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  • smokingman

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    Stocks are up! Whoooo...
    Ok now for the reason.
    Currencies - Currency Converter & Latest Rates at CNNMoney.com
    The dollar is becoming less valuable. So the same stock is worth more "dollars". Sad when the news does not even report why the market is up.
    Long term chart.
    9baa1f.png
     

    Fletch

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    That's impossible. :): There's a deflation right now. (yeah, right :rolleyes:)

    Just to clarify for those who don't know the terms: Inflation is an increase in the money supply, which means that each individual monetary unit has less purchasing power (value) than it did prior to the increase.

    Deflation is a decrease in the money supply, which means that each individual monetary unit has more purchasing power than it did prior to the decrease.

    So when we talk about the falling value of the dollar, we're talking about inflation, which is why CarmelHP's making a joke about the supposed deflation the government's so worried about.
     

    smokingman

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    Well at least we are not the only ones that see this as a problem.
    Here an article from CNBC May 15th,2009

    Dr. Doom: Capitalism Could Fail Like Communism - Economy * Europe * News * Story - CNBC.com

    Nice. I thought China was the largest holder of US debt.It is not(watch the slide show at the bottom of the article).
    1. Federal Reserve and US Intragovernmental Holdings

    That’s right, the biggest holder of US government debt is the United States itself. The Federal Reserve system of banks and other US intragovernmental holdings account for a stunning $4.806 trillion in US Treasury debt. And with recent announcments from the Fed, potentially another $1 trillion may be added to its balance sheet... About a decade ago, the total government holdings were "only" $2.5 trillion.
    It is of course the Federal Reserve bankers! Please please remember the Federal Reserve is not part of our government but a group of PRIVATE bankers.But yet has a .gov website!???
    FRB: FAQs: Federal Reserve System
    And here it talks about how it is a "non profit" yet this "The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year." In other words you can never own it,or sell it.It will never be publicly traded or owned...yet it is the ONLY way any shareholder on this planet can get a GUARANTEED 6% return on every dollar THEY PRINT for the US government.So unless you are rich enough to buy into a regional reserve bank you will never ever in your life see this perk,but not to worry you will not have to pay the money back,your grand kids,and there grand kids will.So by LAW they get 6% of every dollar ever printed in the USA.
    FRB: FAQs: Federal Reserve System
     
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    redneckmedic

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    Jan 20, 2009
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    Greenfield
    this is why i buy gold and silver weekly. it is the only true money. i would suggest everyone purchase some. it will never loose value.

    Doesn't do you any good unless you have gold coins in hand. If you own gold shares (over priced and wothless in SHTF) and gold bricks cant be used to purchase or barder! This is all the results if you invent 700 billion dollars out of thin air and just put it out there with out worry of consiquence!!!

    Read
    Patriots: Surviving the Coming Collapse

    clear.gif
    Author: James Rawles Wesley


     

    smokingman

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    And the slide of the dollar continues.
    Currencies - Currency Converter & Latest Rates at CNNMoney.com
    It fell today against every currency but the Peso,and Hong Kong dollar.

    On another note.The fed says since January 1st we have lost 6% of our GDP this year(first quarter). But they expect things to be better by the end of the year(bs) and the final year end total would be a loss of 1.3 to 2 %. Does anyone else feel like things are getting better? The only way this is going to happen is if the US dollar loses value much more rapidly than it is now. If there is hyper inflation I can see us only losing 1.3 to 2%,with out inflation the figure would be around -10% or more of GDP.I base that on unemployment % and ytd lose of 4%.
    Real estate is a mess. And when MORE commercial paper becomes worthless the banks will have another round of bailouts,because they are "to big to fail".This will further crush the dollar. Add to that 8.9 unemployment,and that number goes up 60k a week or so...does not take a rocket scientist to figure out things are getting worse not better.
    Oh,but some good news. Oil hit 61+ dollars today! Hurray if your are speculating in oil. Bad for all of us.
    If the price of oil where truly supply and demand it would be worth around 12 dollars a barrel right now. Hear me out. We have more inventory in current oil than we have had since 1971.This does not even include the ships sitting off the coast waiting for better prices to unload oil. Obama has put more oil in our strategic reserve in the last month than Bush did in 8 years! Why is gas so much and oil so high then? 2 reasons.One the falling dollar makes it worth more. Two speculators are buying and reselling oil over and over.Each time making a small profit.The idea behind this is simple.Hang on to it long enough and it will be worth more. Then gas...well with all this oil around it should be cheap.But when they are running the refineries at 79%(as they where for the last week)then they can ask for higher prices.The US refineries have not run at this level at any time in our history(other than the oil embargo).:twocents:
    One last thing. Exon is still on course for the second most profitable year in there history(guidance they gave today)and they raised there dividend by another 18 cents per share.
     

