Thread: WARNING.... U.S. Dollar Exchange Article of Interest

Originally Posted by texaslonghorns

I have found the best way to invest in both gold and silver is to buy older coins and not the bullion coins currently being minted. The older coins have a "Collectable Value" and are less likely to be conficated if something went very bad in the US. Buy pre 1930's Peace dollars, morgan dollars, and gold eagles and double eagles. The silver dollars are 90% silver. Buy them in bags called junk silver. You can get the coins I have listed at just a little above the spot price for gold and silver. Never let someone else hold your commodity. Get a saftey deposite box.

Good point,

For the smaller investor, this has always been a great way to build your investment portfolio. I too collect rare gold and silver coins, and they have risen nicely over the years, but when you are talking about investing hundreds of thousands, if not millions for some, always nice to have some solid gold bricks or ingots in your safety box too. (g)

As to other means to take advantage of this soon to rise market is with investments in gold shares, not so much into commodities, although with a little experience, this too can provide huge gains as you can leverage your investments like in FOREX. There are stocks in companies as well who are gold mining, silver mining, uranium, etc., so this too can be a very safe investment vehicle for many.

Good luck to all, Mike

I agree that the dollar is in trouble, but it's much more complicated than just a supply and demand issue as the initial post seems to indicate. If it were just supply and demand, the Treasury could simply remove one dollar from circulation for every dollar no longer used for transactions in one of the dollar banning countries or where it is not used for oil purchases, thereby reducing the money supply and increasing demand. The CBI is increasing the rate of the Dinar by reducing the money supply, but this is not a cure all, but one of many issues that must be addressed.

While the originally posted article is important, I believe Jola's article better represents the problems faced. The reality is that historically others invested in the US because they could consistently receive a good return from a secure investment. The security is gone! In consumer terms, the credit US credit score was 800 or better. That score has dropped drastically because the US has negligently managed its finances and investors can clearly see increasing risk in the US, while returns are increasing inother parts of the world. It won't be long before we can get get a loan.

Sure countries like Iran are doing what they can to hurt the dollar, but they are only in a position to do so because of poor economic policy in the US. A dollar based on sound economic policy cannot be easily manipulated. Unfortunately the time of a sound dollar is gone. For those of you in the US, it's our fault! Maybe not you specifically, but by either accepting or voting for poor economic policy, our country has brought this on itself. We can fix the problem, but not without major changes that I believe the majority of US citizens are unwilling to accept. In fact most citizens don't even get that there is a problem.

If people in the US would turn off their TV for 6 months to a year, they will have to learn to think for themselves. Curiously, I was without TV for about 4 months at one time because the TV broke and my roommate and I just didn't fix or replace it for a while. When we finally had a working TV again we turned on shows that we used to watch and enjoy. The strange thing was that we could barely stand to watch the same shows...they were so bad, but we had been so conditioned by watching TV for so long that our perspective had been severely impacted.

While I may have varying views on the details, thanks Offshore-Wealth for bringing this to the fore. Regardless of how or why the US dollar is declining, the fact is that the decline will continue without major changes and, should our dinar investment be profitable, we all need to consider the best ways to invest our profits.

Originally Posted by celilo

It won't be long before we can get get a loan.

What exactly does that mean? LOL

Originally Posted by danny51

What exactly does that mean? LOL

Well I'm changing the perspective a bit. Basically foreign countries buy treasury securities as an investment, but that also helps the US to carry its debt. From the US perspective, we are really borrowing money at the rate of interest assigned to the treasury security. When no one wants to invest in treasury securities anymore, that essentially means that the US can't get a loan.

Then how do we finance our debt?

Originally Posted by celilo

Well I'm changing the perspective a bit. Basically foreign countries buy treasury securities as an investment, but that also helps the US to carry its debt. From the US perspective, we are really borrowing money at the rate of interest assigned to the treasury security. When no one wants to invest in treasury securities anymore, that essentially means that the US can't get a loan.

