Dollar Chart Tells a Much Different Story than Pundits Do 82 comments
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The fact that I’ve been able to accurately predict the significant stages of this ongoing crisis for over 3 years has nothing to do with intelligence or my ownership of a crystal ball. It merely has to do with the fact that I have understood from the very beginning of this crisis that the origin of this crisis was rooted in our global monetary system. It really is that simple. The “experts” that parade around TV and in the media have consistently been egregiously incorrect about their assessments regarding this crisis not because they are incapable of reaching the same conclusion as I. To the contrary, as insiders at the highest levels of the US Treasury, the US Federal Reserve and Wall Street, they almost certainly understand the mechanisms of this crisis even more than I do. However, they have been consistently wrong about the direction of this crisis because most of them have ulterior motives that are better served through the deliberate and systemic concealment of the true nature of this crisis.
Ever since I was a child, I was fascinated by factors that dictated that different monetary values should be charged for the exact same goods merely based upon the global currency that was being used to consummate its purchase. After I graduated from college and truly began to travel around the world, I noted that during certain years, my travel expenses would be significantly higher than in other years, primarily due to the strength or weakness of the US dollar. As I continued to spend a great deal of my adult life residing and traveling in many different countries, the weakness of the US dollar was always much more apparent to me than to other Americans that never left the United States for business or holidays. Thus, it was infinitely easier for me to predict the 2007 global stock market crash, as I did in this September 2007 article, “Why the Fed’s 0.50% Interest Rate Cut Won’t Save the US Markets“, even when appearances on the surface were rosy. A mere six months after I wrote this article, financial “pundits” continued to sucker retail investors with predictions of stock market bottoms, with one such pundit predicting in March of 2008 that the US Dow Jones index would skyrocket from 12,361 to 20,000 by March of 2009 (by the way, this particular pundit was touted as being famous for accurately predicting previous historical market bottoms) . Many times after such ludicrous predictions are made to pump an industry, it’s quite difficult to find them as financial sites remove them from their websites due to their embarrassing nature. Fortunately, for your reference, I was able to find an existing link to that absurd article here. To give you an idea of how ludicrous that prediction was, the US Dow Jones stands at 8,422 today.
The strength of a nation lies in the strength of its currency. That phrase has always stuck with me. Thus, during the early fall of 2007 when the US market bubble was being inflated to a tipping point by the US Federal Reserve, I never bought into the lies being propagated in the mass media that the bubble was sustainable. Why? Throughout my various business travels in different countries as US stock markets continued to climb higher late in the third quarter of 2007, I noticed that the US dollar’s purchasing power was still declining strongly and barely more worthy than monopoly money. Thus, given the huge disconnect between the strength of the American currency and all the “experts” on TV that were applauding the strength of the US economy, I positioned myself to benefit from a crash instead. In fact, now that I spend more time in Asia than in the United States, my only saving grace is that I started converting dollars into gold years ago and have since converted my business model into a gold standard, which I believe many other businesses worldwide will emulate in future years as this crisis deepens.
Today, the situation is no different than it was back in October of 2007. CEOs from every industry imaginable are saying that the global economic crisis has bottomed and that the recovery will definitely be recognizable and reach a sustainable status by the latter half of this year. But in my opinion, every single one of these CEOs falls into one of either two categories. (1) CEOs that have zero understanding of this global crisis; or (2) CEOs that understand this crisis yet will unethically lie to the masses. Today, in my business travels throughout Asia, the US dollar is still only nominally stronger than monopoly money. Two years ago, when I spoke to a friend of mine whose family owns a large construction business in Dubai, when I asked him if his family business accepts US dollars for payment, his response was laughter. The truly ugly US dollar chart below also confirms the stance I take in this essay. It does not surprise me at all that the banking elites continue to lie about the true state of this crisis. In fact I would expect no less from this sector of society that former US President Andrew Jackson once labeled as “vipers” and “thieves”. However, I am still, at times, astounded at how easily the masses allow themselves to be manipulated by their nonsense. Just a month ago, in this article here, when again, some currency experts called for the US dollar to break out higher, I predicted the end of the rally with a break downward instead, which is the scenario that indeed materialized.
US dollar approaching a dangerous stage above.
Additionally, everything I have mentioned in this article applies to any country in the world. If the economic and financial leaders in your country are telling you a recovery is on the way, but your Central Bank is in the process of flooding your country with hundreds of billions or trillions of local currency to jump-start the economy, then you can be assured that your leaders are full of nonsense as well. In the past, the tactic of flooding markets with free money has cut short prolonged recessions (i.e. think the dot com crash in America), and for this reason, analysts believe they can re-create this scenario today; however, bubbles can only be re-inflated over and over and over a finite number of times before this tactic fails. Unlike Keynesian economists believe, this is not a tactic that can be employed indefinitely without dire consequences. If it could be, then this crisis would have been nipped in the bud in 2007, just as the effects of the US dot com crash were quickly stifled through the artificial creation of a US real estate market bubble, the consequences of which we are paying for now.
The most appealing part of an investment strategy that is based upon an understanding of the faults of our global monetary system is the following: As long as one positions assets to benefit from a monetary crisis, clients will profit despite an occasional prediction about the direction of traditional stock markets that may turn out to be incorrect. How can this be? I explain the answer to this seeming conundrum in this article here, Monetary Inflation: How Increased Paper Wealth Can Translate into a Lower Standard of Living. Bear market rallies that are created by imminent monetary inflation will leave investors poorer in terms of real wealth. Thus, investing in traditional stock markets is not a suitable wealth creation strategy right now. It will be in the future, but just not right now. This is why I maintain an aversion to all traditional stocks in US and European markets unless it is to play the downside when these markets reach an irrational, overbought status. However, I guarantee you that the following two statements are true.
(1) There is no wealth management professional, anywhere in the world, that has been profitable over the past several years without understanding that the origins of this crisis is a monetary crisis and appropriately positioning assets based upon this belief (unless he or she has been exceedingly lucky); and (2) There will be no wealth management professional in the world who will be profitable over the next three years without understanding that this crisis will deepen in future years because we are still firmly in the throes of a monetary crisis.
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This article has 82 comments:
The success of the euro has shown the benefits of monetary union, but the primary problem for the euro and every regional monetary union today is that they must still exist in the multicurrency world where the value of its currency will fluctuate against other currencies.
If 16 countries can use the same currency, why not the 192 U.N.
members? Those 192 countries now use 141 currencies and the number is dropping annually. The euro is definitely a harbinger of the future, and soon all 25 EU members will be part of the EMU, and by then, there will be more EU members to add. Several of the remaining non-euro EU members are now seeking admission as soon as possible. The IMF has even urged several EU members to "euroize" even before completing the standard accession
process.
In addition to eliminating currency fluctuations, the use of a Single
Global Currency would eliminate the current foreign exchange trading expense of $400 billion annually, eliminate currency risk, eliminate current account imbalances, eliminate the need for foreign exchange reserves (now totaling more than $6 trillion); and bring other benefits worth trillions, such as reducing the impact of global financial turmoil such as we are now experiencing.
The Single Global Currency Assn. (singleglobalcurrency.org)
promotes the implementation of a Single Global Currency by 2024, the 80th anniversary of the 1944 conference. That’s only 15 years away.
The world is moving toward a Single Global Currency through the
creation, expansion and merger of regional monetary unions. Another route is through international monetary conferences proposals and agreements, such as were seen at Bretton Woods. The merger of the eurozone with one or two other currencies is one possible route to a Single Global Currency.
