Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Horgad who wrote (96463)	8/19/2008 2:43:18 PM
From: NOW	Respond to of 110194

the only certainty is that most of us will be continue to be fleeced in the greatest transfer of wealth scheme the world has ever known (TM)

To: Horgad who wrote (96463)	8/19/2008 5:53:52 PM
From: GST	Read Replies (1) \| Respond to of 110194

I have never subscribed to the "too big to fail" school of thought. The US is failing -- failing to put its house in order. The barometer of this inability to come to grips with the hubris of superpowerdome is the dollar. Long term, gold does well when the world's reserve currency is backed by incompetent government. Perhaps it is true -- we get the government we deserve and asked for. Perhaps we want "cheap oil" and "cheap credit" and "cheap foreign labor" to fluff our pillows, mix our drinks and fill up our cars -- and we want it so badly that we will borrow every nickel we can get our hands on to pursue our version of "the American dream". We will even go to war for it -- we will call it "defending our way of life" -- or "defending freedom" (of course we borrow the money from China to pay for our wars as well). But whatever you call it the end result is the same -- we are debasing our currency. Yes there will be price movements in gold that shake your sense of direction -- and that is no accident. If the dollar collapses then we will no longer have the American dream -- we will be left with the American hangover. By attacking gold, the US government can pretend to be shoring up the dollar. Tell me when the federal government will be in surplus again and then tell me when the current account will be in surplus and I will tell you when the dollar will have a sustainable rally. My best guess -- not in my lifetime. I just don't think we have the backbone to put our finances in order.