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

To: elmatador who wrote (46725)	8/17/2012 1:26:00 AM
From: Wayners	Respond to of 71477

The commonsensical conclusion is clear: If financial assets no longer work for you at a rate far and above the rate of true wealth creation, then you must work longer for your money, suffer a haircut on your existing holdings and entitlements, or both. Actually what you do is you don't buy and hold and/or you don't trade low volatility stuff and you hedge against major losses.

To: elmatador who wrote (46725)	8/18/2012 5:57:30 AM
From: maceng2	Respond to of 71477

Letting money do the hard work instead of working hard for the money was an historical inevitability it seemed. Interesting arithmetic. I had a quick look at this site.... http://www.measuringworth.com/usgdp/ Unfortunately I was not able to download the data table 1912 to 2012 for real USA GDP. I did have the graph generated though and the data is available by clicking on any of the points. I took the data value from every five years up to 2007. 2008 onwards is a "glitch" in the data table -g-. I came up with a growth rate of 3.5% with an indicated error of less then 1% of that value (3.5%). So fairly consistent growth rate over 100 years. Its amazing what exponential growth rates can indicate until one realized all living things (as far as I'm aware) grow at exponential rates. Every tree, blade of grass, animal, and unfortunately it seems my waistline too grows exponentially. If you calculate the growth rate of any tree, especially in its growth to maturity, in a fairly short space of time its branches with be brushing up against the moon causing all sorts of problems with the tides. For example, I am sure the moon crashing into an overgrown tree or mega grass blade is going to have some serious implications !!! The other thing to realize is what that USA stock market covers. It’s taken a while for the USA stock market to go truly international and take over in a global context. There has been lots of room for growth. OTOH lots of companies have gone bust since 1912. It’s the 6.6% number I think that needs a closer look and fully understanding. It’s not a simple glib statement that covers the story. Even in a declining GDP, some stocks will go up; it’s just a lot more will go down. I was a salesman for a while. It’s amazing what tricks you can pull with a little math and some convincing sounding statements. But yes, a whole load of wealth is in the process of being transferred, and world does seem like a really amazingly screwed up place in a financial sense. I would agree with that general statement. What is the problem and what is a preferred solution requires considered analysis though. I like the concept of living sustainable in the world. Humans have done that for a while. Saw some great TV programs about the population that has lived in the Amazon for the last few thousand years.