The next major realignment of the world's major currencies should be to a common currency managed by a monetary union central bank. When such a currency supports countries with 40-50% of the world's GDP, that currency will become the defacto Single Global Currency, and the "tipping point" momentum will favor its continued growth, until it supports all the countries of the world.
The challenge now is to reach that goal deliberately, as soon as
possible, with as little cost and as few crises as possible. If the
eurozone were to merge with the U.S. dollar of the yen, or if the yen
and the U.S. dollar were to form a monetary union, the road to a Single Global Currency would be clear.
The only remaining questions about implementaiton of a Single Global Currency are: when? and how much cost and turmoil will the world endure before that implementation.
See the book, "The Single Global Currency - Common Cents for the World."
Morrison Bonpasse
Single Global Currency Assn.
Newcastle, Maine, United States
Oil's recent run up was based on perceived inflation. However, there's so much supply stuffed in every nook and cranny, I wonder if those prices will collapse once we figure out that demand is not there. Look at what nat gas did today, a much better real-time indicator of energy demand.
At least the last stock market crash in the fall was coupled with the return of the strong dollar. I don't think we're going to be so lucky this time around. Check out the treasuries getting hammered today too.
Is our last line of defense gold? If gold doesn't keep up with the falling dollar, does this mean we're staring back at a deflationary spiral?
Seriously, a bit concerned. Mr. Kim you are very right when you say "Unlike Keynesian economists believe, this is not a tactic that can be employed indefinitely without dire consequences". Is this the point in time where we are forced to own up to this problem and take our medicine?
One world currency works great with one world standard of living. Since unemployment arbitrages trade imbalances when exchange rates cannot, US unemployment would soar unless we reduced our standard of living to be much more on par with China, India, Bangladesh, et. al.
Good luck on your quest. I agree wholeheartedly on one world currency, if by that you mean hard currency. We can't even get one country to stick to that.
Thank you for your insight. It is consoling to me that someone else believes that we are barely into this current global economic mess. I solidly hold a physical position in precious metals. For those unfortunates that believe the spoon fed stories that they swallow, I feel sorry for. However, you can lead a horse to water, but you can't make him drink!
I am not sure about Gold as a safe play. Gold has quadrupled in value in the last 8 years or so.
Where do i put my my money in an environment of slow growth, a weak dollar and rising staple prices? tech stocks? they are the only ones i really have any faith in
And, if it were composed entirely of a shiny precious metal, all the better!!
The risk of the dollar crashing just eclipsed the risk of another large market downturn in my eyes.
I will continue to buy oil/gold/international currency MM funds
Ag + Basic Materials to follow as I have yet to do the proper research
KING SOLOMON HAD GOLD.
WHY NOT US POOR FOLKS, TOO.
as for the person who speaks about oil cost and demand. how uch up is oil in euro's today. in dollars stable, in euro's down.
Bernake et al. belong in Jail.
> The success of the euro has shown the benefits of monetary union,
> soon all 25 EU members will be part of the EMU
If that's "success" then I wouldn't have wanted to see what failure looked like... Everything that was predicted would happen during it's first serious recessionary test has occurred.
See the dire plight of Ireland... and Spain; Italy; Greece; Portugal... Only Germany is in a position to leave it and a return to the D-Mark would be an increasingly popular choice.
To get Britain to join would require military conquest at the very least; getting them to stay in the EU at all may be hard enough.
Bearing in mind Mayer Rothschild's oft-quoted phrase...
"Give me control of a country's money-supply and I care not who makes it's laws..."
...who gets to issue this global currency - and what democratic control do "we the people" have over them?
Why do we even need a synthetic, alien and fiat "global currency?" We need only to complete the restoration of a universally-acceptable and historically-proven one to it's rightful place - it's yellow, hard and shiny....
Like Mr. Kim I've had the luck to live abroad and been astonished by how easily people adapt to a declining currency, even so far as to placidly accept a roll back. This has led me to the belief we can live through this by a simple tactic...hold hard assets with some being very liquid. My choices are gold/silver, gold and oil stocks, income real estate (of long holding), ag funds and little debt.
So far, almost to the point of guilt, it's been a good run as measured in todays' paper. No matter where the dollar goes, one or more of these should cushion the shock.
Just an addition which may be a pertinent addition to your observations on travel and the perception of the USD in trade. Before a decade or so ago, the USD had a lot of respect when doing business abroad, especially in the developing nations. It wasn't unusual for Europeans to carry large amounts in cash and figure all the transactions in the USD simply because of the respect and convenience it offered. Additionally, it had the "Feel good factor" of doing your bit to spread what America represented - freedom, liberty, trade, peace, stability, and social mobility - the usual words that are these days hijacked by the right wing to justify all sorts of evil on the less fortunate. How times change. Almost a decade of Mr.Bush's antics later, those same people would not touch a dollar with a bargepole because of what it represents: War criminals, fraudsters, and religious fundamentalists imposing their warped values on the rest of the world. Whether right or wrong, the intangible qualities of a nation's currency associated with the social, political, and ethical nature of that nation's government does affect the perception of trust and therefore value in the currency.
It may play a small part in the rejection of the USD around the world which I sincerely hope will somehow be rectified by the new administration.
That said, I see nothing in this chart that spells disaster. Yet. If and when the 50 day drops below the 200, I can get with the notion that the dollar is going to resume a very significant move downward. That may be good for US equities in the long run, as valuations for US firms become relatively cheaper to their foreign counterparts. For that reason, I wouldn't rule out holding some US equity. But appropriate hedging with dollar short ETFs or gold ETFs may be prudent.
Also, if the dollar does enter a new technical downward trend, you can expect commodities to perform well, and companies that produce commodities and sell them in dollar denominations (for instance, many Latin American firms) will do very well. I would consider some ETFs like ILF to capitalize on a falling dollar, as well.
We have 6 great national strategic assets that the governing elites will not be able to destroy. They are:
1. A population of over 300 million people and growing. People are an asset(when properly led and motivated). Our national demographic profile is greatly superior to Europe, Japan, Russia or China
2. Vast arable land(and excellent ,if poorly managed, water resources) to feed a world that wants more and better food
3. A tremendous endowment of natural resources, esp. energy resources ( no nation matches the diversity, quality and sheer quantity of America's energy resources.)
4. A depth and diversity of technolgical skills unmatched by any nation in history and well ahead of our competitors
5. A physical infrastructure of communications, logistics, housing and basic education that none of our Asian rivals come close to possessing: the fact we do not use this infrastructure well is,of course, a liability but that is the fault of the governing classes, not a flaw in the infrastructure.
6. Millions of entrepreneurs and potential entrpreneurs, capable of astonishing achievement when allowed to perform
I suggest that after we very painfully reach bottom, whenever that is ,these 6 great national assets under new national, state and local leadership will form the basis for not just renewal but true greatness.
China, the US' major enemy, enjoys a much stronger currency. China also seems to be developing a superior technological work force and base. Granted, their demographic profile is much weaker and the country bears an enormous pollution burden.
Try making your point without shilling for yourself, and people might take start taking you seriously.
too many lawyer and miseducated mba grads in relation to engineering grads, with which to "design" a "nice" way out of this mess
it will take a generation or two to recover from the commercial/sociological debauchery of the past 30yrs
On May 21 05:17 PM User 353732 wrote:
> You have ably described our continuing descent into a dark canyon.
> I agree that we are not yet at the bottom ,or even close to the bottom,
> of the canyon. However, in my view, it is not a Box Canyon: there
> is a long, slow, way out of the canyon onto the other side.
