When I say the USD dies, I mean in it's current form...not the US economy (not necessarily anyway...)
My reasoning is this;
1) Economic numbers are actually improving in many ways. I think the US economy still has a vitally intact core and that core is being protected - although the limbs are starting to fall off.
I think PHYSICAL CASH (**which includes a plastic card that has tangible currency attached to it and not merely access to credit used as "cash"**) and PHYSICAL PRECIOUS METALS will be King, Queen, Ace and Duke within the marketplace for the next couple of years.
Why?
GLOBAL flight to quality.
It is the flight to quality that is going to be the demise of the USD (and most other fiat currencies).
The death has already occured.
The zombie is near it's death - sadly, this often means war.
The fiat USD has been shoved down the throats of other countries for decades. Don't take my USD? Eat this gun.
Well, that trend is RAPIDLY coming to end.
In many ways, the rebellion from abroad is not anti US, but simply anti certain aspects of US Foreign policy and the currency..in it's current **chuckle chuckle** form.
I'm more than happy to accept USD that are redeemable at the US Treasury for physical precious metals.
I wouldn't touch the USD in it's current form with a 10 foot poll. I'm even VERY keen on ditching my own Canadian Dollar, in it's current form. I do it all the time.
Jordan, its' the simple REJECTION of a currency in it's CURRENT form that devalues that currency. By definition and root of the word, currency is meant to be CURRENT and therefore malleable.
The smartest Foreign Policy the USG can enact is to peg the USD to gold, silver and energy fueled credit. The value of the USD would SKYROCKET if it were accurately linked to sought after commodities/hard money...therefore the debts of the The Average American would DROP as would the debt of the Government.
In fact, THAT would nearly ensure a global flight to the USD, because the global flight to quality is the REAL trend...so the USA can lead, or it can lose. It's that simple.
MY thoughts are that many, MANY other nations are proving that they are more than happy to sell oil and other resources for gold/euros/their own domestic currencies - leaving the USD out altogether.
This is a classic repricing mechanism within the market place.
2) Now, about that "Global Repricing of the USD";
Geopolitical tensions are producing "earthquakes" with more frequency and force.
The global trend has been to MOVE AWAY from the dollar in currency/trade agreements.
What happens when demand for an asset plunges? Selling of that asset drives its value down - hence the repricing.
Repatriated USDollars to America will erode circulating currency (in the Homeland) to the point of driving up consumer prices for Americans.
The IRONY is that as OTHER MAJOR countries move away from USD's and into things like gold, The Euro...SO WILL ASTUTE HOMELAND AMERICANS.
In fact, those astute Americans may very well be the ones that ENSURE that the US Govt start producing QUALITY DOLLARS rather than "forceably shoved down your throat and perpetually inflated confetti garbage dollars".
It is those Astute Americans...who will drive the healing of the Market Place.
What is a Quality Dollar? Well I like the Constitutional US Dollars...but I also think that a modern US economy deserves even better than those.
When I say the USD dies this year...in NO WAY do I mean THE US and its ECONOMY will die. Damage? Probably. Death. Not in a million years.
It's simply a revaluing of currency vs debt - either through NOMINAL write down (bad ideas corrected through legal backruptcy, liquidation and bad debt forgiveness), or by making a valued asset (specie for example) are repricing it vs debt so that 1) creditors stay afloat and are not screwed over; and 2) debtors have strong value backing their LABOUR - and without their labour fairly being price, they cannot pay those debts back. Unless you like slavery. I don't like slavery.
This can be applied to your housing market, Chinese owed debts, Japanese owed debts...everything.
The Chinese would LOVE for repayment in gold.
Hell, I'd venture to say that if you walked up to Hu Jintao and offered 1800 short tons of gold as repayment and debt forgiveness they'd jump at it. That's like pricing gold around 16,000$ an ounce.
1500 Short tons for Japan (which more than doubles their gold reserves)...BOOM. The 2 crazy large international debts the US owes now PAID. Look at global reserves (of gold), nominal debts and productive capacity (easiest stat being GDP) -those numbers are actually quite balanced and fair.
Print up new currency notes PROUDLY declaring gold/silver convertablity. As long as there are subsequent balanced debt write downs - the so called "deflation" actually reliquifies the market and helps find more accurate prices. SPECIFICALLY LABOUR!
If citizens demand that their own labour be priced in a valuable commodity (which in and of itself helps credits flow in and out of deposits in a healthy manner) - you bet your ass that will spill over into Foreign Policy.
A much, much more peaceful Foreign Policy.
Please, please set your credit and currency markets right.
