JJJ

The Myth of the Strong U.S. Dollar

Stop copy/pasting the same stuff on every article. It takes away from good comments that people contribute to these articles.


On Nov 13 11:08 AM PARTICULARMEN wrote:

> Warren Buffett: The financial panic is over (Reuters headline)<br/>
>
> Why Warren Buffett pays $34 billion (market cap) for BNI instead
> max. $24 billion when market DJIA was at 6500?
> Why BRK depends on Goldman Sachs bankers?
> Why Buffett is buying stuff at the peak of the market instead of
> waiting to buy cheaper in a very short time ?
> Does he think DJIA at 10000 is "cheap" ?
> Why he wanna split his highly priced BRK.B shares and make it appeal
> to average John Q. Public investor ?
> He buys BNI at the top to calm the matket panic and "make you buy
> too".
> Why BRK is not selling all their stuff, when W. Buffett knows very
> clear that DJIA will be 5000 soon and will bottom only at 2000 that
> will hit him too?
> Find out in WARREN BUFFET? link
> snipr.com/t7w23

Cramer's Mad Money - When the Facts Change...(10/23/09)

I called the bottom! Compliment me!

Golden Rule: Easy Oil Production Means Cheap Oil, Difficult Production Means Expensive Oil

Good point, but will the price increase be very nice smooth and gradual so that all those alternatives replace exhisting sources in a perfect fashon or will there be very dramatic price and supply shocks to get to that point? Last summer as prices shot up, new supply (barrels of oil pumped out of the ground per day) were not easily seen comming on the market. This makes it seem like we are getting very close to the point of topping out. This senario presents many opportunitys for investors, but I think is nieve to believe that the alternatives will come online perfectly.


On Sep 10 02:01 PM Crashnburn wrote:

> Good article, mostly all good posts. What I take away is that as
> the price of oil goes up, it will naturally (without government intervention)
> start making alternative energy sources more economically viable.
>
>
> Also, as more money is put into altenative energy (not government
> money, btw) there will be breakthroughs, discoveries, and developments
> that will make the alternative energy as cheap as oil was for most
> of the 20th century.
>
> I have no idea what those breakthroughs, discoveries, and developments
> will be, though.

Increased Deficit Spending: We Can't Afford It

I keep hearing that our debt to Gdp ratio is around the 40% range from the CNBC talking heads, and that this latest revised 9 trillion 10 budget deficit will bring us near 80% debt to GDP. Just looking at our current national debt of about 11.3 trillion and a GDP of around 14trillion(rounded up), Isn't the debt to gdp ratio already above 80%(11.3t/14t)? Am I missing something here.


On Aug 26 08:21 AM Paul Price wrote:

> Zach,
>
> I agree that the deficits area huge problem.
>
> Investors don't want to be caught holding rapidly depreciating US
> dollars and the main alternative should be/would be shares of stock
> or commodities that can be marked to market upwards as the US $ heads
> south.

Is the Dollar Dead in the Long Run?

With all the comments on the financial networks and on this site, it appears to me that the USD is a much larger bubble then both tech stocks and the real estate market. It seems like everyone is comming up with excuses as to why the Dollar will NEVER collapse, simply by stating that it is the worlds "reserve currency" is very much like stating internet stocks are fairily priced even though they don't show earnings and real estate always goes up even though the only buyers in the market have to leverage up on sub prime debt to afford a starter home. Our goverment is in the exact same situation. We are insolvent and are on life support thanks to our neverending supply of treasury issuances. We are currently financing our programs with adjustable rate debt and we currently can't afford the "teaser" rates on 2 year treasuries. If we are running huge deficits now, what will happen when rates double or even triple not to mention when the largest problems such as social security and medicare start to appear. Would you continue to lend money to a bankupt business just to make it's payrolls? The fact that treasury prices are so high right now shows all signs of a bubble and one that the FED cannot continue to inflate. It seems mind boggling to me that people will continue to own anything, espeically low interest, taxable treasury bonds denominated in a fiat currency backed by nothing. There is so much talk about how China can't do anything else besides buy treasuries with it's USD holdings and that the USD is the largest world currency which is so large that it is the only place where large amounts of money can flow, and that is EXACTLY the reason that the dollar will collapse. Once people and governments start purchasing assets such as gold mines, oil fields with that massive supply of worthless dollars, the world will rush to get rid of the USD. This trend has already started and the mad dash to the exits will likely occur at a time people least expect. The world will go back to a reserve currency, one backed by gold(since it's the easiest to back) but there will be massive inflation to deal with in the meantime. All fiat currency's go to their true value, 0. (history has a tendency to repeat itself).

Housing: 'We're About to Have a Big Problem'

This is the closest comment I've seen to what could be the biggest shoe yet to drop yet on the housing market that I haven't seen really discussed much anywhere. If the Fed does lose control of inflation and more importantly interest rates(which is almost certian), what will happen to mortage rates? If they double then that will crush affordability to the very market of already overleveraged consumers who are expected to be soaking up all this excess inventory. I have a feeling what we are seeing this summer will be the greatest headfake to a massive plunge in housing prices. Sell now if you can.


On May 27 04:42 PM yellowhoard wrote:

> For those who can hold out long enough, the home mortgage is going
> to become a valuable asset as the dollar is trashed.
>
> You'll be paying back the bank with Monopoly money.

Is the U.S. Solvent?

They create money by writing checks backed by nothing.....The govemernt creates the deficit by spending on who knows what and the Fed creates money by "printing" a check to cover what the goverment has spent.


On Jan 09 09:51 AM Long John Silver wrote:

> When the Fed starts buying up all the new Treasuries that need to
> be issued, exactly how does that result in monetizing the debt? I
> know intuitively that this must be correct, but technically, how
> does the money that the Fed gives the Treasury get into circulation?
> Is it through government expenditures (e.g., procurement on contracts,
> Social Security payments etc?). Insights?
>

Grease Up Your Portfolio with Oil Stocks

geolog,

Can you add more details on this new technology other then just a teaser for another website?

Peak Oil - Are We There Yet?

Excellent point Ronmac. What I don't understand is how many people don't get that the driving issue is flowrates and costs. It doesn't matter how much oil is discovered or in what source, what matters is how much oil is pumped out of the ground on a daily basis and how much it will cost to get out. Trucks and our economy only run on oil that is produced and if bpd demand doesn't fall off a cliff then we are at the mercy of how many bpd is produced.

We have seen more supplies come online each time the price of oil has gone up from 10 to 20...30$ per barrel, but why haven't these latest surges in price brought on massive production increases? Oil finder, at our current consumption rates, if each of those finds were pumped completely in 1 year, they would all be completely depleated in 3. In reality, it may take a year or two to even get the oil out of the ground and if so, we'ld be lucky to replace the bbp output lost from exisisting sources. The only way out of this problem is a drastic reduction in demand or a sudden discovery of a miraculous new alternative energy.

Which brings me to my last point. Why haven't we discovered something already? Oil companies have been spending billions for many years on new technologies and nothing substantial. It would be very nice to have Oil being a renuable source, but why isn't a company in business with that very cause. If someone started a company that could do that, they would be the richest man in the world and their name would be on every history book in the world! And it would have been the same case 10-20-30 years ago. Peak Oil may be just a far out theory with plenty of facts, but why can't I find anything to support the contrary besides opinions.