> We have 6 great national strategic assets that the governing elites
> will not be able to destroy. They are:
> 1. A population of over 300 million people and growing. People are
> an asset(when properly led and motivated). Our national demographic
> profile is greatly superior to Europe, Japan, Russia or China
> 2. Vast arable land(and excellent ,if poorly managed, water resources)
> to feed a world that wants more and better food
> 3. A tremendous endowment of natural resources, esp. energy resources
> ( no nation matches the diversity, quality and sheer quantity of
> America's energy resources.)
> 4. A depth and diversity of technolgical skills unmatched by any
> nation in history and well ahead of our competitors
> 5. A physical infrastructure of communications, logistics, housing
> and basic education that none of our Asian rivals come close to
> possessing: the fact we do not use this infrastructure well is,of
> course, a liability but that is the fault of the governing classes,
> not a flaw in the infrastructure.
> 6. Millions of entrepreneurs and potential entrpreneurs, capable
> of astonishing achievement when allowed to perform
> I suggest that after we very painfully reach bottom, whenever that
> is ,these 6 great national assets under new national, state and local
> leadership will form the basis for not just renewal but true greatness.
Dave
We should learn that no fiat currency which does not have rat least 10% to 100% GOLD will continue to keep people poor. When will we learn?
Dave
> We have 6 great national strategic assets that the governing elites
> will not be able to destroy. They are:
> 1. A population of over 300 million people and growing. People are
> an asset(when properly led and motivated). Our national demographic
> profile is greatly superior to Europe, Japan, Russia or China
Our growth mostly comes from illegal, uneducated immigrants from Mexico.
> 2. Vast arable land(and excellent ,if poorly managed, water resources)
> to feed a world that wants more and better food
The land is getting worse, fast, due to unsustainable practices. Talk to any farmer. Global warming will also have an effect.
> 3. A tremendous endowment of natural resources, esp. energy resources
> ( no nation matches the diversity, quality and sheer quantity of
> America's energy resources.)
We have lots of coal, but no oil. We do have lots of renewables, though.
> 4. A depth and diversity of technolgical skills unmatched by any
> nation in history and well ahead of our competitors
We are losing our edge to competitors. The best scientists and engineers are skilled immigrants, but better opportunities are keeping them or are luring them back home. Domestic americans are not motivated enough to study hard sciences.
> 5. A physical infrastructure of communications, logistics, housing
> and basic education that none of our Asian rivals come close to
> possessing: the fact we do not use this infrastructure well is,of
> course, a liability but that is the fault of the governing classes,
> not a flaw in the infrastructure.
Basic education in Asia is leaps and bounds better than that in America. Where they are lacking is in higher education - and they are quickly closing there.
> 6. Millions of entrepreneurs and potential entrpreneurs, capable
> of astonishing achievement when allowed to perform
Millions here, but tens of millions elsewhere. America has become complacent with its high standard of living. Nationals of other countries (esp. Chinese) are striving much harder to succeed and that is going to be the difference in education, technology, innovation, and success. Effort is rewarded.
> I suggest that after we very painfully reach bottom, whenever that
> is ,these 6 great national assets under new national, state and local
> leadership will form the basis for not just renewal but true greatness.
On May 21 03:12 PM Morrison Bonpasse wrote:
> Mr. Kim's views are significant and interesting. It is our multicurrency
> system that causes much of the price differential among goods and
> services, and we can fix that problem by moving to a Single Global
> Currency which will provide what the people of the world want - stable
> money.
> The success of the euro has shown the benefits of monetary union,
> but the primary problem for the euro and every regional monetary
> union today is that they must still exist in the multicurrency world
> where the value of its currency will fluctuate against other currencies.
>
> If 16 countries can use the same currency, why not the 192 U.N.<br/>members?
> Those 192 countries now use 141 currencies and the number is dropping
> annually. The euro is definitely a harbinger of the future, and
> soon all 25 EU members will be part of the EMU, and by then, there
> will be more EU members to add. Several of the remaining non-euro
> EU members are now seeking admission as soon as possible. The IMF
> has even urged several EU members to "euroize" even before completing
> the standard accession
> process.
> In addition to eliminating currency fluctuations, the use of a Single
>
> Global Currency would eliminate the current foreign exchange trading
> expense of $400 billion annually, eliminate currency risk, eliminate
> current account imbalances, eliminate the need for foreign exchange
> reserves (now totaling more than $6 trillion); and bring other benefits
> worth trillions, such as reducing the impact of global financial
> turmoil such as we are now experiencing.
> The Single Global Currency Assn. (singleglobalcurrency.org)
>
> promotes the implementation of a Single Global Currency by 2024,
> the 80th anniversary of the 1944 conference. That’s only 15 years
> away.
> The world is moving toward a Single Global Currency through the<br/>creation,
> expansion and merger of regional monetary unions. Another route is
> through international monetary conferences proposals and agreements,
> such as were seen at Bretton Woods. The merger of the eurozone with
> one or two other currencies is one possible route to a Single Global
> Currency.
> The next major realignment of the world's major currencies should
> be to a common currency managed by a monetary union central bank.
> When such a currency supports countries with 40-50% of the world's
> GDP, that currency will become the defacto Single Global Currency,
> and the "tipping point" momentum will favor its continued growth,
> until it supports all the countries of the world.
> The challenge now is to reach that goal deliberately, as soon as
>
> possible, with as little cost and as few crises as possible. If
> the
> eurozone were to merge with the U.S. dollar of the yen, or if the
> yen
> and the U.S. dollar were to form a monetary union, the road to a
> Single Global Currency would be clear.
> The only remaining questions about implementaiton of a Single Global
> Currency are: when? and how much cost and turmoil will the world
> endure before that implementation.
> See the book, "The Single Global Currency - Common Cents for the
> World."
> Morrison Bonpasse
> Single Global Currency Assn.
> Newcastle, Maine, United States
Will forward your article and the 2008 to everybody I know.
Regarding DHH counterpoints above to User 353732, I don't disagree completely with the gist of your counterpoints. However much of it is a result of the anti-middle class and pro-capitalist practices of the current American Oligarchy which serves their interests, more than the nation as a whole.
For example, you end with the notion that effort is rewarded, and indeed it is, but such reward does not accrue to the masses, but rather to the capitalist elites.
This is illustrated by the following:
"
The best scientists and engineers are skilled immigrants, but better opportunities are keeping them or are luring them back home. Domestic americans are not motivated enough to study hard sciences.
"
The lack of motivation is a direct result of policies which favor the capitalist elites and undermine labor, even at the highest intellectual endeavors. When you are flooding the market with much lower paid Indian, Chinese and other immigrants of the hard sciences, making supply and demand work against American hard-science labor, what do you expect? Studying hard science is very hard, I tried it, but, like others, found that I would make more money with less immigrant labor competition in other fields, so guess what, many have come to the same conclusion and we have the result you stated above.
A change in policies away from favoring the entrenched capitalist elites, especially the American Oligarchy, is all that is needed for this country of 300 million to reassert itself on the world stage, once again. However, a continuation of policies which favor a decaying world capitalist system which is increasingly failing to make effective use of the productive forces of the USA and instead bails out entrenched financial (and other) capitalist elites to the tune of $trillions of dollars will do nothing to forestall the coming Greater Depression, in my opinion.
So, either capitalism reforms to favor the masses, as it did for the first time post WWII, or the masses will take matters into their own hands; historically, that has always been the case, and so it shall be again, no doubt.
More information below:
"Communism on rise in recession-hit Japan"
news.bbc.co.uk/2/hi/as...
Banks Counted on Looting America’s Coffers
tinyurl.com/bkezmt
The Quiet (American) Coup
www.theatlantic.com/do...
Bill Black on 'Top Elites': All Are Presently Committing 'Fraud'
seekingalpha.com/artic...