    mettle

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    Nov 15, 2008
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    central southern IN
    Doesn't do you any good unless you have gold coins in hand. If you own gold shares (over priced and wothless in SHTF) and gold bricks cant be used to purchase or barder! This is all the results if you invent 700 billion dollars out of thin air and just put it out there with out worry of consiquence!!!

    Read
    Patriots: Surviving the Coming Collapse

    clear.gif
    Author: James Rawles Wesley



    That book was a yuppy fairytale. Sorry, but I wasted money on that thinking I actually might learn something, not be entertained (lightly) by amusing tales of 'goodness' and 'win'. It was like reading a Marvel comic book. The good guys win, just happen to pull it off every time and they live happily ever after.

    The only informational parts were when specific items were mentioned as implemented for use in their 'off grid' home. It gave good ideas in that regard as cross referrence.
     
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    smokingman

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    [ame=http://www.youtube.com/watch?v=GFxZDTAXEhg]YouTube - Federal Reserve - Intentionally Causing Economic Crisis![/ame]

    [ame=http://www.youtube.com/watch?v=cJqM2tFOxLQ]YouTube - High Quality Version: Is Anyone Minding the Store at the Federal Reserve?[/ame]
    [ame=http://www.youtube.com/watch?v=bLCHWhmyn8w&feature=related]YouTube - Who owns the Federal Reserve?[/ame]
    [ame=http://www.youtube.com/watch?v=A4kxTkhwR_Q]YouTube - Ron Paul 0wnz the Federal Reserve[/ame]

    [ame=http://www.youtube.com/watch?v=hWC4fdC2w7k]YouTube - Eye Opener: Who Owns Federal Reserves? American Government?[/ame]
     

    smokingman

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    Ron Paul calls for fed audit,and then end it.
    Ron Paul: What Has The Federal Reserve Done To Our Money? | Ron Paul .com
    He has a nice chart on his website.It show what the dollar is worth from 1913 to current.In 1913 it was worth ...well one dollar.Today .04 cents. 86 cents of every dollar in circulation is actually debt.
    And MCD's is going to start asking for Yen,or Eros soon.
    May 19,2008
    FoxBusiness.com Live Reports on HR 1207, Ron Paul’s Bill to Audit the Federal Reserve | Ron Paul .com
    This is a must watch vid that shows just how screwed the dollar is.7 Trillion in spending by the fed,with NO oversight.They even talk about how the 7 trillion is not even "taxpayer" money but money the fed printed out of thin air....that will not be paid back.It simply makes every other dollar on the planet worth less(nearly worthless as a point of fact).
     