Then how do we finance our debt?

Exactly,

It has little to do with supply and demand, it has more to do with no one will be investing in dollar, either treasury bonds or real estate knowing the dollar is in deep trouble. When this happens, which is well under way, it will be a disaster for anyone holding dollar investments. The domino effect will create a run on banks as people start to get smart, but by then it will be too late. Glad I have all my money ties up in other than dollars. (g)

Good luck to all, Mike

I understand what you all are saying about the US dollar/and the US being in trouble, and Texaslonghorns suggested I needed to get a safety deposit box for my new type of investments. But from what you guys are saying, this would not be a smart move either, right? I wouldn't want my investments to disappear in case the bank/banks go under. I have another safe place just in case.

Originally Posted by yardbird

One more thing, I don't understand why TRUTH is so hard a deal. There is too much secrecy and conspiracys and behind the door deals, you scratch my back, I'll scratch yours. It all got screwed up a looooong time ago. That's too bad.
This Post in this Quote has been Moved here: http://www.rolclub.com/iraqi-dinar-d...ory-books.html at the Posters request of mistake in posting it here in the wrong Thread. -neno

Sure there are back door deals, and you hear people grumbling about them all of the time. But yet the vast majority of US citizens tacitly accept this reality because to do otherwise might force changes in the way that they live their daily lives.

The mindset of socialism that is so prevalent in the US. Government is invasive in our lives and most people accept that reality. They accept the easy things that they get from government without questioning the how or why.Generally people are unwilling to make changes that will change their daily lives, or push them out of their comfort zone. It's easier to create your own comfortable reality than deal with that which is actually real.

The US is still the most free country in the world in many ways, but these freedoms have been reduced, and continue to be reduced each day as the role of government continues to expand. I have to laugh (crying underneath) when people advocate socialized medicine in this country. As a former budget consultant in the health care industry, and my subsequent work with private insurers, it is clear that we already have socialized medicine in the US! That's in fact one of the primary reasons that health insurance is unaffordable for so many. Without going into the details, the government is offering health care to many at below market rates. Taxpayers are paying for that care. To add to the misery, the rest of us are further subsidizing that care through exorbitantly high private insurance premiums, or God forbid that you have to pay direct to a health provider.

You may think that I've strayed off of topic here, but this is one of the many domestic economic issues that impact the value of the dollar.

It's no coincidence that the value of the dollar is declining with the expansion of socialism in the US. It was not socialism that brought wealth to the US, but it is socialism that resulted in the absurd US debt, and it will be socialism that destroys our wealth and freedom.

An excellent read that fits nicely in this discussion:

10 Mar 2007
A New American Century?
Iraq and the hidden euro-dollar wars
by F. William Engdahl, USA/Germany

Despite the apparent swift U.S. military success in Iraq, the U.S. dollar has yet to benefit as safe haven currency. This is an unexpected development, as many currency traders had expected the dollar to strengthen on the news of a U.S. win. Capital is flowing out of the dollar, largely into the Euro. Many are beginning to ask whether the objective situation of the U.S. economy is far worse than the stock market would suggest. The future of the dollar is far from a minor issue of interest only to banks or currency traders. It stands at the heart of Pax Americana, or as it is called, The American Century, the system of arrangements on which America’s role in the world rests.

Yet, even as the dollar is steadily dropping against the Euro after the end of fighting in Iraq, Washington appears to be deliberately worsening the dollar fall in public comments. What is taking place is a power game of the highest geopolitical significance, the most fateful perhaps, since the emergence of the United States in 1945 as the world’s leading economic power.

