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 coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (21330)	7/14/2009 7:16:10 AM
From: Robin Plunder	Respond to of 71456

I think hoisington makes good points...but another factor is value of dollar, if the dollar declines gold and silver go up, even if hoisington is correct on all other points...investors will buy tangible assets as protection against declining currency. rp

To: Skeeter Bug who wrote (21330)	7/14/2009 7:16:11 AM
From: Robin Plunder	Read Replies (1) \| Respond to of 71456

I think hoisington makes good points...but another factor is value of dollar, if the dollar declines gold and silver go up, even if hoisington is correct on all other points...investors will buy tangible assets as protection against declining currency. rp

To: Skeeter Bug who wrote (21330)	7/14/2009 8:21:39 AM
From: Real Man	1 Recommendation Read Replies (1) \| Respond to of 71456

Yeah, it's pretty long, and his point is that pending Zimbabwian level printing outstanding debt hole will swallow the economy - err - Ben tripling the base don't matter cause banks won't lend it and it will sit idle. I think he is wrong. It will matter. It will trigger the currency crisis avalanche and bankruptcy of the country. But we'll see. <G> We have tons of examples of screwed up countries under fiat system, and they all ended like.... Argentina. US is just "too big to fail". But, as we have seen in 2008, eventually that does not work and things blow up in a spectacular fashion, namely 1) Dollar crash 2) Government bond crash 3) Financial system meltdown - err - it will cease to exist as banks topple over each other in a derivative domino effect. 4) stock market crash 5) Soaring price of food and energy.

To: Skeeter Bug who wrote (21330)	7/14/2009 9:48:22 AM
From: zamboz	2 Recommendations Respond to of 71456

Skeeter, Visceral response here. <g> Your basic argument is appreciated. I am just getting tired of numbers like those quoted in Mauldin's article. For one, they are totally linear. Two, there is too much talk about taxes and spending in very general terms. Some spending is genuine investment with substantial returns. Some is flushing cash down the toilet. Likewise, we have lots of different taxes and tax credits that can steer the direction of the country. India spent gonzo on higher education back in the 90's and got a gonzo payoff in high tech jobs outsourced from other countries. What if someone had talked them out of it with a "one dollar spent by government means three dollars less spent by consumers" argument? We keep putting blinders on with spending and tax generalizations. We need to dig a few layers deeper.