Argentina Tops List Of 20 Signs Of Global Economic Meltdown

[Reneige]

No, they're not meaningless. Your investments in dollar-denominated instruments are going to take a major hit. It does matter. And the comparison with the Soviet Union is apt for the following reasons:

1) Both countries living beyond their means. The Soviet Union had a dilapidated and burueaucratic industrial system while the US has exported big chunks of its own. Hence the presistent current account deficits -- which in any other country would have necessitated major devaluation a long time ago. Just as the Soviet Union had to import to survive, so with the USA today.

2) Both countries defending an ultimately indefensible status quo and caught in political paralysis and ossification.

Dmitry explains it better:

http://www.resilienc...red-collapse-us

Do you realise that it's a mathematical impossibility for all nations to be net exporters? It's a perfectly sound position to be in as long as foreign investors are willing to finance it. Even America's harshest critics (Eg China) are major investors in the US and rate US government bonds in the high end of the investment grade spectrum.

Currencies are ALSO a zero sum game due to the very basic mathematical relation that if one falls, the other that it is being compared to rises. Hence a global portfolio effectively makes currency fluctuations meaningless, to the extent to which that portfolio is balanced against international trade.

It's called hedging

 

[bigbadwolf]

Waiting for a previous post of mine to clear moderation.

 

[nicoenarg]

Do you realise that it's a mathematical impossibility for all nations to be net exporters? It's a perfectly sound position to be in as long as foreign investors are willing to finance it. Even America's harshest critics (Eg China) are major investors in the US and rate US government bonds in the high end of the investment grade spectrum.

Currencies are ALSO a zero sum game due to the very basic mathematical relation that if one falls, the other that it is being compared to rises. Hence a global portfolio effectively makes currency fluctuations meaningless, to the extent to which that portfolio is balanced against international trade.

It's called hedging

Alright, I know you think you know about investment and economic matters but you're wrong...you're wrong because you don't have pretty slides with stories about trains and imperialism.

 

[bigbadwolf]

Do you realise that it's a mathematical impossibility for all nations to be net exporters? It's a perfectly sound position to be in as long as foreign investors are willing to finance it. Even America's harshest critics (Eg China) are major investors in the US and rate US government bonds in the high end of the investment grade spectrum.

Currencies are ALSO a zero sum game due to the very basic mathematical relation that if one falls, the other that it is being compared to rises. Hence a global portfolio effectively makes currency fluctuations meaningless, to the extent to which that portfolio is balanced against international trade.

It's called hedging

You're talking to someone who works as a quant and who's taken a slew of courses in macroeconomics. Save your sententious posts for the economically illtierate. What you're talking is gibberish but I haven't the patience to correct you -- and neither will you listen.

 

[Caliexpat]

Selective statistics? I posted the ENTIRE price history of gold since the end of the gold standard. That's a person's entire investible life. You go ahead and keep waiting if you like. Here let me post it again : http://en.wikipedia....to_Jan_2012.svg

I'm beginning to think that some of you simply don't read the posts that I or other members are writing or simply choose not to understand because you have been so steeped for so long in a certain dogma or indoctrination of thinking that it's simply impossible for you to think otherwise.

Nobody is saying to hold gold for your entire life. Go back to my post where I said it's all about timing. All investing is about timing and about how well you can predict the future. If you see a certain trend forming and you're able to place your bets ahead of time, then that makes you a better investor than the next guy. You don't need a financial background or a degree in economics to know this.

I look at the numbers, the macro economic environment and my own returns. If you had bought gold when it was $200 an ounce, that ounce is worth roughly $1200 today, a 600% increase. If you had sold that ounce in 2011 at its high of $1900, you're talking a 950% increase. And we haven't even seen gold's true value when compared with USD because of the price manipulation. As the paper market begins to break from the physical market as is happening right now, you'll start to see gold rise much higher.

Also, what bigbad is saying about the world moving away from a USD denominated economic model is true. It's not rocket science. If you debase your currency long enough, sooner or later, people don't want to hold your currency anymore hence the reason why they're buying gold! Just look at Argentina.

Why do you think China and Russia and other countries are openly calling for a shift away from the dollar. It may take years to accomplish but the wheels are already in motion and it will happen at some point as it has happened to the previous 4 or 5 reserve currencies. Most likely the IMF will step in and attempt to assert something like the SDR, which is a basket of currencies.

In the short term of course the dollar will benefit as it usually does because it's the best looking house in a really bad neighborhood.