"How to Avoid Another Depression"
mises.org/story/3103
"The Fed's War on the Middle Class"
mises.org/story/2983
When our monetary system is fraudulent, it takes economic control away from our citizens and places it in the hands of the financial oligarchs. When our Central Bank attempts to artificially manufacture a recovery through inflating assets as they are doing now (significant inflation will come in the future), this is not real growth. Thus, I am merely stating that a sound monetary system can lead the way into economic recovery but an unsound monetary system, unfortunately, enables Central Bankers to fool the masses with an illusion that recovery is on the way when indeed it is not. To return America to the great nation we are, we simply need to implement a sound monetary system. Then we would have a sound currency and a strong nation.
On May 21 05:17 PM Market Sniper wrote:
> Good article, Mr. Kim. The only real exception I can take is your
> statement "The strength of a nation lies in the strength of its currency.
> That phrase has always stuck with me." To this statement I vehemently
> disagree on a number of levels. At its most basic, the strength of
> a nation rests on its productive capacity, its ability to produce
> goods and services that people want and need. In other words, to
> produce true wealth. As for the "currency", a little parable. Many
> years ago there were fine restaurants. Such fine restaurants hat
> hat check girls. A gentleman would check his hat with her and receive
> a claim check for his hat. Only an idiot or a fool would then parade
> through the restaurant stating that his claim check was a hat! All
> currencies on the planet exist by government decree and are created
> out of DEBT. They do NOT represent wealth by any stretch of the imagination.
On May 21 03:12 PM Morrison Bonpasse wrote:
> Mr. Kim's views are significant and interesting. It is our multicurrency
> system that causes much of the price differential among goods and
> services, and we can fix that problem by moving to a Single Global
> Currency which will provide what the people of the world want - stable
> money.
> The success of the euro has shown the benefits of monetary union,
> but the primary problem for the euro and every regional monetary
> union today is that they must still exist in the multicurrency world
> where the value of its currency will fluctuate against other currencies.
>
> If 16 countries can use the same currency, why not the 192 U.N.<br/>members?
> Those 192 countries now use 141 currencies and the number is dropping
> annually. The euro is definitely a harbinger of the future, and soon
> all 25 EU members will be part of the EMU, and by then, there will
> be more EU members to add. Several of the remaining non-euro EU members
> are now seeking admission as soon as possible. The IMF has even urged
> several EU members to "euroize" even before completing the standard
> accession
> process.
> In addition to eliminating currency fluctuations, the use of a Single
>
> Global Currency would eliminate the current foreign exchange trading
> expense of $400 billion annually, eliminate currency risk, eliminate
> current account imbalances, eliminate the need for foreign exchange
> reserves (now totaling more than $6 trillion); and bring other benefits
> worth trillions, such as reducing the impact of global financial
> turmoil such as we are now experiencing.
> The Single Global Currency Assn. (singleglobalcurrency.org)
>
> promotes the implementation of a Single Global Currency by 2024,
> the 80th anniversary of the 1944 conference. That’s only 15 years
> away.
> The world is moving toward a Single Global Currency through the<br/>creation,
> expansion and merger of regional monetary unions. Another route is
> through international monetary conferences proposals and agreements,
> such as were seen at Bretton Woods. The merger of the eurozone with
> one or two other currencies is one possible route to a Single Global
> Currency.
> The next major realignment of the world's major currencies should
> be to a common currency managed by a monetary union central bank.
> When such a currency supports countries with 40-50% of the world's
> GDP, that currency will become the defacto Single Global Currency,
> and the "tipping point" momentum will favor its continued growth,
> until it supports all the countries of the world.
> The challenge now is to reach that goal deliberately, as soon as
>
> possible, with as little cost and as few crises as possible. If the
>
> eurozone were to merge with the U.S. dollar of the yen, or if the
> yen
> and the U.S. dollar were to form a monetary union, the road to a
> Single Global Currency would be clear.
> The only remaining questions about implementaiton of a Single Global
> Currency are: when? and how much cost and turmoil will the world
> endure before that implementation.
> See the book, "The Single Global Currency - Common Cents for the
> World."
> Morrison Bonpasse
> Single Global Currency Assn.
> Newcastle, Maine, United States
But, consider Argentina, once one of the leading economies of the world, and its long slide to decline due to mismanagement.
The loss of American manufacturing and financial trust engendered by a political "me first" elite will take a long period of time to replace in a world filled with hungry and capable competitors.
Hopefully, public policy will and political will will be guided by a similar manifesto to yours but even so todays investor should be very proactive in preserving the little wealth he has left.
On May 21 05:17 PM User 353732 wrote:
> You have ably described our continuing descent into a dark canyon.
> I agree that we are not yet at the bottom ,or even close to the bottom,
> of the canyon. However, in my view, it is not a Box Canyon: there
> is a long, slow, way out of the canyon onto the other side.
> We have 6 great national strategic assets that the governing elites
> will not be able to destroy.
> Mr. Kim's views are significant and interesting. It is our multicurrency
> system that causes much of the price differential among goods and
> services, and we can fix that problem by moving to a Single Global
> Currency which will provide what the people of the world want - stable
> money.
Mr. Bonpasse, you can have my US dollars when you pry them from my cold, dead hands. Your single universal currency will solve nothing, and will only serve to violate the sovereignty of the United States of America.
Economic globalization is one thing, but the "Single Global Currency" is completely unnecessary for that -- it is a step toward political globalization and world government.
I am an American and wish to remain an American.
> It is our multicurrency system that causes much of the price
> differential among goods and services, and we can fix that
> problem by moving to a Single Global Currency which will
> provide what the people of the world want - stable money.
Also, Mr. Bonpasse, regarding your argument that our multicurrency system is the core of our problem and a "Single Global Currency" will magically solve them -- utter nonsense!
The cause of most of the world's problems is poor governance -- governmental and corporate corruption, the unmitigated growth of entitlement programs, currency debasement (which can happen just as easily with a shared currency), poor lawmaking, and a failure to enforce existing laws.
A "Single Global Currency" would make the United States subject to far too many of the problems of foreign nations. We have enough problems of our own to deal with.
Besides, the "stable money" you speak of already exists. It's called gold.
Currency no longer has rarity or scarcity, politicians simply head off and make some more.
In terms of making more dollars right now, buy real rarity and scarcity, it is the only hedge against the deteriorating dollar.
On May 21 05:17 PM Market Sniper wrote:
> Good article, Mr. Kim. The only real exception I can take is your
> statement "The strength of a nation lies in the strength of its currency.
> That phrase has always stuck with me." To this statement I vehemently
> disagree on a number of levels. At its most basic, the strength of
> a nation rests on its productive capacity, its ability to produce
> goods and services that people want and need. In other words, to
> produce true wealth. As for the "currency", a little parable. Many
> years ago there were fine restaurants. Such fine restaurants hat
> hat check girls. A gentleman would check his hat with her and receive
> a claim check for his hat. Only an idiot or a fool would then parade
> through the restaurant stating that his claim check was a hat! All
> currencies on the planet exist by government decree and are created
> out of DEBT. They do NOT represent wealth by any stretch of the imagination.
Looking at the daily chart will only show you the trees and not the forest.
US dollar is still bound to go up higher after this prolonged-consolidation has completed. Day-to-day price action will confuse many analysts and that is exactly what happens when a triangle is forming. Or rather, the triangle got formed because of the prevailing confusion among market participants.
I have suspected the potential formation of a triangle since Dec 2008 on the first run down. The attempted rally from Dec 2008 to March 2009 further strengthened the concept of a triangle thus I never believed the analysts when they start predicting the dollar rally was sustainable at that time. Now the "predictable" c-wave of an a-b-c-d-e triangle is in the process. It should be followed by the d-wave up and the e-wave down before the next rally on the monthly chart can start.
