Paul Volcker gives Wall Street a "wake up" call

[LegendKiller]

Actually, he's correct. In the global economy, the dollar has maintained its purchasing power. In fact it has probably gotten better over the past 50 years. Life is only expensive now because we have much higher expectations for life than we did back then.

The question on everyone's mind however is how long the dollar will hold out.

Personally, I think the demise of the dollar is greatly exaggerated. This country and economy is still very robust and self-sustaining. It's not perfect, but what is?

I do love how the nubs come out and try to make educated, knowledgeable, and smart people look dumb, yet really know nothing about this topic themselves. At least, nothing but what they read on some silly goldbug website.

Lots of uneducated regurgitation of bullshit in this thread about gold and not enough realistic and rational analysis of all sides. But what do you expect from an internet forum?

 

[StageLeft]

My bet, literally, is that the US dollar has lost more worth than is fair. I think it's been another hysterical bubble (in this case away from the dollar). I have some Canadian debt to pay and am waiting for it to be worth less as the USD strengths. It's just a hunch but I think it should be worth more than it is. Yes it's more like toilet paper than it was but this is the case for all western nations. Their sh*t stinks, too but you wouldn't know it looking at the currency valuations!

 

[BoberFett]

Personally, I think the demise of the dollar is greatly exaggerated. This country and economy is still very robust and self-sustaining. It's not perfect, but what is?

I do love how the nubs come out and try to make educated, knowledgeable, and smart people look dumb, yet really know nothing about this topic themselves. At least, nothing but what they read on some silly goldbug website.

Lots of uneducated regurgitation of bullshit in this thread about gold and not enough realistic and rational analysis of all sides. But what do you expect from an internet forum?

Self-sustaining, as long as the oil and Chinese made trinkets keep flowing.

 

[LegendKiller]

Self-sustaining, as long as the oil and Chinese made trinkets keep flowing.

The chinese made trinkets could go away and we'd be fine, other sources for them. Sure, we'd have a period of price adjustment, but it wouldn't be long, nor all that much. Oil is a different problem but not insurmountable.

I do get a chuckle out of all of these US Doomsdayers. Buffet and Gates have what? 100 BILLION almost exclusively invested in the US. Don't you think they know something more than the doomsdayers?

As I said before, keep in mind, Buffet's dad and uncle were both doomsdayers.

 

[piasabird]

Gold never changes in value; it is the value of currency that changes value. Whenever the price of Gold goes up, that means you are paying more for the same thing because the value of your money is decreasing.

 

[LegendKiller]

Gold never changes in value; it is the value of currency that changes value. Whenever the price of Gold goes up, that means you are paying more for the same thing because the value of your money is decreasing.

This is bullshit. Gold's price movement is better correlated to the risk perceived in the economy than plain monetary inflation. Perception is nothing more than speculation. Speculation is what causes booms/busts in goods and services. There are dozens of times in history that gold has been the subject of speculative bubbles, this is just yet another one.

As has been said by more famous people: "Risk is not a bet against a currency, it is a bet against Man". (although a poor one at that)

 

[Hayabusa Rider]

For all the good modern economics has done, I suggest we just go back to auguring sheep and save a bundle.

 

[LegendKiller]

For all the good modern economics has done, I suggest we just go back to auguring sheep and save a bundle.

I certainly hope you are joking.

 

[Hayabusa Rider]

I certainly hope you are joking.

Somewhat, but much wisdom from economic pundits and professionals (especially at Volker's level) seems to come from hindsight. The markets aren't static, and being a social creation which defy quantification. Consider all those who are successful in outmaneuvering the market for example. Now one may argue correctly that markets and the economy aren't synonymous, however they aren't unalike. It's more like weather prediction than anything else. One may make forecasts, but does so at one's peril.

Everything from timing to thermodynamics has been used by people who say "we need to do this now " but seemingly had little concept of what was happening when they were in control.

Color me skeptical.