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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: John who wrote (30871)	10/13/2010 3:33:22 PM
From: DebtBomb	Respond to of 71479

If bread was $5000....gold would be $1,000,000.00, LOL. Ask weimar and zimbabwe.

To: John who wrote (30871)	10/13/2010 3:34:08 PM
From: Horgad	1 Recommendation Respond to of 71479

That’s equivalent to buying gold at $2 an ounce today. Yes gold’s buying power can and does fluctuate, but no way does it ever get that low unless there is a future where world-wide food production collapses and EVERYBODY is starving. In which case you should be building a bunker and hoarding rice and beans, not gold. More likely food becomes unaffordable in some places in some local currencies and so the food is exported instead of being used to feed the local starving population, but those that have gold (even if living in the bad place) will be able eat whatever they want since they hold a currency that is still valued world-wide.

To: John who wrote (30871)	10/13/2010 4:24:37 PM
From: benwood	2 Recommendations Respond to of 71479

If gold is $5000/oz, bread will not be $5000/loaf. An ounce of gold can be exchanged for approximately 500 loaves of bread now. Absent solar nova or population eradicating war/famine/plague, why would grains go up 500x as much as gold? Historically (and hysterically) gold maintains purchasing power, with a few zigs and zags along the way. The good in holding gold is as a means to maintain future purchasing power, versus a collapse in purchasing power ala Weimar/Zimbabwe/China/Yugoslavia/Argentina and so forth. It isn't to get rich; it's to defer purchasing into the future. Currencies are on a slippery slope right now, where a moment of recognition could come at any time in which the masses realize it is a confidence game/ponzi scheme and that it will NOT hold it's purchasing power, nor anything resembling purchasing power. Historically, a paradigm shift in mass thinking can occur over a matter of days or a few weeks, from "Dollars are money" to "Dollars are crap." I don't think that moment is at hand, but the revelation that mortgage fraud is systemic and which has been aided and abetted by the gov't -- and which is HUGE in terms of absolute size and complexity -- could actually be a catalyst to push the masses into recognition of the ponzi scheme. Hence, gold's violent ramp the past few weeks. Last night I noticed that gold spiked on the HK market. It's very unusual for gold to make big moves when the US markets are closed, and I think this change is pretty big. How the rest of the world behaves is of tremendous importance right now w.r.t. the dollar.