It takes time. Triangle formation takes more time than most other basic patterns and is the most confusing. Very few analysts have the technical knowledge on how to spot the potential formation of triangles in their early stages. I happen to have studied one of those analysis by a technician with more than 30 years experience and have applied his knowledge to my own analysis.
Analysis of today will change tomorrow. Using the daily chart is not the proper way of analyzing where the US dollar is headed in the long run. We will be able to see the trees with daily charts and not the jungle.
Similarly, the Euro dollar is headed downwards. Analyze the monthly chart of the Euro$ and there is more than 80% probability it is still headed down. There is no other currency that affects the US dollar than the Euro$. And so as the past inter-relationship between Euro$ and US$ cannot be changed in a matter of days or months; the US$ will be headed upwards as the Euro$ starts going down by the second half of this year or early next year. More likely in parity with the US$.
As to this author's analysis of the rally towards 14,200 of Dow Jones in 2007. In all probability the majority of large market participants (those who have big stakes in the stock markets such as intitutional funds) were not expecting the rally to last into the far future. The author was not among the "few" who were correctly expecting another bear market sell-off after the supposedly "bubble rally" has ended. Warren Buffet was one of them having started his successful career during the 1965 to 1980 bear market consolidation. He understands what happended during those years. That could be the reason why he did not believe the 2002 to 2007 rally was sustainable.
SnP500 may undergo the same process that Dow Jones did in 1965 to 1980. They have the same pattern but not necessarily the same degree of severity and duration.
If you analyze the rally from 2002 to 2007; it was not an impulsive rally but rather a corrective rally in technical terms. It was a hesitant rally or a "bear rally" in the context of the bear market that has started in year 2000 but did not end in 2002. There was an economic recovery during 2003 to 2007 but the bear market never ended in Oct 2002. It continued into Oct 2007 and followed by this C-wave of the 2007 to 2009 market meltdown.
Majority, if not only the big institutions, have shown their understanding of the markets during the 2002 to 2007 "bear rally" by their actions as has been recorded in the monthly charts. They did not believed a sustainable economic recovery after the 2000 to 2002 tech meltdown. And so they sold off as fast as they can since Oct 2007.
The bubble rallies from 2002 to 2007 were the housing, retail, insurance, and brokers/dealers sectors that I can see; the rest including the banking sector did not participate into a bubble rally but rather went into a bear rally.
Look at their monthly charts of individual sectors and calculate how much percentage rally they made during the 2002 to 2007 period and how far they were able to recover or to rally beyond the recovery rate of 100% since 2002.
And so it showed in the Dow Jones that made a 154% recovery rate (is that a bubble - 54% excess rally beyond recovery?); SnP of 103% (also a bubble? Started and ended at practically the same place, no excess rally = no bubble); and Compq with recovery rate of a little more than 38.2% (definitely not a bubble rally).
It is what they did that matters, not what most market participants said during that period.
Dow Jones made a recovery rally from it's 470 price of 1929 = 2,400% into year 2000 price of 11,750. Or a total price appreciation of almost 28,000% from the last low of $42/share in 1932. That is what I can call the "Bubble of the 20th Century" and even perhaps of unprecedented scale.
9 years of bear market performance cannot be studied on a day-to-day basis nor on the weekly basis. Using fundamental analysis can take considerable time and efforts to arrive at reasonable conclusion. The fastest way to analyze is by technical analysis. But then, looking at the wrong time-frame such as the daily chart or the weekly chart will more likely give a wrong conclusion.
For now, the monthly, quarterly, and yearly charts of Dow Jones is defining an Expanding Flat with more than 90% probability. It is now at the last stages of finalyzing the expanding flat. There are no fundamental factors that I can see that can alter it's "technical" course of actions towards it's eventual completion at this stage.
Expanding flats do result in a very strong rally after the pattern has completed in more than 70% of the cases I have analyzed.
This is the biggest expanding flat that I have analyzed and the one that takes 9 years to form. Few if none of today's analysts have experienced this size of an expanding flat before. I doubt if there are few, if any, fundamental analysts who were able to study the 1965 to 1980 bear market consolidation in it's whole context rather than the individual sell-offs and bear rallies during that period.
And that remains to be the norm these days. Fundamental analysts (and most technical analysts) are studying the downturns in 2000 to 2002 and that of 2007 to 2009 individually as if they have no correlation at all to the whole context of a bear market consolidation needed to correct the sustained rally from the early 1980's to the year 2000. Much less to the whole context of stock markets and the inter-connected global economy since the 19th century.
Very few analysts study the whole concept of rallies and corrections (sell-offs or bear markets) in the context of the last century and the far past and how they correlate with the present and into the near and far future. One of them is Prechter (if I spell it right) of Elliott Waves International. Though I don't follow him at all and makes my own analysis.
Look at the big picture (the jungle) and not the individual trees.
We have more than 70% probability rate of heading into a big rally lasting at least 5 years after this 9 year-old expanded flat of Dow Jones has completed it's course of actions.
Don't invest in this severe downturn and you might commit the biggest investment mistake in your lifetime. Economic crisis (~investment opportunity) of this magnitude don't happen very often in one's lifetime.
Loved the article, but...
"What makes America a great nation is the strength, resiliency and diversity of our citizens and our ingenuity to create sustainable goods and services that can drive productive growth."
You have to seriously reconsider this. Is the average (not the top 5%) American really that much "better" than a citizen in Japan, China, India, or Europe? Certainly Americans are not all brain dead, but they now face global competition--that has closed the gap--in order to secure growth and prosperity.
All of this is happening while Americans are voting in a massive expansion of government and social programs (over the last 30 years...so this isn't a Democrat or Repubican thang). Broke, losing competitiveness, and still throwing cash around while letting the milk cow starve and be attacked by wolves. Not what I think made America "great".
To the gentle readers of SA, if all you know is Keynes, then those that know Mises will own your butt very, very soon.
let's hear hear about all of your self serving interests and discloseres.
reminds me of a blow fish.
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On May 21 07:56 PM Cecil wrote:
> Thank you Mr. Kim. I have made a bloody fortune off of your market
> predictions. I simply do the exact opposite of what you say.
I'm definitely no economist or finance wizard, but it seems to me that monetary inflation is actually not a horrible situation for America in the coming decade (assuming it doesn't spin wildly out of control). With the government debt load high, personal debt load higher, and corporate debt moderate, doesn't it make sense to attempt to "jumpstart" an economy (at the potential risk of inflation) with injecting capital into the system. If higher than normal inflation does develop, it makes existing debt easier to resolve. And, debt resolution is critical for long-term fiscal health. So, question, why should most Americans be resistent to inflation if it is a necessary possible implication to stimulating the economy?
Thanks for your time.
Alternatively invest in multinational companies such a BA, JNJ, PG, PFE etc which generate a majority of their revenues outside the US.
My favorite investment right now is emerging market debt. Not only are the bonds generating fat interest but the currency are appreciating as well.
On May 21 05:17 PM User 353732 wrote:
> You have ably described our continuing descent into a dark canyon.
> I agree that we are not yet at the bottom ,or even close to the bottom,
> of the canyon. However, in my view, it is not a Box Canyon: there
> is a long, slow, way out of the canyon onto the other side.
> We have 6 great national strategic assets that the governing elites
> will not be able to destroy. They are:
> 1. A population of over 300 million people and growing. People are
> an asset(when properly led and motivated). Our national demographic
> profile is greatly superior to Europe, Japan, Russia or China
> 2. Vast arable land(and excellent ,if poorly managed, water resources)
> to feed a world that wants more and better food
> 3. A tremendous endowment of natural resources, esp. energy resources
> ( no nation matches the diversity, quality and sheer quantity of
> America's energy resources.)
