The dollar is about to be crushed

[HeXploiT]

The market is now secondary.
If you believe that a market rebound in the face of such massive debasement of the currency means the economy will rebound then you are mistaken.
I will say again that this massive influx of new currency is going to destroy the greenback as we know it.
Looking at that dollar chart and laughing?
Get ready folks, the dollar bubble is about to burst.
If only, if only if only they had even wasted those new trillions of dollars on infrastructure or something that would produce a return we might have had a fighting chance.
Instead they(we) are buying up bad debt!
This is not an investment at all.

By this time next year America you will be lucky if your dollar is worth 70¢.
Iceland turns to the IMF but to whom will America turn?

We(Americans) got ourselves into this crisis by borrowing money we could not pay back. Now how do we fix the problem?
By these magical words..."unfreeze lending". WOW!!!
unfreeze lending what an amazing idea!!!! Now everyone will have the money they need!!!

Ever ask the question why is lending frozen? Because we borrowed too much! So the answer is to borrow more?!
What an asinine idea! It is the mark of socialism and it will fail!

We are destroying the dollar. We are destroying the free market. The Democrats do not understand. The Republicans do not understand.
Do you think it can't get any worse?

Listen to what world renowned American investor Jim Rogers has to say.

 

[First]

I suppose based on the odds of how often you're wrong, this is a sign the dollar will continue to strengthen.

 

[miketheidiot]

Originally posted by: Evan
I suppose based on the odds of how often you're wrong, this is a sign the dollar will continue to strengthen.

lulz

 

[palehorse]

Originally posted by: Evan
I suppose based on the odds of how often you're wrong, this is a sign the dollar will continue to strengthen.

:laugh:

so true.

 

[hellod9]

Perry, I tried reading your post...but I got bogged down with a lot of unanswered questions. Maybe if you answer them the post will make more sense to me.

Originally posted by: Perry404
The market is now secondary.

What is the market now secondary to?

If you believe that a market rebound in the face of such massive debasement of the currency

what debasement? How is it massive? What is it massive in relation to?

means the economy will rebound then you are mistaken.

Rebound from what? Mistaken about what?

I will say again that this massive influx of new currency

When did you say this previously? How is it massive? What is new?

is going to destroy the greenback as we know it.

What is going to destroy the greenback? "As we know it?" Who knows WHAT?

Looking at that dollar chart and laughing?

Who is looking at what dollar chart? Who is laughing at what?

Get ready folks, the dollar bubble is about to burst.

What folks? What are they getting ready for? How do you know the dollar is a bubble?

If only, if only if only they

They? Who are they?

had even wasted those new trillions of dollars

What trillions of dollars? What do you mean by 'even'?

on infrastructure or something that would produce a return we might have had a fighting chance.

Who might have had a fighting chance? Fighting against what?

Instead they(we) are buying up bad debt!

Who, specifically do you mean by "they(we)"? Who are "they(we)" buying bad debt from?

This is not an investment at all.

What is not an investment?

This is where I stopped reading.

 

[gsaldivar]

Originally posted by: palehorse

Originally posted by: Evan
I suppose based on the odds of how often you're wrong, this is a sign the dollar will continue to strengthen.

:laugh:

so true.

QFT

 

[StageLeft]

Although you may be right, there are three things you have not considered:

1) Deflation is a very real possibility. Consumer prices dropped 1% recently.
2) Every other major economy is doing the same thing (or most of them). They are all printing money to various degrees, some a little more, some hand over fist like the US.
3) The US' debt and deficit as a percentage of its GDP is still a great deal lower than some other first world nations. Based on what I read yesterday, I'd be more concerned about the pound than the dollar at the moment.
4) Again, you may be right, because I do not feel many people, even among experts, know truly what's going on; most people are shooting in the dark.

 

[PokerGuy]

Originally posted by: Skoorb

4) Again, you may be right, because I do not feel many people, even among experts, know truly what's going on; most people are shooting in the dark.

This is the part that worries me. It doesn't seem like anyone really has a good grasp on what is going on. Instead of someone knowing what the enemy is and trying to fight it, it seems more like someone flailing around in the dark trying to hit whatever comes near, while walking towards a cliff.

Hopefully I'm wrong on that one

 

[KB]

People keep saying the dollar is crashing, then why is it getting stronger? http://finance.yahoo.com/curre...&to=EUR&submit=Convert

Plus China and many other nations wouldn't let the dollar fall so hard because they have so much of it in reserves. They would prop it up as they have done in the past.

 

[Ozoned]

Originally posted by: Perry404

Instead they(we) are buying up bad debt!


By this time next year America you will be lucky if your dollar is worth 70¢.

You know, if you are correct, by this time next year, housing values will rebound and gain $ value due to inflation, and the (you/we) holding the bad debt, (backed by houses) will make a shitload of money. Then we can just start the whole process over again.

 

[Capt Caveman]

:laugh: Perry404, you are always good for a good laugh. Thanks!

Foreign tourists kept home by higher air fares, exchange rate

 

[soccerballtux]

Originally posted by: PokerGuy

Originally posted by: Skoorb

4) Again, you may be right, because I do not feel many people, even among experts, know truly what's going on; most people are shooting in the dark.

This is the part that worries me. It doesn't seem like anyone really has a good grasp on what is going on. Instead of someone knowing what the enemy is and trying to fight it, it seems more like someone flailing around in the dark trying to hit whatever comes near, while walking towards a cliff.

Hopefully I'm wrong on that one

No you're mostly right, the FED has a good idea though; a year ago they saw the upcoming sour loans problems and began taking those as collateral for cash infusions.

The markets are fickle, and there's never a textbook example you can go by, only a kind of a fuzzy idea of what should be done.

