TraderMark

Gold Rises, the Dollar Falls: Is This Really a Good Thing?

not to worry, inflation - the most regressive tax there is, is a good thing. Just ask the powers that be.


On Oct 07 02:08 PM Dr. O wrote:

> The value of the dollar relative to other currencies and the prices
> of commodities tend to run in cycles. A currency tends to strengthen
> when the economy is strong and fiscal policy sound. And vice versa.
>
>
> However, it does seem there's something secular, as opposed to cyclical,
> about the relative decline in the dollar, and the relative decline
> in US financial, political, and military influence. We've fallen
> back and other countries are catching up.
>
> Money printing and crazy debt levels always end badly.

Gold Rises, the Dollar Falls: Is This Really a Good Thing?

sorry that should of read 1933 to 1937

Gold Rises, the Dollar Falls: Is This Really a Good Thing?

Oh vey, I am not talking 3 year time frames

1993 to 1937 America is a standard of a policy working?

Yes there are MANY short term solutions - (i.e. print money) to paper ver messes in the near term. We are living through many of those examples the past few decades. Do thing A to hide over mess B, and generate 3-5 years of gains out of it. I dont think thats progress...because of the next set of problems the "solution" creates.


On Oct 07 01:01 PM chap08 wrote:

> I'll help you with some examples then:
>
> 1. USA 1933
> 2. Britain 1990s
> 3. China today
>
> To save you coming back saying "yeah, great prosperity in the 30s",
> take a look at the data for 30 to 33 and then afterwards (until the
> next mistakes were made in 37).
>
> Sounds like, in your case, some research definitely is needed. <br/>

Gold Rises, the Dollar Falls: Is This Really a Good Thing?

I've often said in the 2-3 minute segments these guests show up they should run a ticker streaming under their head shot with their previous quotes and calls. That would be enlightening. I have a few guests in mind who have been wrong for 2 years straight and still get prominent air time.


On Oct 07 10:48 AM a fat panda wrote:

> Mark, I have to laugh at the idea that CNBC woulid hold a guest
> accountable for the stupid cliches that they spout on CNBC. I would
> love it if they would, but they don't even hold their own pundits
> accountable. How many times did Cramer call the bottom?
>
> "You heard it here first. I am making the call. The market has
> bottomed." You not only heard it here first, but you heard it many
> times.

Gold Rises, the Dollar Falls: Is This Really a Good Thing?

those are good points. Which again leads to my question at what point is the dollar falling not going to be a good thing. All those buying risk assets because the dollar is trash - are they going to buy the S&P 500 to 3500 if the $USD falls to say 20?

At some point it stops being a glib game of ruin the dollar into something far more spectacular and punitive.


On Oct 07 10:06 AM relaplan1 wrote:

> Much of the stock market ralley and resilience is a result of investors
> preference for assets over $US. That will continue because nations
> with strong economies will increase interest rates while our Fed
> can not defend $US without stopping the recovery? dead in its tracks.

Gold Rises, the Dollar Falls: Is This Really a Good Thing?

I don't think you live in the US if I recall? So you can be more happy about it than I can.

I only like it from the perspective its the damning evidence of our leadership, but I unfortunately am subject to it, being paid in the currency and living in the States. I might be confusing you with someone else but I thought I recall you living outside the States. If not, sorry for the mixup.


On Oct 07 09:40 AM Hot Richard wrote:

> They are not experts. They are simply on TV.
>
> Those of us who are shorting the US$ expect to be making plays thru
> 2012 (not that I'm predicting anything here). Schiff's books say
> it better than I can, but I also borrow advice from Rothbard, Mises,
> and Hayek.
>
> "...my main goal is holding these precious metals as a store of value
> against a leadership regime intent on destroying our currency to
> create "prosperity". I will repeat this - all those celebrating the
> destruction of the dollar have to ask at what point it stops being
> a "good thing" and turns into a "bad thing"."
>
> Not sure what you mean due to the subjective nature of words. I
> celebrate the dollar destruction because I'm profiting mercilessly
> from it. One man's good thing is another man's bad thing.

Gold Rises, the Dollar Falls: Is This Really a Good Thing?

I am still trying to think of the country that devalued their currency to prosperity. Let me research that and get back to you - nevermind, no research necessary.


On Oct 07 07:21 AM chap08 wrote:

> You say that "deflation (in the real economy) is more the near term
> risk since the U.S. economy is so poor" and yet you, like so many
> others, are scared s**tless by a devaluation in the dollar. That's
> a dollar, by the way, which is still trading higher than it was before
> the crisis began.
>
> When are you going to stop talking about the "destruction of the
> dollar" and see sense? What other economies have got themselves out
> of a situation like ours by strengthening their currency? Answer:
> none. If you're going to say that there haven't been other economies
> with conditions like ours then you'd be wrong. Nothing is ever exactly
> the same but there are strong similarities. Ourselves in the 30s
> is one example. Hoover tried protecting the dollar then and that
> led to a deep depression. Conditions only started to improve when
> the dollar was devalued and inflationary policies implemented. What
> was true then, is still true today.
>
> We need to get the dollar down to something like fair value - a level
> at which we have balanced trade. That will give us exports, jobs
> and a chance to work our way out of these problems. You ask at what
> point the "destruction" of the dollar turns in to a bad thing. We
> are nowhere near it yet.