> 4. A depth and diversity of technolgical skills unmatched by any
> nation in history and well ahead of our competitors
> 5. A physical infrastructure of communications, logistics, housing
> and basic education that none of our Asian rivals come close to
> possessing: the fact we do not use this infrastructure well is,of
> course, a liability but that is the fault of the governing classes,
> not a flaw in the infrastructure.
> 6. Millions of entrepreneurs and potential entrpreneurs, capable
> of astonishing achievement when allowed to perform
> I suggest that after we very painfully reach bottom, whenever that
> is ,these 6 great national assets under new national, state and local
> leadership will form the basis for not just renewal but true greatness.
The last time I remember such pessimism was in 1979, towards the end of Carter's presidency. Things were tough for awhile, but inflation was tamed and American and world productivity got a tremendous shot in the arm when personal computers started making most small businesses more competitive, productive and responsive to their customer base.
Something always comes along. Ideas start out small and gain traction. In America, this is far more true than it is in most other nations.
We're in a serious economic bind right now, and people around the world are beginning to count us out once more.
I predict that in five years we will have put all these problems behind us. There will be a new technological breakthrough that makes such a tremendous recovery possible. I wish I knew what it is going to be
Here is what I did right but what I also didn't do that I should have done.
A couple of weeks back for some strange reason out of the blue Gold charts started yelling buy! buy! buy! So I started checking various Gold miners and every one of them suddenly had developed technial metrics that yelled strong buy! Since I am a chart follower I did an immediate reallocation of my portfolio and gave a decent % to Gold miner stocks. So that you know I am not making this up I also published this in my blog. I was rather surprised by this because the equity rally appeared intact and inflation wasin check. Equity market continued deterriorating during the week and then comes this S&P wallop out of the blue and Gold made yet another strong leap upwards. The markets saw this coming a couple of weeks back and this also warns of something serious possibly developing like a global monetary crisis. Whether it does or not you can't go wrong investing in Gold because Gold acts as a great hedge againt any possible monetary crisis.
What I didn't do was short the dollar! It should have been an obvious trade!
On May 22 09:23 PM InvestBaboo wrote:
> Correctamundo!
>
> Here is what I did right but what I also didn't do that I should
> have done.
>
> A couple of weeks back for some strange reason out of the blue Gold
> charts started yelling buy! buy! buy! So I started checking various
> Gold miners and every one of them suddenly had developed technial
> metrics that yelled strong buy! Since I am a chart follower I did
> an immediate reallocation of my portfolio and gave a decent % to
> Gold miner stocks. So that you know I am not making this up I also
> published this in my blog. I was rather surprised by this because
> the equity rally appeared intact and inflation wasin check. Equity
> market continued deterriorating during the week and then comes this
> S&P wallop out of the blue and Gold made yet another strong leap
> upwards. The markets saw this coming a couple of weeks back and this
> also warns of something serious possibly developing like a global
> monetary crisis. Whether it does or not you can't go wrong investing
> in Gold because Gold acts as a great hedge againt any possible monetary
> crisis.
On May 21 09:45 PM J. S. Kim wrote:
> I don't disagree with you. We basically are saying the same thing
The way I see it though is that real issue is about power and control - ie a gold standard which is what should happen, takes away the power from the politicans, senior bankers etc... and puts the world on an even playing field, trust me they will fight with all they can to prevent this but as in the UK political market the power system may just self-implode and where will that leave the $?
On May 21 05:17 PM User 353732 wrote:
> You have ably described our continuing descent into a dark canyon.
> I agree that we are not yet at the bottom ,or even close to the bottom,
> of the canyon. However, in my view, it is not a Box Canyon: there
> is a long, slow, way out of the canyon onto the other side.
> We have 6 great national strategic assets that the governing elites
> will not be able to destroy. They are:
> 1. A population of over 300 million people and growing. People are
> an asset(when properly led and motivated). Our national demographic
> profile is greatly superior to Europe, Japan, Russia or China
> 2. Vast arable land(and excellent ,if poorly managed, water resources)
> to feed a world that wants more and better food
> 3. A tremendous endowment of natural resources, esp. energy resources
> ( no nation matches the diversity, quality and sheer quantity of
> America's energy resources.)
> 4. A depth and diversity of technolgical skills unmatched by any
> nation in history and well ahead of our competitors
> 5. A physical infrastructure of communications, logistics, housing
> and basic education that none of our Asian rivals come close to
> possessing: the fact we do not use this infrastructure well is,of
> course, a liability but that is the fault of the governing classes,
> not a flaw in the infrastructure.
> 6. Millions of entrepreneurs and potential entrpreneurs, capable
> of astonishing achievement when allowed to perform
> I suggest that after we very painfully reach bottom, whenever that
> is ,these 6 great national assets under new national, state and local
> leadership will form the basis for not just renewal but true greatness.
On May 21 06:13 PM socphd71 wrote:
> Great article. User 353732 doesn't seem to understand it. Mr.
> Kim says that a declining currency is a problem which is difficult
> to overcome. User 353732 claims that better leadership will save
> the US. Will it also save the US empire, now in significant decline
> and an enormous drain on US resources? Obama is about as much of
> an imperialist as Bush was. Our resources will continue to go down
> the drain in far off countries. Mr. Kim says that our currency will,
> under such circumstances, continue to weaken.
>
> China, the US' major enemy, enjoys a much stronger currency. China
> also seems to be developing a superior technological work force and
> base. Granted, their demographic profile is much weaker and the
> country bears an enormous pollution burden.
>
>
Most currencies around the world is pegged against the dollar
All commodities are priced in US$
Most of east – west global trade is done in US$
Most people working abroad accept pay in US$.
Most central banks around the world conceder the US$ as the reserve currency of choice in time of trouble.
We all worship the dollar, and will keep on doing so.
As for Dubai and all other GCC state and all surrounding nations, their currency is glued to US$ with a fixed exchange rate (they don’t dare to change due to many reasons). The US$ is the most respected currency and is widely accepted par to local currency.
I Also live there and don’t see anyone laughing at the dollar, in fact we worship it here.
On May 21 04:00 PM Arod's LyingFace wrote:
> Thanks for the good read. It's a bad sign when businesses in Dubai
> laugh at the dollar.
>
> I am not sure about Gold as a safe play. Gold has quadrupled in value
> in the last 8 years or so.
>
> Where do i put my my money in an environment of slow growth, a weak
> dollar and rising staple prices? tech stocks? they are the only ones
> i really have any faith in
Our history seems to indicate otherwise. While everyone says "it's different this time", one thing that's not different (I hope) is the great contribution that immigrants make to this country. First it was the western europeans. Heck, we wouldn't have NASA if not for German and Italian immigrants.
In recent decades, this country has been blessed with massive (and under-reported and under-appreciated) contributions from Asia Pacific immigrants as well as those from the Middle East and greater India region. This story continues to be untold by the press.
We've got 535 incompetent boobs in Congress and thousands more in bureaucratic positions that are sucking the lifeblood from productive citizens, but I'm hoping our history and immigrant-friendly policies will overcome the political class.
On May 21 05:17 PM User 353732 wrote:
> You have ably described our continuing descent into a dark canyon.
> I agree that we are not yet at the bottom ,or even close to the bottom,
> of the canyon. However, in my view, it is not a Box Canyon: there
> is a long, slow, way out of the canyon onto the other side.
