What do you think about the USD is it going to sink?

[Duckinla]

A devaluation of the U.S. dollar is not necessarily either a good or bad thing. You can't discuss it in black and white terms. China purposely keeps their currency well below market value...is that a bad thing for China? Would they be a stronger country if their currency was stronger?

Debt is not necessarily a good or bad thing. It is all relative to current interest rates and future inflation rates. I hate seeing people talk about the huge debt level without talking about how incredibly low the interest is on that debt. A little knowledge is dangerous.
I have a huge debt level on my house...but at 5.5% interest, I am in no hurry to pay it off. If interest rates go to 8-9%, the lender will be the one who is sorry, not the borrower.

 

[3par]

all you need to do is make sure you have more dollars than the guy next to you and you will be fine.

that is why we invest in the domain names...:regular_smile:

 

[Chaiki]

Gold is real money.. everything else currency. You need to understand the difference or you are a sucker.

The US dollar has to go down.. probably 60-70% from here. You may feel like you are getting richer. Your house going up, stocks going up.. it is a game and you are really loosing because your currency is going to be worth much less in the years ahead. Blame the retiring baby-boom who want their social security checks and pensions. They will need everyt penny of those checks just to pay the rent or put gas in their tank. In the 70's one earner could put meals on the table pay for the house and two cars. Today both parents work longer hours and often only one car.

Part of the reason this is even discussed is due to the internet. You have hedgefunds and bear analysts openly talking about the hedonic adjustments to government inflation stats.. the ballooning money supply, the fact that the dollar's status as the settlement currency for oil is slipping away.. people listen to these comments and invest accordingly.

Domains are neat because they go up so quickly on a percentage basis but there will be a reckoning in this business too.

 

[WhoDatDog]

You should be on CNBC because I have no idea what you just said. You and Larry Kudlow should meet up and chat. The bottom line has always been that you just need to be a little bit sharper than the average idiot in the United States and you can live like a king. People who are clueless have roofs over their heads so it really isn't that hard.

 

[Duckinla]

I"ve never personally experienced a bad economy as an income-earning adult, so it's hard to imagine what it could be like.

I believe that currency values and economies move in long cycles. As a currency grows stronger, a nation will do more importing because it is cheaper than buying domestic made goods. Eventually this leads to trade deficits which lead to a weakening currency.
The weaker currency causes the imported products to become more expensive than those made domestically. So the population starts buying domestic again which reduces the trade deficits and starts the cycle over. These cycles can be maybe 10-15 years long. This is a bit oversimplified but we are definitely coming out of a pretty long period of strong US dollar and probably heading for a long period of weaker US dollar. It will be good for those who produce in the U.S., bad for those who import to the U.S.

 

[QuantumBeam]

Now we're in the beginning of the end-game for the USD, and it ain't going to pretty.

If the U.S. continues to print more & more cash on a daily basis the dollar becomes weaker & weaker as every minute goes by. The more money in circulation the faster the dollar becomes of less value. It is costing them more to make pennies & nickels than what the coins actually are worth because of the rising prices.
Over the last 5 yrs 85% of home mortgages have been either ARM's or "interest only" loans. All the refi's have been people going out and using there houses as an ATM machine to purchase whatever they wanted. When rates continue to rise, so do all those ARM's & interest only loan payments. The rates will also effect the rise in monthly credit card debt statements.
As the so called housing "bubble" begins to deflate & rates continue to rise, the number of home's on the market will dramatically increase to record levels thus driving prices down & homes depreciating in value in which in return people will end up owing more on there homes than what they are actually worth.
Can you say 1929 all over again ?

 

[Duckinla]

Everyone who is buying Gold is making a mistake. You should be buying Bullets and Batteries. That will be the best form of currency in BarterTown and Thunderdome.

 

[NavySeals91]

:huh: Isn't it the Fed's job to control the money supply and influence exchange rates? How did Bush get pulled into this...

It is.

