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

To: ggersh who wrote (31464)	10/27/2010 6:49:00 PM
From: GST	1 Recommendation Read Replies (2) \| Respond to of 71479

Why is it game over when gold hits $20,000? It is simply part of an ongoing wealth redistribution process -- our wealth in relative terms goes down -- and wealth in other places goes up. The American middle class (if we still call it that) will not be able to travel abroad as we do now, buy gold as we do now for jewelry, or buy gas for less than $30 per gallon. Prices in dollars will make Zimbaweans feel right at home -- but life will go on, albeit at considerably lower levels of consumption. A little pullback on US consumerism might not be such a bad thing. But as a nation, the fall from our pedestal will be like being hit on the head with a rock -- it hurts.

To: ggersh who wrote (31464)	10/28/2010 6:49:34 PM
From: benwood	Read Replies (1) \| Respond to of 71479

The last 50 years of gold, and the next 100 years: In 1960: ~35 2010: $35 --> $1340 per troy ounce. 2060: $1350 --> $50,000 per troy ounce. 2100: $50k --> $2,000,000 per troy ounce. But only if our fiscal situation and the behavior of our monetary overlords are as good going forward as they were in the past 50 highly inflationary years. So in reality, it will be much worse. A year ago, an ounce of gold was what, about a quadrillion Zimbabwe dollars, maybe 100 quadrillion (just a few weeks difference one way or the other). It kind of implies the dollar will go bye-bye, doesn't it, and perhaps the nation with go with it. Boiled frogs, anyone?