> We have 6 great national strategic assets that the governing elites
> will not be able to destroy. They are:
> 1. A population of over 300 million people and growing. People are
> an asset(when properly led and motivated). Our national demographic
> profile is greatly superior to Europe, Japan, Russia or China
> 2. Vast arable land(and excellent ,if poorly managed, water resources)
> to feed a world that wants more and better food
> 3. A tremendous endowment of natural resources, esp. energy resources
> ( no nation matches the diversity, quality and sheer quantity of
> America's energy resources.)
> 4. A depth and diversity of technolgical skills unmatched by any
> nation in history and well ahead of our competitors
> 5. A physical infrastructure of communications, logistics, housing
> and basic education that none of our Asian rivals come close to possessing:
> the fact we do not use this infrastructure well is,of course, a liability
> but that is the fault of the governing classes, not a flaw in the
> infrastructure.
> 6. Millions of entrepreneurs and potential entrpreneurs, capable
> of astonishing achievement when allowed to perform
> I suggest that after we very painfully reach bottom, whenever that
> is ,these 6 great national assets under new national, state and local
> leadership will form the basis for not just renewal but true greatness.
US had huge advantage over rest of the world, at the end of WWII – US end up with 40% of world GDP and 80% of gold reserves. In the last 75 years rest of the world has caught up with us – capital, infrastructure, political stability, technology. Far from having a lead, US lags today especially in capital – it is the largest debtor nation in the world. You can only attract only so much capital if you continue to run huge debts.
Creditor nation’s currency is sought – that is how Britain gained and then lost its position, and now US too will. May not happen overnight – but not so slowly and steadily.
Is that actually true? I think not.
Is Norway "a strong nation"?
How about Kuwait?
Singapore?
All these nations have or have had strong currencies, without being "strong nations".
Would you want to buy Saudi Riyals, bearing in mind that the threat of violent revolution is about as salient as their massive oil reserves?
thank you for sharing your insights and knowledge here.
you are obviously very learned and see very long term.
but i have question for you:
you wrote "US dollar is still bound to go up higher ... Euro$ starts going down by the second half of this year or early next year. More likely in parity with the US$."
and then you wrote: "We have more than 70% probability rate of heading into a big rally (equities) lasting at least 5 years ...
On May 22 04:36 AM aarc wrote:
> You have to look at the monthly chart of US dollar to be able to
> analyze where the highest probability direction will be.
>
> Looking at the daily chart will only show you the trees and not the
> forest.
>
> US dollar is still bound to go up higher after this prolonged-consolidation
> has completed. Day-to-day price action will confuse many analysts
the US$
> will be headed upwards as the Euro$ starts going down by the second
> half of this year or early next year. More likely in parity with
> the US$.
>
>
> We have more than 70% probability rate of heading into a big rally
> lasting at least 5 years after this 9 year-old expanded flat of Dow
> Jones has completed it's course of actions.
>
> Don't invest in this severe downturn and you might commit the biggest
> investment mistake in your lifetime. Economic crisis (~investment
> opportunity) of this magnitude don't happen very often in one's lifetime.
thank you for sharing your insights and knowledge here.
you are obviously very learned and experienced.
but i have question for you:
you wrote "US dollar is still bound to go up higher ... Euro$ starts going down by the second half of this year or early next year. More likely in parity with the US$."
and then you wrote: "We have more than 70% probability rate of heading into a big rally (equities) lasting at least 5 years ... "
So are you saying that the USD will strengthen and the US stock markets will also go up at the same time?
US is entering another Golden Age? Strong USD and stock markets?
Please enlighten us. Thank you.
On May 22 04:36 AM aarc wrote:
> US dollar is still bound to go up higher after this
>prolonged-consolid... ....
>the US$ will be headed upwards as the Euro$ starts going
>down by the second half of this year or early next year.
>More likely in parity with the US$.
> We have more than 70% probability rate of heading into a big rally
> lasting at least 5 years after this 9 year-old expanded flat of Dow
> Jones has completed it's course of actions.
>
> Don't invest in this severe downturn and you might commit the biggest
> investment mistake in your lifetime.
The US has far more advantages over other economies.
1.Political Stability.
2.Democracy and freedom.
3.Rule of Law.
4.Militery might.
5.Hard working people that enjoy life and consume.
6.Brains being local or imported, they all want to live the American Dream.
7.Leading technology and industry.
8. Land and natural resources
9.Geographical independence and no political or military conflict at bay.
10.No religious, political or racial tension among citizens, they are all equal in front of the law.
11. this list can go on forever,
Tell me if china posses any one of these virtues,
A weak currency will eventually be a strong currency, yes things need to be worked at, but as a nation the US remains supreme.
www.wealthalchemist.co.../
US economy and dollar is still in great trouble, no matter what the wall st said earlier. China already entered their bull cycles, but they cannot yet save the world. RMB is not yet a strong currency at this economic cycle as an export oriented country.
The concept of transforming over the last 20 years into a domestic, service-based economy is an idiotic one. The idea of selling your services to your neighbor, who will then sell his to you, works only so long as neither of you stops spending. It does, however, help explain the government's appetite for money supply inflation over the last 9 years.
As for number ten: Try asking a Muslim living in America how 'equal' before the law he feels. Try being polite and respectful to him when asking him though rather than waterboarding him.
On May 23 01:58 PM ecoco wrote:
> A strong currency is not everything,
> The US has far more advantages over other economies.
> 1.Political Stability.
> 2.Democracy and freedom.
> 3.Rule of Law.
> 4.Militery might.
> 5.Hard working people that enjoy life and consume.
> 6.Brains being local or imported, they all want to live the American
> Dream.
> 7.Leading technology and industry.
> 8. Land and natural resources
> 9.Geographical independence and no political or military conflict
> at bay.
> 10.No religious, political or racial tension among citizens, they
> are all equal in front of the law.
> 11. this list can go on forever,
>
> Tell me if china posses any one of these virtues,
>
> A weak currency will eventually be a strong currency, yes things
> need to be worked at, but as a nation the US remains supreme. <br/>
On May 23 01:58 PM ecoco wrote:
>
> A weak currency will eventually be a strong currency, yes things
> need to be worked at, but as a nation the US remains supreme.
It will be years before you can fly a plane made by Chinese aerospace fitted with Chinese engines and run by Chinese hardware and software, and not to forget to take Chinese pill to overcome you fear. You will also pray that all of the above is being copied from tried US technology.
The US are leaders in all sectors, it is just the banks and consumers got a bit over the top and greedy, the car industry is a bit complacent and ill managed and previous administrations stuck their head in the sand.
Come on guys, don’t blow thing out of proportions, it will be over soon.
On May 23 03:02 PM User 357705 wrote:
> Had you been to China you would know how uninformed your comments
> are. The Chinese have all those things and more with the exception
> of number six. And who would blame them for that.
>
> As for number ten: Try asking a Muslim living in America how 'equal'
> before the law he feels. Try being polite and respectful to him when
> asking him though rather than waterboarding him.
>
>
So we are the leaders in ALL sectors, except autos of course.
This is the American attitude - we are the best at everything! And people wonder where we get our sense of entitlement from.
On May 23 03:42 PM ecoco wrote:
> You got to be kidding,
>
> It will be years before you can fly a plane made by Chinese aerospace
> fitted with Chinese engines and run by Chinese hardware and software,
> and not to forget to take Chinese pill to overcome you fear. You
> will also pray that all of the above is being copied from tried US
> technology.
>
> The US are leaders in all sectors, it is just the banks and consumers
> got a bit over the top and greedy, the car industry is a bit complacent
> and ill managed and previous administrations stuck their head in
> the sand.
