Anyone willing to bet on a devaluation of the dollar when all the debt bubbles burst?

[Galen]

(05-21-2016, 12:19 AM)Kinser79 Wrote:

(05-20-2016, 10:49 PM)Galen Wrote: There is one simple question:  Will the Fed governors ever accept that Keynesian economics does not work? 

(05-21-2016, 12:19 AM)Kinser79 Wrote: I'm willing to bet the answer is no.  The Fed only has two leavers it can work economically, the interest rates and money printing.  The interest rate is already at its minimum.  That leaves money printing.

(05-20-2016, 10:49 PM)Galen Wrote: If they accept this possibility then a deflationary period is likely followed by a long period of growth.  If not then the US gets to look like Venezuela or Zimbabwe.

I set up my investments with this in mind.  In the reality asserts itself, even against those who think that their wishes mold the universe.  It is only a matter of time.

(05-21-2016, 12:19 AM)Kinser79 Wrote: I'd definitely agree should the Dollar lose reserve status.  The question is then what conditions have to be met for the Dollar to lose that status.  With the USD holding reserve status inflation can be exported.  That is one of major reasons why Argentina, Venezuela, Zimbabwe and other less developed countries have recurring bouts of chronic inflation and hyperinflation.

The world reserve status of the dollar depends on oil being sold only in dollars.  This is the main reason for the hostility towards Iran.  For those of you who doubt this take a look at the reasons for invading Libya even though Ghaddifi ended his nuclear weapons program.  This is been a one of the main reasons for the recent wars in the Middle East.  Consider for a moment that the Food for Oil program sold oil for Euros.

Like it or not, all of the recent wars in the Middle East with the possible exception of Afghanistan have been fought to maintain the petrodollar system.

(05-21-2016, 12:19 AM)Kinser79 Wrote:  

(05-20-2016, 10:49 PM)Galen Wrote: One thing that you can count on is the economic predictions made by the Fed are the exact opposite of what will happen.  They have a lousy prediction record.  Even worse than Eric the Obtuse, which is quite a feat given how clueless he is.

It isn't just the Fed.  Typically I listen to the talking heads on CNBC and other such news outlets in regard to my investments (as small as they are) and typically do the exact opposite of what they say to do.  I've not gone broke by counting on the so-called experts to be wrong.

I especially pull out when people start talking about "X" can only go up in value, because that indicates a bubble mentality has set in and it is a good idea to get out before prices crash.

[/quote]
Clearly, you are a right smart vertebrate which I can't say about many of the people here.

Russian and China are buying as much gold as they can.  Putin may be an authoritarian but by the usual Russian standards he is positively benign.  Please keep in mind that Russia is now pricing oil in Rubles which will help to end the petrodollar system.  It is not if but rather a matter of when the petrodollar system will end.  While Trumps foreign policy is uncertain in many respect the fact that the neocons support Hillary suggest that if she is elected then the wars will continue.

Truth is that people like Eric the Obtuse and Odin couldn't care less as long as the current welfare state is maintained which in the face of a collapse of the petrodollar system is unlikely.  The GIs and Lost that I knew were grateful that they wouldn't live to see this day.  They knew it would happen and spoke of it from time to time and I paid attention to what they said.  It has served me well through the years.  Perhaps there are some here who will benefit from their wisdom as well.