The US dollar may collapse

[GaryC 7]

http://articles.moneycentral.msn.com/Inves...BearMarket.aspx

The webmaster of that link should be shot. So hard to read. But to comment on the idea of a "epic bear market". We have seen predictions of doom and gloom before without result. We have also seen forecasts of a rosy future only to have a huge recession. Trying to fortell the future of the economy is like weather forcasting. Sometimes it's right and sometimes it's wrong. Who knows what next year will be like?

[Pinocchio Liberal 268]

Bear markets are nothing more than an oppurtunity to buy.

[Geist 0]

Ron Paul Addressing Bernanke

The fact is, no one has a single clue how much money we have circulating in our economy. The dollar is a fiat currency. If we don't know how many dollars are out there, we don't know how much they're worth, but it looks like the true answer is closer to "very little" than we would like.

[peejay 327]

Bear markets are nothing more than an oppurtunity to buy.

Buy what?

Stocks, bonds, land, houses, gold, pork belly futures, oil contracts?

[peejay 327]

Ron Paul Addressing Bernanke

The fact is, no one has a single clue how much money we have circulating in our economy. The dollar is a fiat currency. If we don't know how many dollars are out there, we don't know how much they're worth, but it looks like the true answer is closer to "very little" than we would like.

Nixon pretty much took us off the gold standard. When foreign banks requested gold for the dollars they held...Nixon refused. It would have emptied the treasury well before all the dollars were redeemed.

The truth as far as I can see is that the US $$$ is basically a share of stock in America. It's just like owning a share of Microsoft or EXXON.

There are some hard assests that prop it up, but not nearly enough hard assests to back the $$$ in circulation. At some point the shares of stock take a big tumble. If that ever happens...it won't be pretty. It's all based on what the market thinks it's worth in the long run. If they decide to cash in all their chips at one time...not good.

Nothing more than a house of cards. If somebody tries to take enough cards...the house comes tumbling down.

[Pinocchio Liberal 268]

Bear markets are nothing more than an oppurtunity to buy.

Buy what?

Stocks, bonds, land, houses, gold, pork belly futures, oil contracts?

This is great one for the long term. With a 5% dividend that pays monthly. Dollar cost averaging into it over time and reinvesting the dividends. Its a slow and steady winner imo.

http://quicktake.morningstar.com/CEFNET/sn...&Symbol=pim

[Stabu 0]

This is great one for the long term. With a 5% dividend that pays monthly. Dollar cost averaging into it over time and reinvesting the dividends. Its a slow and steady winner imo.

No, it's not. It's like trying to catch a falling knife: sometimes it may work, mostly you just end up hurting yourself - badly.

[mawilson 2,133]

I flying to Europe in a week or so - looks like I'll be getting shafted at the Bureau De Change.

So am I, as a matter of fact.

[Trumplestiltskin 5,791]

I flying to Europe in a week or so - looks like I'll be getting shafted at the Bureau De Change.

So am I, as a matter of fact.

Then I guess we'll be getting the shaft together.

[Geist 0]

Nixon pretty much took us off the gold standard. When foreign banks requested gold for the dollars they held...Nixon refused. It would have emptied the treasury well before all the dollars were redeemed.

No, we went off the gold standard during WW2--it's impossible for governments to wage expensive wars and stay on a gold standard without the currency crashing and the economy tanking (which is one of the reasons a lot of governments were so eager to get rid of it). The Bretton--Woods system attempted to keep it alive, but for all intents and purposes, it no longer existed. Nixon just put the final nail in the coffin.

[Pinocchio Liberal 268]

This is great one for the long term. With a 5% dividend that pays monthly. Dollar cost averaging into it over time and reinvesting the dividends. Its a slow and steady winner imo.

No, it's not. It's like trying to catch a falling knife: sometimes it may work, mostly you just end up hurting yourself - badly.

[Heracles 417]

If China, Europe, the Middle East or any large nation wants to screw with the US they could dump their US holdings and cause as much economic damage to us and really sink the value of the dollar.

China would be hurt more than us if they tried that.

I would agree several years ago, but not now. For decades we have been shipping jobs, factories, IP, processes, and 'investing,' in China. We pretty much pay them to produce so much of the ####### we then in turn buy ourselves. At first it was just clothing, shoes, without high dollar items like electronics, machinery, cars, etc.

Now? China has the industrial might, a decent infrastructure, huge trade surplus, cheap labor still, far lower cost of living, and other large advantages we don't have.

Besides that, their entire culture is geared towards sacrifice and suffering, especially at the rural and poorer levels of society. Americans on the other hand want their cheap goods, their SUV's, their disposable lifestyle, and their high levels of consumption. A college educated well paid worker in China makes $250-400 a month.

As a society the Chinese would kill us in ability to deal with less material things and eat suffering. On a national basis the US is growing weaker and weaker, while other nations are growing wealthier and more independent. China also can't be intimidated with force, since they are a nuclear power.

The only reason China is quiet and playing good for now is because just about every single aspect is in their favor. They are perfectly happy the US is spending all this time, lives, money and aggression in the middle east and on this 'war on terror.'

Once they have taken all they can from the US, then see if their tune changes.

While at first I thought here we go but you actually made some really interesting points.

Edited September 21, 2007 by Boo-Yah!

[russ 1]

Bear markets are nothing more than an oppurtunity to buy.

Buy what?

Stocks, bonds, land, houses, gold, pork belly futures, oil contracts?

Bear markets are an oppurtunity to short, buy puts, and write calls. Being long on a declining stock is a sucker play. It may go up in the future, or it may not. Set up positions that have a high chance of making money.

Individual stocks may do well during a bear market, and even whole sectors. I would still be buying stocks becuase they are undervalued and have an upside, not because they have lost value.

[Pinocchio Liberal 268]

Bear markets are nothing more than an oppurtunity to buy.

Buy what?

Stocks, bonds, land, houses, gold, pork belly futures, oil contracts?

Bear markets are an oppurtunity to short, buy puts, and write calls. Being long on a declining stock is a sucker play. It may go up in the future, or it may not. Set up positions that have a high chance of making money.

Individual stocks may do well during a bear market, and even whole sectors. I would still be buying stocks becuase they are undervalued and have an upside, not because they have lost value.

options are too complicated for most. But for your comments are very true.

Edited September 21, 2007 by CarolsMarc

[joelunchbox 0]

Bear markets are nothing more than an oppurtunity to buy.

Buy what?

Stocks, bonds, land, houses, gold, pork belly futures, oil contracts?

Bear markets are an oppurtunity to short, buy puts, and write calls. Being long on a declining stock is a sucker play. It may go up in the future, or it may not. Set up positions that have a high chance of making money.

Individual stocks may do well during a bear market, and even whole sectors. I would still be buying stocks becuase they are undervalued and have an upside, not because they have lost value.

options are too complicated for most. But for your comments are very true.

It was reported today that after adjustments, we are spending at the second highest level (after WWII) in our history. And what will we reap for that expenditure? Unless you are in the game of war......nothing.