Notice how the lib media is spinning the looming govt shutdown?

[Dr.Who]

I could agree that would not be a positive development, and I suppose I would call it a collapse....but it would also be a big money making opportunity.

Every change is a money making opportunity for someone. Usually not the poor who don't understand what is going on.

What's your plan.

 

[Hobo1]

Every change is a money making opportunity for someone. Usually not the poor who don't understand what is going on.

What's your plan.

I think the critical element is to get your cash money out of dollars. Perhaps putting money into some other foreign currency that is not likely to be impacted by a falling dollar. You might think that all countries are impacted by the dollar, that may true, but only temporarily. Of course the Euro is likely to be shaken, and many people have already fled to the Yen, so it seems overvalued.

One country that I am familiar with is Indonesia. It is an Asian country rich in natural resources, and pretty much ignored by the big bankers of the Western world. It does not rely heavily on exporting to Western countries. The economy is quite small, but stable ... simply based on internal consumption and export of raw materials to other Asian countries. Many of the citizens are very poor and unemployment is high. However, the government doesn't have social programs like Medicare, Social Security, or unemployment benefits either as a drain on their budgets.

I am sure there are many similar countries that you don't read about in the business news. Yet, they have independently stable economies, not heavily dependent on foreign exports (eg. oil). Thus, they are not dependent on the value of the dollar. Each of these countries have their own stock exchange where local companies can be traded. If you get clever, you can open a local bank account where they will keep your money either in local currency or in US dollars. Plus you can wire money back and forth between foreign banks and US banks easily and quickly.

Other better known countries that do a good job of managing their debt and economy include South Korea and Singapore. However, both of these Asian countries have a stronger dependence on the dollar.

I am in no way a financial expert. However, I have traveled the world extensively and am often surprised to see well-managed, small economy countries that remain totally out of the view of many investment advisers. Everyone seems to look at big economies like China, Japan and India.

 

[TruthSeeker]

Look at the bright side. For those of you who still have faith in paper and ink promises (my definition of fiat currency), at worst you'll have an extra supply of toilet paper.

Hobo, your gold graph reminds me of the mistake that a lot of people make in the world of investing. Chasing trends.

The secret to investing wisely is to do the research and let the trends chase you.

 

[Hobo1]

Hobo, your gold graph reminds me of the mistake that a lot of people make in the world of investing. Chasing trends.

The secret to investing wisely is to do the research and let the trends chase you.

There are some investments where research will allow you to make a wise decision. Other investments, such as gold, many stocks, and currencies, suffer from non-researchable factors. The only thing that seems to drive gold seems to be the principle of self-fulfilling prophecy. That is, a prediction that directly or indirectly causes itself to become true, by the very terms of the prophecy itself, due to positive feedback between belief and behavior. This can work in both directions.

All we need now is for some respected talking head to say that gold is over-bought and the price is too high. This mere prediction could cause gold to suddenly drop.

I just don't see any fundamental reason why gold is properly price at $1500 per oz. vs. half that or double that price. It has no underlying, intrinsic value. It just jumps around rather capriciously. Certainly doesn't seem to be a safe place to put one's money if a crisis in the US dollar is imminent (which I believe is true for some very solid reasons).

Is there a similar point in history where gold has really been a "safe haven" at times when the value of the dollar fell? I guess during Jimmy Carter's presidency if you had your timing right.

 

[BigRob]

Every change is a money making opportunity for someone. Usually not the poor who don't understand what is going on.

What's your plan.

Well, most people should be invested overseas as well..the collapse of the dollar does not mean the collapse of the world, and if timed correctly, you will be able to trade for dollars for next to nothing or use foreign currency.

In Germany for example, their currency was worthless basically, but if you had American dollars (even just a few) you could do a ton.

 

[TruthSeeker]

There are some investments where research will allow you to make a wise decision. Other investments, such as gold, many stocks, and currencies, suffer from non-researchable factors. The only thing that seems to drive gold seems to be the principle of self-fulfilling prophecy. That is, a prediction that directly or indirectly causes itself to become true, by the very terms of the prophecy itself, due to positive feedback between belief and behavior. This can work in both directions.