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    smokingman

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    The primary driver of US dollar strength last year was fear of a global economic meltdown, and now that that fear is abating, the US dollar is in serious trouble. Panic-driven dollar buying has morphed into almost-panic-rate dollar selling, and it is now more than unwinding last year's flight to safety play. Sentiment has swung dramatically from wanting the safety of dollars, even at zero return, to being afraid of being caught holding dollars. The markets are genuinely nervous about what lies ahead for the dollar as the global economy recovers and the US has to continue to fund its massive deficits in a world of eventually rising interest rates. The US is the world's biggest debtor and has the most to lose if and when interest rates rise. So far, the Fed has done a miraculous job keeping interest rates at exceptionally low levels, but they can't keep this up forever and, as we discussed yesterday, the bond markets are already under pressure of rising long-term interest rates. We are now at the stage where the US dollar is feeling the pressure of rising interest rate expectations. The longer the Fed keeps flooding the market with dollars to keep short-term interest rates low, the lower the dollar is going to go. The questions soon to be on everyone's mind are: "Do the Fed and the US administration care about the dollar?" and furthermore: "How low are they prepared to let it fall?" I don't think anyone likes the probable answer to those questions at this time.
    *source HoweStreet.com - The Source for Market Opinions
    The Associated Press: Gold, other commodities soar as US dollar tumbles
    Great video in the following article on CNBC.
    UBS - Dangerous Conditions with Gold, Oil, and USD
     
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    smokingman

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    And more VERY bad news for the dollar.
    Yen Advances Versus Dollar as GM Prepares to Declare Bankruptcy - Bloomberg.com
    The Dollar Index fell the most in three weeks on concern the U.S. government will end with a 60 percent stake in GM, the world’s largest automaker for 77 years. The government is “a reluctant equity owner,” the Obama administration said yesterday in a statement.
    GM intends to suspend production at an additional three factories, the administration said, without estimating how many jobs would be eliminated. The automaker has said it aims to cut its U.S. hourly workforce to about 40,000 next year from 61,000 at the end of last year.
    The Dollar Index, used by the ICE to track the greenback against the euro, yen, pound, Swiss franc, Canadian dollar and Swedish krona, fell 1.6 percent to 79.112, the biggest decline since May 8.
    The dollar dropped beyond $1.41 against the euro last week for the first time this year after the Congressional Budget Office projected the U.S. budget deficit would quadruple to about $1.8 trillion.
    ‘Deteriorating Quality’
    “The trend is for a decline in the dollar on the deteriorating quality of U.S. government debt,” said Susumu Kato, chief economist in Tokyo at Calyon Securities, the investment banking unit of Credit Agricole SA.



    “The market is very skeptical of the growing budget deficit.”

    The US dollar fell sharply against its major counterparts during Monday's early Asian trading as the stock markets across the Asian region are trading higher, reducing the appeal of the safe-haven greenback. The dollar tumbled to a new multi-month low against the pound.


    This may become an almost daily thread as I do not see the slide stopping.Ill keep posting updates.
     

    smokingman

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    "Chinese assets are very safe," Geithner said in response to a question after a speech at Peking University, where he studied Chinese as a student in the 1980s.
    His answer drew loud laughter from his student audience, reflecting scepticism in China about the wisdom of a developing country accumulating a vast stockpile of foreign reserves instead of spending the money to raise living standards at home.


    Yep they laughed when the head of the US treasury said the dollar was safe.The other shoe is going to drop soon.


    The complete article
    Geithner reassures China over assets | Reuters
    and US version
    Geithner's Asia Background Shows During His China Trip - TIME
     

    smokingman

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    Currencies - Currency Converter & Latest Rates at CNNMoney.com
    Dollar down against every currency in the world again this week.
    On CNBC they are talking about the stock market hitting 20,000 because of the falling dollar and said "Of course it would be in worthless money".
    Article here.
    CNBC Stock Blog ? Stock Market, Investing ? Currency Crisis Looming ? Don't Short the Market ? CNBC.com - CNBC Stock Blog - CNBC.com
    Also of note Russia is getting out of the dollar as there reserve currency.
    Washington's Blog
     

    Scout

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    Doesn't do you any good unless you have gold coins in hand. If you own gold shares (over priced and wothless in SHTF) and gold bricks cant be used to purchase or barder! This is all the results if you invent 700 billion dollars out of thin air and just put it out there with out worry of consiquence!!!
    I was thinking about this the other day while listening to talk radio (Micheal Savage maybe) and my thought was if the SHTF, what the hell is gold and silver going to do me? How about food, guns, and ammo. I can eat and hunt with that stuff.
     
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