>
> Come on guys, don’t blow thing out of proportions, it will be over
> soon.
>
On May 23 03:42 PM ecoco wrote:
> You got to be kidding,
>
> It will be years before you can fly a plane made by Chinese aerospace
> fitted with Chinese engines and run by Chinese hardware and software,
> and not to forget to take Chinese pill to overcome you fear. You
> will also pray that all of the above is being copied from tried US
> technology.
>
> The US are leaders in all sectors, it is just the banks and consumers
> got a bit over the top and greedy, the car industry is a bit complacent
> and ill managed and previous administrations stuck their head in
> the sand.
>
> Come on guys, don’t blow thing out of proportions, it will be over
> soon.
>
On May 23 03:53 PM wheelbarrelsofcash wrote:
> "The US are leaders in all sectors, it is just the banks and consumers
> got a bit over the top and greedy, the car industry is a bit complacent
> and ill managed and previous administrations stuck their head in
> the sand"
> So we are the leaders in ALL sectors, except autos of course.
>
> This is the American attitude - we are the best at everything! And
> people wonder where we get our sense of entitlement from.
Soon Boeing commercial aircraft will cede to the superior EADS product as well.
Twenty hours a week at Taco Bell is gonna look pretty good by the end of the year!
On May 23 03:42 PM ecoco wrote:
> You got to be kidding,
>
> It will be years before you can fly a plane made by Chinese aerospace
> fitted with Chinese engines and run by Chinese hardware and software,
> and not to forget to take Chinese pill to overcome you fear. You
> will also pray that all of the above is being copied from tried US
> technology.
>
> The US are leaders in all sectors, it is just the banks and consumers
> got a bit over the top and greedy, the car industry is a bit complacent
> and ill managed and previous administrations stuck their head in
> the sand.
>
> Come on guys, don’t blow thing out of proportions, it will be over
> soon.
>
Charts and technical analysis are useful trade tools but the 21st Century does not belong to the US; civilizations go up/down. In this Century, it has come full circle to China / India. If you take a page out of history, you can understand very quickly why the US needs to continously destablise China through the democracy platform - to prolong US dominance and retain US economic wealth.
Its quite simple - Kim is correct to allude that the US government with Wall Street has been hoodwinking the masses; I thought this current Administration had the best opportunity to decouple from the hostile grasp of Wall Street's Money Changers but alas, Geithner,Volcker and Summers, their point men were accesories to this financial tsunami in the first place - the masses would come out no better, possibly worst as the Money Changers exercise their call/put options on their Devil's Ransom on the masses.
Meanwhile, their own country, the U.S., is full of over-indebted, mass-media indoctrinated, overweight, TV and junk-food addicted morons locked in a death struggle with third-world workers, both imported and abroad, while at the same time they're cheering on the very same economic elites who have plundered their and their country's future.
One thing those elites have proven: control the flow of information and you can control a People.
resiliency and diversity of our citizens and our ingenuity to create
sustainable goods and services that can drive productive growth"?
I appreciate your ability to precisely describe a tree in the forest. But, what made America great was individual liberty guaranteed by a Consitution that the people at the time understood in their DNA because it was born of their experience and blood.
What has made America less great is the discovery by its citizens that they can "vote themselves generous gifts from the public treasury." Each time they voted themselves gifts, they diminished their freedom. They being Individuals, corporations, unions, not for profits, etc.
People can debate the role of a stable currency. China certainly has one. Whether a currency should or can be asset backed or Not? But, America's currency is a symptom of a far greater problem.
American's have traded security, life style in its many components, for freedom. America has been arranging "equality" rather than insuring liberty since early last century.
The mottos of the original 13 colonies who became states are just hollow words today. The citizens of those states have no recent memory of the struggle for freedom out of which those mottos were defiantly .
"Live Free or Die" just a saying today. You can't even teach how they came to be. Those mottos don't evoke the tears and resolve from whence they came. They're dusty, put away, phrases of something in the ancient past. They have no relevance to IPhones and Facebook and the mall.
Will men walk out their door, not knowing when they'll come back today, for their children's sake, knowing it is "their duty, to throw off ...a long train of abuses and usurpations, pursuing invariably the same Object... a design to reduce them under absolute Despotism."
No. Not now. Not here. Not in this place. They have to finish the taxes and then a barbeque to go to.
On May 21 09:45 PM J. S. Kim wrote:
> I don't disagree with you. We basically are saying the same thing
> but in different ways. What makes America a great nation is the strength,
> resiliency and diversity of our citizens and our ingenuity to create
> sustainable goods and services that can drive productive growth.
> Money, in our case, the US dollar, is the means by which we pay for
> these goods and services.
>
> When our monetary system is fraudulent, it takes economic control
> away from our citizens and places it in the hands of the financial
> oligarchs. When our Central Bank attempts to artificially manufacture
> a recovery through inflating assets as they are doing now (significant
> inflation will come in the future), this is not real growth. Thus,
> I am merely stating that a sound monetary system can lead the way
> into economic recovery but an unsound monetary system, unfortunately,
> enables Central Bankers to fool the masses with an illusion that
> recovery is on the way when indeed it is not. To return America to
> the great nation we are, we simply need to implement a sound monetary
> system. Then we would have a sound currency and a strong nation.
>
On May 21 06:42 PM stopwhining wrote:
> Why is it that 50% of all the articles on SA have to start with a
> recap of just how "correct" the blogger has been over the past blah
> blah years?
>
> Try making your point without shilling for yourself, and people might
> take start taking you seriously.
Ecco - your list is laughable (no offense intended)
A strong currency is not everything,
The US has far more advantages over other economies.
1.Political Stability.
2.Democracy and freedom.
3.Rule of Law.
4.Militery might.
5.Hard working people that enjoy life and consume.
6.Brains being local or imported, they all want to live the American Dream.
7.Leading technology and industry.
8. Land and natural resources
9.Geographical independence and no political or military conflict at bay.
10.No religious, political or racial tension among citizens, they are all equal in front of the law.
11. this list can go on forever,
Tell me if china posses any one of these virtues.
# 1 Political stability - we are more unstable than ever before.
# 2 Democracy and Freedom - we are steadily moving toward dictatorship. By the way - the U.S. is a Republic, not a "democracy. " A Republic is based on the rule of law.
# 3 Rule of Law - this is being eroded day by day.
#4 Military Might - yes, we Do have this, although it is used unjustly.
#5 Hard working people who enjoy life and consume - we also have a massive welfare mentality and a sense of entitlement. We consume massive amount of goods that WE DON'T PRODUCE.
#6 Brains - not too much of this coming out of high schools these days.
#7 Leading technology and industry - what world do you live in? Most has been sent overseas.
#8 Land and natural resources - this WE DO HAVE, but our environment -worshipping liberals won't let us touch much of it.
#9 No political or military conflict at bay? Not sure what u mean, but IRAQ, AFGHANISTAN, PAKISTAN ARE MASSIVE FAILURES.
# 10 No religious, politcal or racial tensions? WOW. You must be writing from a cave, or a jail cell.
# 11 The list can go on forever.... YOU ARE RIGHT ON THIS ONE....The Federal Reserve can print money forever. America can/ will go bankrupt (See Peter Schiff, John Williams - Shadow Govt. Statistics, David Walker -former U.S. Comptroller General). GM and Chrysler going bankrupt and sending jobs overseas, Wall Street collapsing due to massive fraud, pension funds running massive deficits, state and local governments running massive deficits with decreased tax revenues, layoffs in the millions, housing prices falling through the roof, health care crisis (Obama said today that health care reform must come THIS year), bond market troubles...........Yes, # 11 is right, the list can go on forever.