that said over a period fo time I am sure there will be changes - meaning the US Dollar wont regain its position from the past. There will be multiple dominating currencies - I foresee Yuan and to a lesser degree the Rupee being used to trade.
#5. Nobody wants Rubbles or Yuan. They are not stable
While it is true that political stability of a sovereign state is an important factor
there are other no less important factors in determination of trustworthiness of its
currency.
Imagine we were doing business in a world where business transactions
between countries were settled by bartering. Between China and the U.S.
which country do you think Russia would get more from bartering a barrel
of oil in exchange for an equivalent of goods generated by that amount
of oil. People of the U.S.or more precisely people in North America
to the north of Mexico are about the most gluttonous consumers of
gasoline in the world. Not even the upper middle class in more affluent Asian
countries like Japan and South Korea are nearly as wasteful of Earth's most
precious fuel like the Americans. As such you can bet that Russia can gain
cheaper goods and services from China in exchange for one barrel of crude
oil which in the U.S. would be mostly wasted away in unproductive activities.
The U.S.economy does have its strength. It's military industry produces
the most efficient killing machines and its post-secondary schools have
trained generation of first rate students. But much of the output of the U.S.
economy are either overpriced or simply not essential for the developing
world to raise their standard of living. Surely education in India is way
more economical in producing capable software programmer than the U.S.
The USD is the king of all currencies to this day because it is backed by nuclear
submarine warheads, aircraft carriers, state-of-the-art jet fighters as well as world's most advanced military technologies. In a world of cheap and abundant (labor and natural) resources the USD is understandably the world's choice of reserve currency.
But now we are entering the era when people from countries rich in human resources
are looking to the west in striving to attain a comparable living standard. Resources
rich countries are also looking to improve their standard of living as well by getting
more value out of selling fossil fuel, precious minerals and other commodities to manufacturing powerhouses in the developing world. Switching away from the USD
to local currencies is the way to ensure equitable distribution of world's wealth
and resources in the coming years.
While it is true that political stability of a sovereign state is an important factor
there are other no less important factors in determination of trustworthiness of its
currency.
Imagine we were doing business in a world where business transactions
between countries were settled by bartering. Between China and the U.S.
which country do you think Russia would get more from bartering a barrel
of oil in exchange for an equivalent of goods generated by that amount
of oil. People of the U.S.or more precisely people in North America
to the north of Mexico are about the most gluttonous consumers of
gasoline in the world. Not even the upper middle class in more affluent Asian
countries like Japan and South Korea are nearly as wasteful of Earth's most
precious fuel like the Americans. As such you can bet that Russia can gain
cheaper goods and services from China in exchange for one barrel of crude
oil which in the U.S. would be mostly wasted away in unproductive activities.
The U.S.economy does have its strength. It's military industry produces
the most efficient killing machines and its post-secondary schools have
trained generation of first rate students. But much of the output of the U.S.
economy are either overpriced or simply not essential for the developing
world to raise their standard of living. Surely education in India is way
more economical in producing capable software programmer than the U.S.
The USD is the king of all currencies to this day because it is backed by nuclear
submarine warheads, aircraft carriers, state-of-the-art jet fighters as well as world's most advanced military technologies. In a world of cheap and abundant (labor and natural) resources the USD is understandably the world's choice of reserve currency.
But now we are entering the era when people from countries rich in human resources
are looking to the west in striving to attain a comparable living standard. Resources
rich countries are also looking to improve their standard of living as well by getting
more value out of selling fossil fuel, precious minerals and other commodities to manufacturing powerhouses in the developing world. Switching away from the USD
to local currencies is the way to ensure equitable distribution of world's wealth
and resources in the coming years.
