Denis' US dollar crash forecast

[MOE from between St. Joe's River and the railroad tracks]

With all due respect - because I'm already in a hundred arguments across this godforsaken forum - yes, they absolutely do.

Its a debt-for-debt structure.

Other countries buy ours - http://en.wikipedia.org/wiki/United_States_Treasury_security

and we buy theirs - http://en.wikipedia.org/wiki/Government_bond

I'm not sure what a debt-for-debt structure means. The link you provide just explains what a govt. bond is--it doesn't show that the us federal government holds foreign currency. Granted, the fed holds euro and other currencies via swaps with foreign central banks. However, I can't think of a single entity in the U.S. Govt that buys foreign bonds. Also, most foreign countries hold U.S. govt bonds because they have to buy dollars to maintain their currency pegs. They almost always boy bonds, notes and bills with those dollars.

I am of the opinion we are currently embroiled in WW3, and it's taking place in the financial markets.  This is why everybody's making such a stink about the Euro-debt crisis, with the "PIIGS" countries.  Greece is the "canary in the coal mine".  Because they are so small, they're symptomatic of larger collapse.  Nobody actually gives a shit if Greece collapses.  Its the size of Rhode Island.  But if they DO collapse, it portends a domino effect, the other countries may not be able to hold their system together as they pour financial aid into that small but gaping wound of a socialist country.

Then comes Italy.  Then Spain.  We hold debt on all of 'em.  These are our ALLIES.  And we actually have to keep buying it, because it's scheduled auction just like ours is.

I'm not sure what you mean when you say "we hold debt on all of 'em". The problem is that some banks, particularly in the Eurozone, hold European periphery bonds. If they take a large haircut on the bonds, the banks' equity will decline precipitously because banks lever their assets to 15-25 for every dollar of equity.




 

[alaric89]

I don't want to go over my 5 sentence per post rule to explain how fiat currency works so... here PV enjoy.
The American Dream By The Provocateur Network
Just because the dollar bounced back somehow doesn't mean reality changed. They can't punish the productive then reward the leaches forever.

[sillyperson]

[Turd Ferguson]

Silver's up double that, percentage wise.

Looks like a bumpy ride for metals for the rest of the year to me.

No rhyme or reason to it anymore lately.

[John Shaw]

Silver's up double that, percentage wise.

Looks like a bumpy ride for metals for the rest of the year to me.

No rhyme or reason to it anymore lately.

Drop when peeps decide to sell some off yo. Lots of people have made a lot of cash if they've bought mucho metalo.

Some big players cash on om FRNs and boom, price drops. Shit hold its value well, though.

Buy it to have, not to sell. Buying it cheap means you can have more, obviously.

[Turd Ferguson]

One thing seems consistent in silver though..........


When oil drops, silver drops about the same percentage. Same thing in the other direction.


I'm just one of those people that likes to know the cause of a sudden sell off. I probably shouldn't think about such things as much as I do, but thats always been my curse. Too much thinking.

And no, I aint selling. Not really buying anymore either though right now. Works been a little slow in the last 3 months or so due to this recession we got going on right now, customers pulling back on their spending and a few just dropping off the radar altogether, so im kinda in hold pattern, paying down the few debts I have and keeping the rest in cash if things really really go to hell in my business.


Edit - WTF, like 4 minutes after I post, I get an email from dispatch with 12 new rollouts for work, medium size jobs to keep me busy for the next two or three weeks or so.

Im tellin ya..... no rhyme or reason to anything right now.

[sillyperson]

Silver's up double that, percentage wise.

I'm overweight 300% silver-assets-to-gold-ones.  

No rhyme or reason to it anymore lately.

Not exactly a big surprise, this jump.
http://www.reuters.com/article/2011/10/25/us-markets-precious-idUSTRE78M11C20111025

But that's exactly how it goes.... the little random Brownian motions still persist, but when Market Fundamentals are pushing on the whole system, you see more and more gaps in a particular direction.
Apply enough pressure and wait....
...
POP!

The American Dream By The Provocateur Network

BTW, I love this video

[Damien Valley]

I think it is very possible for the dollar to collapse but I think they will dodge it.  That is just a guest of mine.  They are going to figure out some way to hold it off. 

I do agree with most people who beileve the view of they won't dodge it forever.  It will most likely happen some day.

The reason I don't think it will happen now though is that I don't think there is another currency strong enough to take over the US dollar's role.  I think the Euro was the closest but the European Union has screwed that up in the last few years.

Most people say China will take over as the world economic leader but China is essentially a house of cards with all those empty cities.  Speaking of that what is the idea China is using behind all those?  DId anyone ever figure that out?

[Chyndonax]

Did it happen?

[analogkid]

Yes. Thank goodness I blew all my money on silver.

[Chyndonax]

Michael Schneider over @ The Economic Collapse Blog has been saying an economic collapse is imminent since 2009. Gerald Celente made several wrong predictions. You just can't trust these self-styled "trends forecasters".