The Crashing of the Dollar

[Bocephus68]

Folks. I have listened to it all. I am a regular listener to Darryl Bradford Smith and Ognir. I have listened to their take on the dollar. But..The problem has been that folks like Peter Schiff and the mainstream media are all out there as well claiming the dollar is going to crash. Peter Schiff has been one guy that is breathless lately on the dollar. That has sent up a serious red flag. Here is my take. I do not believe the dollar is going to crater like folks believe. I have come to the realization that when you have folks like Peter Schiff out there and others in the "know" I am not speaking about Darryl and Ognir at all. Those 2 are straight up guys. But as far as the rest they are suspect. My question is why are they warning us on the dollar?? Is it because they care about us? Hardly. After long thought on this, I contend that they are trying to get the dollar to drop. Then they will go and buy more dollars up for pennies. I hope this makes some sense. There is a huge problem when the main stream media and others are warning us on the dollar. It tells me they must be short on dollars and stand to make a huge profit when it crashes. So that is my take on things. Of course us little folks will get crushed. But.. This I know, they are playing us right now and it is working like a charm.
Good Day!!
T

[Ognir]

Isn't Peter S going to run for Congress next year? :lol:

[abduLMaria]

My question is why are they warning us on the dollar?? Is it because they care about us?

they do work in the financial services industry.  you know the answer to the second question.

the US is both borrowing & printing money (mostly electronically) to 'make ends meet'.  the US gov. has to borrow about $6 trillion this year ($1 trillion + for 2009 budget, $4 trillion to roll over existing debt.)

they're playing games like selling the debt instruments (bonds) to one of the 16/17 banks that have agreements to buy US debt (those banks then normally re-sell those bonds to, for example, the Saudi Sovereign Wealth Fund) - then the US gov. buys back some of those bonds 1 week later (a fancy way to print money).

the rest of the world is taking notice.  China is using their FRN's (Federal Reserve Notes) to buy stuff (gold, steel, real estate) - in excess of their current consumption, as a way to get rid of their US$ without dumping the $ straight into the currency markets.  China has cut their lending (to the US gov.) this year by about 50% compared to previous years.

overall, the dollar is losing value.  The US Gov. is borrowing money to pay the interest on the debt - for us common folks, if we did that, we would be bankrupt.

certainly, there will be insiders who will take advantage of the situation & buy the dollar at a relative low.  just as there were insiders who sold GE short earlier this year, then bought it for pennies on the dollar in March 2009.
http://finance.yahoo.com/echarts?s=GE#s ... E;range=1y

one of the gauge's of the US $'s value is the willingness of the primary $ holders to part with them.  China, for example.  Gold @ $1000 an ounce ?  China will buy all they can get their hands on - they would rather have one ounce of physical gold than $1000 US $.  same when gold is at $1050.

the US Gov. & supporters like Goldman Sachs have been playing games with gold to goose the value of the dollar.  paper gold is one of those games.  the common estimate among people who watch the precious metal (PM) markets is that there is approx. 10 times as much paper gold and silver as physical gold and silver.

the jig is up on that one.  in the last few months, Hong Kong has demanded their gold back from London vaults; Germany has demanded their gold back (4000 tons worth) from vaults in NYC.  Germany kept their gold their during the Cold War because they were nervous about the Soviets.  now, perhaps, they're nervous about the Zio-Brits & the Zio-Americans ?

the problem is, a lot of that gold has been re-sold as paper gold (more Zio-banker financial games.)  i.e., IT'S NOT THERE (the gold that's supposed to be there).  so when the legal owners of the gold demand delivery, it gets tricky for the Zio-bankers.

one of the rumors among PM-watchers is that the US gov. has been melting down gold seized by FDR (22K coins from circulation) to appease people who gave them 24K (.999 pure) multi-kilo bars.  they transferred X tons of 24K gold to a vault in NYC 50 years ago; they get 22K gold bars back.

by the time Obama leaves office, the national debt will be $20 trillion ballpark ($11 trillion when he started, borrowing at the rate of $1 trillion+ a year - if he's there 8 years.)  at 3%, it's easy to do the math - interest on $11 trillion is $330 billion, interest on $20 trillion is $600 billion.  AND - it (the principal) is not being paid back.

yes, the US gov. & the Zio-bankers can & are playing all sorts of games to prop up the tool they use to finance their war games (the $US), BUT they cannot swim upstream against 'the math' forever.

[thirdeyewise]

I am not speaking about Darryl and Ognir at all. Those 2 are straight up guys.

Ognir i don't trust, he reminds me of that tyrant in north korea, i don't know why that is!

[CrackSmokeRepublican]

Shorting the dollar is  a big play right now. But the dollar is the global reserve currency... for now. A crisis could still cause it to rocket. Many European and American banks are bankrupt.  The US dollar is becoming a carry trade item. But how will people borrow cheap dollars and what will they invest these cheap dollars in?  The Bus is off the cliff and people are feeling elated as they rise suspended in mid-air.  Remember Japan recently had dramatic elections lately.
 
Read this daily:
http://jessescrossroadscafe.blogspot.com/

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22 October 2009
Global Perspectives: Steep Market Declines Coming


Steve Meyers makes some very good points. Rather than make them ourselves again, here is his video analysis. We do not agree on every single point of course, but on the main issues and conclusions.

Do not underestimate the power of the Fed when they are monetizing, and especially in a quantitative easing environment. The Adjusted Monetary Base was expanded in a way not seen since the aftermath of the Crash of 1929, and it did temporarily rally the nation out of the early stages of the Great Depression for a time.

The market can go higher if they keep printing at their current rate, unless something happens to break the spell. But for now, they are buying the bond and indirectly stocks, toxic debt from the banks, and whoring the dollar.

However, our portfolios here at the Cafe are on watch for a sharp correction that could be a precursor of a greater decline in November. Cash feels nice, with a few hedged longs.


Here is Steve's analysis.
http://www.youtube.com/v/OAd7sHR1WoE&color1=0xb1b1b1&color2=0xcfcfcf&hl=en&feature=player_embedded&fs=1
http://www.youtube.com/v/pYwycFm95N8&color1=0xb1b1b1&color2=0xcfcfcf&hl=en&feature=player_embedded&fs=1

[Anonymous]

The Fed according to Ben B. has enlarged its reserves.
The Fed is buying up bad instruments and contracts from foreign and domestic banks.
The big question remains...
What is the Fed going to do about the 90 trillion $$$ JP Morgans Chase is holding in derivatives :roll:  :roll: