User 196790

Five Factors That Can Determine the Fate of the U.S. Dollar

jegan, that is an incorrect analysis. the market/dollar divergence is strictly because the dollar is still considered the safe haven for all the deleveraging and liquidating going on in the equity markets as asset bubbles collapse (which is why so much selling is occuring). when the last bubble, us foreign debt, finally collapses, the dollar will collapse, all while the market continues its descent (the economy will continue to contract, and a devalued dollar will weaken purchasing power parity, adding to the contraction's effects).

oil prices will begin to rise again but mainly because it is priced in dollars, which will be declining. oil priced in gold (better indicator of intrinsic price of oil) may even go down, based on demand destruction. oil stocks will not show anything better than a bear bounce, as the commodity bubble of the last 5 years has collapsed and buying stocks in the american equity markets will show no valuable profit (even if you find a way to find stocks that will trend upwards, the profits you are making are in dollars, which would be losing purchasing power, hence lowering your returns, even to a negative level).

the way to make money is to buy gold and buy bear-biased securities (such as put options, ultrashort ETFs, etc) liquidating their capital gains into swiss francs. this is all long term advice.

Five Factors That Can Determine the Fate of the U.S. Dollar

jegan, that is an incorrect analysis. the market/dollar divergence is strictly because the dollar is still considered the safe haven for all the deleveraging and liquidating going on in the equity markets as asset bubbles collapse (which is why so much selling is occuring). when the last bubble, us foreign debt, finally collapses, the dollar will collapse, all while the market continues its descent (the economy will continue to contract, and a devalued dollar will weaken purchasing power parity, adding to the contraction's effects).

oil prices will begin to rise again but mainly because it is priced in dollars, which will be declining. oil priced in gold (better indicator of intrinsic price of oil) may even go down, based on demand destruction. oil stocks will not show anything better than a bear bounce, as the commodity bubble of the last 5 years has collapsed and buying stocks in the american equity markets will show no valuable profit (even if you find a way to find stocks that will trend upwards, the profits you are making are in dollars, which would be losing purchasing power, hence lowering your returns, even to a negative level).

the way to make money is to buy gold and buy bear-biased securities (such as put options, ultrashort ETFs, etc) liquidating their capital gains into swiss francs. this is all long term advice.

The Perversion of American Capitalism

Deflationary pressure will not be an issue in this case, because no one will want to hoard the USD once it is no longer the strongest investment in the world. The GBP will be the global reserve currency in ten years, mark my words.

The Perversion of American Capitalism

I am 100% a proponent of capitalism and I understand the merit in a debt-driven economy, with or without industry. But if this is the system that is to work, then we have to PRIVATIZE rather than SOCIALIZE. We're headed in the wrong direction, there was misdirection of capital when the Fed kept rates low in the 90s and now the only way to fix it is suffer the consequences short term to regain long-term stability. We are socializing further for short-term benefit at the expense of the longer term.

The "American people" will not get us out of this. Their collective merit in intellect and ingenuity is irrelevant. We need libertarian economic policy to get us out. We have to understand that artificially high money supply caused the misdirection of capital that we are falling off of right now. And if we are to remain the economic superpower of the world, we have to let the markets do their work and maintain purchasing power for America.

America works because it is, like everyone is saying, debt-driven. America is the best investment in the history of the world. Or at least it was. We rely on that image for foreign investment and reliance. We rely on that image for purchasing power. We have to prove it now. We need to get Alexander Hamilton on their ass.

Dawg, free market FOR THE WIN.

The Perversion of American Capitalism

I am 100% a proponent of capitalism and I understand the merit in a debt-driven economy, with or without industry. But if this is the system that is to work, then we have to PRIVATIZE rather than SOCIALIZE. We're headed in the wrong direction, there was misdirection of capital when the Fed kept rates low in the 90s and now the only way to fix it is suffer the consequences short term to regain long-term stability. We are socializing further for short-term benefit at the expense of the longer term.