All we need now is for some respected talking head to say that gold is over-bought and the price is too high. This mere prediction could cause gold to suddenly drop.

I just don't see any fundamental reason why gold is properly price at $1500 per oz. vs. half that or double that price. It has no underlying, intrinsic value. It just jumps around rather capriciously. Certainly doesn't seem to be a safe place to put one's money if a crisis in the US dollar is imminent (which I believe is true for some very solid reasons).

Is there a similar point in history where gold has really been a "safe haven" at times when the value of the dollar fell? I guess during Jimmy Carter's presidency if you had your timing right.

As I stated many times before, I don't care about gold. I like silver. Period. I guess that the sheen of gold has a hypnotic effect on some people, but not me.

Past historical trends with gold and silver are meaningless in today's world. Today you are seeing panic buying. Today you are seeing individuals buying silver and gold as a hedge against the devaluation of the U.S. dollar and other world currencies. There is worldwide economic and currency turmoil, and people are reverting back to what they know has intrinsic value: silver and gold.

All bets are off now. The U.S. dollar is not going to make some miracle comeback. Silver and gold will be the new world currency, not paper and ink. Why do you think governments and private citizens around the world are hoarding silver and gold? Why do you think every country in the world that mines gold and/or silver are working at maximum capacity right now?

As for the currencies in other countries, there is not a country on this earth who doesn't recognize the U.S. dollar. There is not a country on this earth whose currency isn't tied to the U.S. dollar in some way. The United States is the biggest consumer in the world. Every non-third-world country in the world is scared to death right now because of what they see as the future of the U.S. dollar.

 

[Hobo1]

As I stated many times before, I don't care about gold. I like silver. Period. I guess that the sheen of gold has a hypnotic effect on some people, but not me.

Past historical trends with gold and silver are meaningless in today's world. Today you are seeing panic buying. Today you are seeing individuals buying silver and gold as a hedge against the devaluation of the U.S. dollar and other world currencies. There is worldwide economic and currency turmoil, and people are reverting back to what they know has intrinsic value: silver and gold.

All bets are off now. The U.S. dollar is not going to make some miracle comeback. Silver and gold will be the new world currency, not paper and ink. Why do you think governments and private citizens around the world are hoarding silver and gold? Why do you think every country in the world that mines gold and/or silver are working at maximum capacity right now?

As for the currencies in other countries, there is not a country on this earth who doesn't recognize the U.S. dollar. There is not a country on this earth whose currency isn't tied to the U.S. dollar in some way. The United States is the biggest consumer in the world. Every non-third-world country in the world is scared to death right now because of what they see as the future of the U.S. dollar.

I guess it's a matter of choose your poison. I've been burned with gold once and I and I can't analyze intrinsic value. I guess that means how much a guy will pay to show a girl he loves her by buying a gold necklace.

Many of the precious metals and industrial metals are mined in Indonesia and the government takes a big cut of the action. Just look at the strength of the currency in these small Asian countries as the dollar continues to fall. A $25,000 deposit in a CD, yields an interest of 5.75%. A $100,000 will earn you 6.50%. On top of that, you keep the value of your money as the dollar falls.

I just don't understand why you think it is axiomatic that every foreign currency will fall as the US dollar falls off its pedestal.

 

[Dr.Who]

Well, most people should be invested overseas as well..the collapse of the dollar does not mean the collapse of the world, and if timed correctly, you will be able to trade for dollars for next to nothing or use foreign currency.

In Germany for example, their currency was worthless basically, but if you had American dollars (even just a few) you could do a ton.

If you pick the right foreign currency that would work.


Is that your plan?

 

[BigRob]

If you pick the right foreign currency that would work.


Is that your plan?

I mean, it would be an option.. I haven't really "planned" for it persay outside of being diversified with investments overseas etc, because I don't think it is going to occur in a rapid manner anytime soon.