there is no dollar crisis !

[dvictr]

i have a ba in economics, mba finance, numerous certification including the CFA

ive read many books by hayek, mises, menger, paul, schiff... you dont have to lecture me on monetary policy. FYI

there is no dollar crisis.. i just wanted to let you guy know that the value of the dollar cannot be predicted. there is no guarantee that gold, silver, the euro, yen, franc, pound will appreciate in the next ten years.. the dollar is stronger today than it was in 2008 vs many assets

buying gold or gold stocks, silver, or any commodity is not a sure thing.

 

[trey4sports]

thank you for sharing your opinion.

 

[Harald]

Do you agree that US has a debt and spending crisis?
If so, what, do you think are the plausible ways for US to get out of this crisis?

 

[pmbug]

 

[JamesButabi]

No reasoning? No data? Was this thread really necessary then?

 

[dvictr]

Do you agree that US has a debt and spending crisis?

yes and yes.. but it doesn't say anything to me about the dollar.

 

[swissaustrian]

I´m swiss - the dollar has depreciated against our fiat currency (chf) for 40 years - why?
The short answer is this:

Inflation is always and everywhere a monetary phenomenon.
—Milton Friedman, Wincott Memorial Lecture, London, September 16, 1970

The only long term driver of the value of a currency is inflation.

To claim that the dxy (http://en.wikipedia.org/wiki/U.S._Dollar_Index ) might be not lower than three years ago is pretty senseless: You are comparing trash (USD) to trash (mainly EUR = 58,6% of the dxy) and suprisingly it stinks both.
Look at the sounder currency´s like the nok, sek, nzd, cad, sgd, chf, brl etc.
And finally: Look at gold.

By the way: the reason why the $ went up so dramatically back in 2008 was repatriations and margin calls on carry trades.

 

[ctiger2]

i have a ba in economics, mba finance, numerous certification including the CFA

ive read many books by hayek, mises, menger, paul, schiff... you dont have to lecture me on monetary policy. FYI

there is no dollar crisis.. i just wanted to let you guy know that 1. the value of the dollar cannot be predicted. there is no guarantee that gold, silver, the euro, yen, franc, pound will appreciate in the next ten years.. 2. the dollar is stronger today than it was in 2008.

buying gold or gold stocks, silver, or any commodity is not a sure thing.

lol!

1. The USDX Index is a basket of fiat currencies that are all being debased against each other. Whatever number they're at means nothing. You have to measure them with the Monetary Ruler - GOLD. How are they doing if you price them all in Gold?

2. In '08 it took 871 Federal Reserve Notes to buy 1oz of Gold. in '11 it takes 1500 Federal Reserve Notes to buy 1oz of Gold. Therefore, the USD has lost 58% of it's purchasing power when priced in Gold. Yea, the USD has never been stronger!

 

[Tiger35]

+1

 

[zert]

"there is no dollar crisis!"

There is for me. I have less dollars, and things are costing more.

 

[dvictr]

the dollar is stronger today than it was in 2008.

to clarify i meant the dollar index.. and vs the euro specifically..
sure the dollar lost ground to Gold, APPLE, Netflix, Silver, Swiss Franc.. but that doesn't mean it will continue

there is a scenario where the US economy enters a technical "double dip" and economic activity dries up/ bank lending freezes and the dollar surges..

try pricing Gold in shares of Priceline.com?

 

[kah13176]

i have a ba in economics, mba finance, numerous certification including the CFA

ive read many books by hayek, mises, menger, paul, schiff... you dont have to lecture me on monetary policy. FYI

there is no dollar crisis.. i just wanted to let you guy know that the value of the dollar cannot be predicted. there is no guarantee that gold, silver, the euro, yen, franc, pound will appreciate in the next ten years.. the dollar is stronger today than it was in 2008.

buying gold or gold stocks, silver, or any commodity is not a sure thing.

What happens when countries realize that paying our debt off is unrealistic and the demand for US Bonds collapses? In that case, demand for the dollar itself falls, which means its value falls.

Also, I pay for shit in dollars. Why am I paying more for gas, energy, food, etc?

 

[dvictr]

Why am I paying more for gas, energy, food, etc?

dont discriminate against people that are looking to buy a house.. the prices came way down and the dollar goes a long way.

the rent in some places came down 30%

 

[Harald]

Do you agree that US has a debt and spending crisis?

yes and yes.. but it doesn't say anything to me about the dollar.

And what is your take on how it is going to get fixed?

What I am driving at that the likely way how it will be fixed is by monetizing the debt by federal reserve and that WILL have effect on the value of the dollar.

If you have a different prediction on how US budget crisis will be fixed, than I can understand how you are not worrying about the value of the dollar.

 

[LibertyEagle]

Dvictr, what you are missing is that all fiat currencies are on a race to zero. ALL of them.

 

[hazek]

Oh if you say so, then it must be true, right OP?

 

[PaulConventionWV]

there is a scenario where the US economy enters a technical "double dip" and economic activity dries up/ bank lending freezes and the dollar surges..

So, are you saying there is no dollar crisis, or that there might not be a dollar crisis? Are you saying there never will be a dollar crisis?

 

[pmbug]

to clarify i meant the dollar index.. and vs the euro specifically..

Tallest midget in the room is still shrinking. The measuring stick you use will color your results and conclusions.

 

[Brandon Todd Carr]

Print more, raise debt ceiling, expect nothing bad to happen.

 

[dvictr]

Do you agree that US has a debt and spending crisis?

And what is your take on how it is going to get fixed?

What I am driving at that the likely way how it will be fixed is by monetizing the debt by federal reserve and that WILL have effect on the value of the dollar.

cut defense spending, end the war on drugs, eliminate various federal departments.. its simple really, i support Ron Paul

all im saying is that the debt and budget issues are not absolutely related to the value of the dollar, all the major countries of the world have budget issues and huge debt. the value of all currencies is relative..

asset price performance vary and are unpredictable..no one knows if Gold/Silver is a better investment than stock in JP Morgan or Facebook