The coalition of interests which converged on war against Iraq as a strategic necessity for the United States, included not only the vocal and highly visible neo-conservative hawks around Defense Secretary Rumsfeld and his deputy, Paul Wolfowitz. It also included powerful permanent interests, on whose global role American economic influence depends, such as the influential energy sector around Halliburton, Exxon Mobil, ChevronTexaco and other giant multinationals. It also included the huge American defense industry interests around Boeing, Lockheed-Martin, Raytheon, Northrup-Grumman and others. The issue for these giant defense and energy conglomerates is not a few fat contracts from the Pentagon to rebuild Iraqi oil facilities and line the pockets of Dick Cheney or others. It is a game for the very continuance of American power in the coming decades of the new century. That is not to say that profits are made in the process, but it is purely a bypro-duct of the global strategic issue.

In this power game, least understood is the role of preserving the dollar as the world reserve currency, as a major driving factor contributing to Washington’s power calculus over Iraq in the past months. American domination in the world ultimately rests on two pillars — its overwhelming military superiority, especially on the seas; and its control of world economic flows through the role of the dollar as the world’s reserve currency. More and more it is clear that the Iraq war was more about preserving the second pillar – the dollar role – than the first, the military. In the dollar role, oil is a strategic factor.

to read more see link:

No 4, 2003

Cheers!
DayDream

Thanks Daydream, that is a very good read. Most times us "regular Joe's" are told, in the media, what we need to know and not always the whole truth. There is always more to a situation than meets the eye.

After reading this more carefully, i now wonder if the Dinar is meant to be kept at a low value and/or how the plan to peg it when/if it is brought back to a reasonable exchange rate level. It's very clear (from the authors opinion) that the Iraq war is about the oil and maintaining US hegemony and the Dollar as the dominant world currency. Countries who say they want to sell oil for Euros instead of 'petro-dollars' is a major problem for the US. IMO, i think some of the delays of having the Dinar back at pre-war levels or levels of neighboring countries, is all about how these countries receive payment for oil. This is a power struggle to keep the Dollar dominant over the Euro (and all other currencies) even though the Euro is gaining momentum. I can't imagine all the variables at work in this situation but i hope they RV the Dinar soon... otherwise i think Iraq (and us as Dinar speculators) is getting the short end of the stick in all of this...

Originally Posted by DayDream

An excellent read that fits nicely in this discussion:

10 Mar 2007
A New American Century?
Iraq and the hidden euro-dollar wars
by F. William Engdahl, USA/Germany
...
DayDream

Good article until it promotes a conspiracy theory as a basis for the war in Iraq. At that point it moves away from facts and to political opinion.

The article should have stuck to the crux of the problem, and the argument that it made very well, that the US is a debtor nation. The dollar is already suffering from that and has been. What politicians label inflation is a way to shift the blame for the declining dollar. Politicians would have you believe that the inherent value of things that we consume, such as food, fuel, etc, has increased. In reality, the inherent value of most things has not changed in the past 30+ years. The buying power of the dollar has eroded. The point being that the decline of the dollar is not some new issue. What's different is that US debt has put us at a disadvantage compared to many other countries.

The stock market is a totally different animal. It's rise has been driven in large by pure supply and demand. With the introduction of the 401k, IRA's, etc. the market suddenly had many more dollars seeking the same number of stock. Surprise, stock prices soared. The problem is that automatic payroll deductions seek stock whether or not the market is healthy or not. Sure investment managers may move money into stocks that they feel provide more value, but the standard for value has declined.

If you could somehow adjust for the distortions created in the stock market created by this new investing phenomenon (by new, I mean within the past 30yrs.) I frankly don't believe that the stock market bubble has had much to do with the value of dollar.

I'm not sure about precious metals as an investment alternative, but I'm not as well educated in this regard. Intuitively, I see precious metals as doing well when their use in manufacturing outstrips the supply, which sounds like that may be the case with silver from a previous post. Of course we have also seen a rise in silver due to exchange traded funds (ETF's). I wish that I had some silver prior to when the silver ETF began trading. I've never really been able to logically satisfy myself with the intrinsic value argument for precious metals. In a world where both food and metal are scarce, I'd rather control the food. I probably should read beyond the dinar forums to better educate myself in such areas.