 

[Momentum]

Well the dollar has already gone down considerably this year, so you may be a little behind the curve here. Unless something really drastic happens, I wouldn't expect the dollar to lose more than another 5% or so. The Fed has been raising interest rates and will probably not be finished raising rates until inflation fears are abated. That is one factor that is helping to retain the value of the dollar. Of course the large debt and double deficits will keep pressuring the dollar down but the question is what currency are you going to buy? Most of the developed countries economies are very much dialed into the US economy. Everyone says that Asia is the next big booming economy but Japan's growth has been flattening out and China's currency is pegged to the dollar and controlled by the government to help their exports. Swiss francs and the euro may be the safest way to make a long term hedge against losses to the dollar. Gold has also become a very popular hedge but is a little too high for my tase. Good luck guys! Don't lose your shirts!

 

[italiandragon]

Just to let you know that the Australian dollar performed about 50 % against USD since 2001.

USA is just time to change President.....and pray that there is not another one of the Bush family....otherwise another war...

 

[denny007]

The Chinese have the largest USD reserves in the world 768 Billion , they've said recently they want to diversify this into other currency's

They already started it about 2 years ago, they convert it also into raw materials, thats why the prices of precious metals is so high...my theory...

 

[labrocca]

Gold was a great buy 2-3 years ago. Today it's not so hot imho. People who are screaming..."go buy gold" more than likely have some and want you to buy it up more.

The gloom and doom is nonsense.

One thing I always find amusing is people talking about the American debt..let me ask. Who do we owe this money to? What happens if we can't pay? NOTHING...that's what. We are the USA. #1 in the world for power. Yeah that's arrogant but it's true. It would be cheaper for us to go to war and kick some ass than to pay the debt. It's not like someone is gonna come and break our legs if we don't pay. Debt on that level is just bullshit. Someone in a bank changes labels in the gold reserve...big whoop. It's an illusion that paper wealth has any value. It's a serious ponzi scheme scam. I laugh at money. It's so cute and benign yet powerful. It's just a piece of paper. What's really funny is that's it's less and less paper and now just numbers in a computer.

I have "money" in my paypal. I can transfer it to someone else. Or they can send me some money. I can take the debit card and go buy stuff. I never even have to look at a paper bill. It's all just numbers now and the link of money to real value is 100% an illusion that people have gotten used to.

Also peoples "credit score" is seriously something I can go on and on about but I won't at this time.

 

[QuantumBeam]

One thing I always find amusing is people talking about the American debt..let me ask. Who do we owe this money to? What happens if we can't pay? NOTHING...that's what.

let's check this quote out in less than one yr from now. Who do we owe this money to ?
We owe this "credit debt" to the same country that is buying up all these securities from all these refi, interest only, ARM loans that the first time home owner or speculative real estate investor will never be able to pay. As interest rates continue to rise to try and recoup some of this money, so do the people's payments who obtained these loans. If you think interest rates have been nudging slightly up in the last few months, you have'nt seen anything yet.......

 

[Momentum]

Considering that the US is paying over $300 billion per year just to pay the interest on the national debt, I would say that it does matter.

 

[italiandragon]

wait another few years and by 2020 China will start to knock on the US embassy to pay that debt

Usa is not going to be number 1 in the world forever.

 

[Spinlock]

Come Quickly, Lord Jesus.

 

[Tedgeman]

Amen! to that Spinlock

 

[italiandragon]

yeah yeah have fun, we`ll see, in the mean time if you have a look at their population you may realize than 1 billion of people may develop more resources of 300 millions of people....just give them time....

 

[QuantumBeam]

I don't believe we will have to wait until the yr 2020, the only way to recoup some of the debt is to raise interest rates, which they have already began doing. Two-three years from now when everyones home has "depreciated" in value by 30-35% and interest rates will be over 9% then we will finally wake up.

 

[Coolalex]

How to fix the problem: Switch currency in all countries to F$