 

[Caliexpat]

Just saw this article which is very telling:

Presenting The Latest Country To Lose Confidence In The Dollar...
http://www.zerohedge.com/news/2014-01-30/presenting-latest-country-lose-confidence-dollar

"Given that Zimbabwe is literally THE poster child for hyperinflation over the last half-century, one cannot understate the irony of their latest announcement.
Just yesterday, the government there announced that the Chinese renminbi (among other currencies) will become legal tender in Zimbabwe."

"The dollar’s share of global reserves has slowly fallen from roughly 75% in 2001, to just over 60% today."

 

[ajoknoblauch]

Just saw this article which is very telling:

Presenting The Latest Country To Lose Confidence In The Dollar...
http://www.zerohedge...nfidence-dollar

[font=Lucida Grande']"Given that Zimbabwe is literally THE poster child for hyperinflation over the last half-century, one cannot understate the irony of their latest announcement.[/font]
[font=Lucida Grande']Just yesterday, the government there announced that the Chinese renminbi (among other currencies) will become legal tender in Zimbabwe."[/font]

[font=Lucida Grande']"The dollar’s share of global reserves has slowly fallen from roughly 75% in 2001, to just over 60% today."[/font]

Certainly everybody will rush to emulate Zimbabwe.

 

[steveinbsas]

That's what people like Steve never seem to realize. In a total collapse food, guns, and ammo are all that will matter. That and having the knowledge of how to acquire more food, guns, and ammo.

What do you think you know about me?

I never once endorsed the idea of buying gold in preparation of a total collapse.

I have previously posted that the only metal I want to have then is lead (as in a good supply of bullets).

The only reason I ever bought gold was to give it as a gift or because I liked a ring (for myself) that my "gold-designed" friend "Giles of Carmel" made.

Your post just serves as another example of why I never get "personal" with the other members here.

Except for the one time I thought a guy was trying to find a "morning after" pill when he used the terms "Spanish fly" in his user name I jumped to the erroneous conclusion that the potential (and obviously unwanted) pregnancy was the result of seduction by giving the girl a sex drug.

AND I WAS WRONG!

And the thread was locked before I could apologize.

 

[sleazemerchant]

No, they're not meaningless. Your investments in dollar-denominated instruments are going to take a major hit. It does matter. And the comparison with the Soviet Union is apt for the following reasons:

1) Both countries living beyond their means. The Soviet Union had a dilapidated and burueaucratic industrial system while the US has exported big chunks of its own. Hence the presistent current account deficits -- which in any other country would have necessitated major devaluation a long time ago. Just as the Soviet Union had to import to survive, so with the USA today.

2) Both countries defending an ultimately indefensible status quo and caught in political paralysis and ossification.

Dmitry explains it better:

http://www.resilienc...red-collapse-us

You keep proving over and over again that you are a howling at the moon conspiracy theorist with almost zero understanding of economics or finance. How can you even begin to compare a dictatorship/ command economy with a democratic market-based economy?. The USSR produced no in-demand value added goods except for AK47's and Stoli Vodka. The USSR was using essentially one commodity (oil) to fund an entire inefficient economic and state apparatus and when the price of that commodity tanked the USSR ship sank. Except for large militaries there was nothing even remotely similar between the USA and USSR.

 

[scotttswan]

Just saw this article which is very telling:

Presenting The Latest Country To Lose Confidence In The Dollar...
http://www.zerohedge...nfidence-dollar

[font=Lucida Grande']"Given that Zimbabwe is literally THE poster child for hyperinflation over the last half-century, one cannot understate the irony of their latest announcement.[/font]
[font=Lucida Grande']Just yesterday, the government there announced that the Chinese renminbi (among other currencies) will become legal tender in Zimbabwe."[/font]

[font=Lucida Grande']"The dollar’s share of global reserves has slowly fallen from roughly 75% in 2001, to just over 60% today."[/font]

Yes they finally added the yuan to a long list of currencies they accept. They also added the Japanese yen, Indian rupee and Australian dollar too.

This includes the previously accepted US dollar, South African rand, Botswana pula and British pound.

http://allafrica.com...1401310190.html

Economic analyst Vince Musewe meanwhile agreed that the average Zimbabwean is unlikely to be affected much by this development, because the preferred currency will remain the US dollar. He said the basis for the RBZ decision was driven by the government's 'Look East' policy.
"The idea is that it makes it more attractive for them (Eastern traders) to come to Zimbabwe and do business in Zimbabwe. So for example someone from China, which is a major investor at the moment, can come to Zimbabwe and use their own currency," Musewe said.
He said the changes will likely only be seen at Chinese markets and shops, but for general Zimbabwean traders "their way of doing business is not going to change because people will still use the US dollar."

oh noes the dollar is crashing Zimbabwe is accepting other currencies.