I'd LOVE to invest in the US.
My reasoning is this;
1) Economic numbers are actually improving in many ways. I think the US economy still has a vitally intact core and that core is being protected - although the limbs are starting to fall off.
I think PHYSICAL CASH (**which includes a plastic card that has tangible currency attached to it and not merely access to credit used as "cash"**) and PHYSICAL PRECIOUS METALS will be King, Queen, Ace and Duke within the marketplace for the next couple of years.
Why?
GLOBAL flight to quality.
It is the flight to quality that is going to be the demise of the USD (and most other fiat currencies).
The death has already occured.
The zombie is near it's death - sadly, this often means war.
The fiat USD has been shoved down the throats of other countries for decades. Don't take my USD? Eat this gun.
Well, that trend is RAPIDLY coming to end.
In many ways, the rebellion from abroad is not anti US, but simply anti certain aspects of US Foreign policy and the currency..in it's current **chuckle chuckle** form.
I'm more than happy to accept USD that are redeemable at the US Treasury for physical precious metals.
I wouldn't touch the USD in it's current form with a 10 foot poll. I'm even VERY keen on ditching my own Canadian Dollar, in it's current form. I do it all the time.
Jordan, its' the simple REJECTION of a currency in it's CURRENT form that devalues that currency. By definition and root of the word, currency is meant to be CURRENT and therefore malleable.
The smartest Foreign Policy the USG can enact is to peg the USD to gold, silver and energy fueled credit. The value of the USD would SKYROCKET if it were accurately linked to sought after commodities/hard money...therefore the debts of the The Average American would DROP as would the debt of the Government.
In fact, THAT would nearly ensure a global flight to the USD, because the global flight to quality is the REAL trend...so the USA can lead, or it can lose. It's that simple.
MY thoughts are that many, MANY other nations are proving that they are more than happy to sell oil and other resources for gold/euros/their own domestic currencies - leaving the USD out altogether.
This is a classic repricing mechanism within the market place.
2) Now, about that "Global Repricing of the USD";
Geopolitical tensions are producing "earthquakes" with more frequency and force.
The global trend has been to MOVE AWAY from the dollar in currency/trade agreements.
What happens when demand for an asset plunges? Selling of that asset drives its value down - hence the repricing.
Repatriated USDollars to America will erode circulating currency (in the Homeland) to the point of driving up consumer prices for Americans.
The IRONY is that as OTHER MAJOR countries move away from USD's and into things like gold, The Euro...SO WILL ASTUTE HOMELAND AMERICANS.
In fact, those astute Americans may very well be the ones that ENSURE that the US Govt start producing QUALITY DOLLARS rather than "forceably shoved down your throat and perpetually inflated confetti garbage dollars".
It is those Astute Americans...who will drive the healing of the Market Place.
What is a Quality Dollar? Well I like the Constitutional US Dollars...but I also think that a modern US economy deserves even better than those.
When I say the USD dies this year...in NO WAY do I mean THE US and its ECONOMY will die. Damage? Probably. Death. Not in a million years.
It's simply a revaluing of currency vs debt - either through NOMINAL write down (bad ideas corrected through legal backruptcy, liquidation and bad debt forgiveness), or by making a valued asset (specie for example) are repricing it vs debt so that 1) creditors stay afloat and are not screwed over; and 2) debtors have strong value backing their LABOUR - and without their labour fairly being price, they cannot pay those debts back. Unless you like slavery. I don't like slavery.
This can be applied to your housing market, Chinese owed debts, Japanese owed debts...everything.
The Chinese would LOVE for repayment in gold.
Hell, I'd venture to say that if you walked up to Hu Jintao and offered 1800 short tons of gold as repayment and debt forgiveness they'd jump at it. That's like pricing gold around 16,000$ an ounce.
1500 Short tons for Japan (which more than doubles their gold reserves)...BOOM. The 2 crazy large international debts the US owes now PAID. Look at global reserves (of gold), nominal debts and productive capacity (easiest stat being GDP) -those numbers are actually quite balanced and fair.
Print up new currency notes PROUDLY declaring gold/silver convertablity. As long as there are subsequent balanced debt write downs - the so called "deflation" actually reliquifies the market and helps find more accurate prices. SPECIFICALLY LABOUR!
If citizens demand that their own labour be priced in a valuable commodity (which in and of itself helps credits flow in and out of deposits in a healthy manner) - you bet your ass that will spill over into Foreign Policy.
A much, much more peaceful Foreign Policy.
Please, please set your credit and currency markets right.
I'd LOVE to invest in the US.
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