Perry404 while sounding doom and gloom is definitely on the money. Deflation is a good thing, weeds out the inefficient players and goes hand in hand with recession (liquidating the labor market, which needs to happen every once in a while). The debt the FED is accruing is not doing anything to enhance our ability to innovate, or to spend-- it's simply propping up overpriced houses, raising the barrier to entry to own a house, which raises the barrier to entry before college grads start purchasing their TVs, sofas, etc; and ultimately investing back into the market. Foreign investors are going to figure out, sooner or later, that we're (as a nation) not making sound financial decisions, that there's no sign of the US government reigning in spending, that we're not taking basic investment101 steps to improve our country's global competitiveness, and sooner or later will stop buying our debt, there will be much better, more secure returns on investment in emerging economies like China.

A couple things need to happen, mostly we need more lower and middle-class investment in the market; that can't happen when homes cost $200k. I don't know why the Fed is fighting this devaluation/deflation, it's a bubble that needs to pop.

 

[HeXploiT]

Originally posted by: Skoorb
Although you may be right, there are three things you have not considered:

1) Deflation is a very real possibility. Consumer prices dropped 1% recently.
2) Every other major economy is doing the same thing (or most of them). They are all printing money to various degrees, some a little more, some hand over fist like the US.
3) The US' debt and deficit as a percentage of its GDP is still a great deal lower than some other first world nations. Based on what I read yesterday, I'd be more concerned about the pound than the dollar at the moment.
4) Again, you may be right, because I do not feel many people, even among experts, know truly what's going on; most people are shooting in the dark.

And little pink elephants can fly.
I'm sorry but deflation does not happen when the printing presses are in full throttle.
Do you know what you're saying?
This idea is a phantom. It does not exist. Please tell me how deflation can possibly occur in such an environment because I don't see it?

 

[StageLeft]

Originally posted by: Perry404

Originally posted by: Skoorb
Although you may be right, there are three things you have not considered:

1) Deflation is a very real possibility. Consumer prices dropped 1% recently.
2) Every other major economy is doing the same thing (or most of them). They are all printing money to various degrees, some a little more, some hand over fist like the US.
3) The US' debt and deficit as a percentage of its GDP is still a great deal lower than some other first world nations. Based on what I read yesterday, I'd be more concerned about the pound than the dollar at the moment.
4) Again, you may be right, because I do not feel many people, even among experts, know truly what's going on; most people are shooting in the dark.

And little pink elephants can fly.
I'm sorry but deflation does not happen when the printing presses are in full throttle.
Do you know what you're saying?
This idea is a phantom. It does not exist. Please tell me how deflation can possibly occur in such an environment because I don't see it?

This relates to POkerguy's question in another thread at the top of the list about why can we not just see deflation solved by printing? I'm not entirely sure--maybe it can be done but the costs of that are massively higher in the long run--but in any case, many experts are talking about deflation and costs ARE going down, regardless of the printing press action currently going on.

 

[First]

Originally posted by: Perry404

because I don't see it?

A shocking revelation.

 

[Hayabusa Rider]

WWRPD?

 

[HeXploiT]

Originally posted by: Skoorb

Originally posted by: Perry404

Originally posted by: Skoorb
Although you may be right, there are three things you have not considered:

1) Deflation is a very real possibility. Consumer prices dropped 1% recently.
2) Every other major economy is doing the same thing (or most of them). They are all printing money to various degrees, some a little more, some hand over fist like the US.
3) The US' debt and deficit as a percentage of its GDP is still a great deal lower than some other first world nations. Based on what I read yesterday, I'd be more concerned about the pound than the dollar at the moment.
4) Again, you may be right, because I do not feel many people, even among experts, know truly what's going on; most people are shooting in the dark.

And little pink elephants can fly.
I'm sorry but deflation does not happen when the printing presses are in full throttle.
Do you know what you're saying?
This idea is a phantom. It does not exist. Please tell me how deflation can possibly occur in such an environment because I don't see it?

This relates to POkerguy's question in another thread at the top of the list about why can we not just see deflation solved by printing? I'm not entirely sure--maybe it can be done but the costs of that are massively higher in the long run--but in any case, many experts are talking about deflation and costs ARE going down, regardless of the printing press action currently going on.

I wish I could answer that question.
I think however there is much we can do by the way of deductive reasoning.

Firstly recognize that the dollars value is relative to other currencies.
How is Europe doing?
They're in as much trouble as the U.S.
If European central banks are using the same inflationary process to prop up their economy this will make the dollar look relatively stronger.

Secondly I believe the price of silver is being artificially held down.
I can't prove this but I know that it is very difficult to buy large quantities of silver.

Thirdly governments have been known to prop each-other up.(Say Japan)

Fourth....short covering. Institutions have been short the dollar for some time and have to cover their asses.

Also think about what effect it might have if hundreds of billions of dollars have been emptied from the market into individuals cookie jars.

Finally, it takes time for the greenback to recognize new value once those new dollars begin hitting the street. The cash influx has only just begun.
Trillions more are on the way.

All this and it's still not clear in my mind. History however should teach us that the market is smarter than the players and if we don't see the reason for sudden increases in "value" of an index, issue or currency then it is probably inflated.

 

[wwswimming]

Originally posted by: Perry404
Ever ask the question why is lending frozen? Because we borrowed too much! So the answer is to borrow more?!

What an asinine idea! It is the mark of socialism and it will fail!

agree with the first part, disagree with the second part.

This is not like any typically socialist country. e.g. Sweden, they
had a similar problem, on a smaller scale, in the early '90's and
dealt with it. let some banks fail, bailed out the rest. and got
back to business.

it's not the mark of socialism. it's a very American outcome.
what's happening in the finance industry is the mark of American
style capitalism.

lending is frozen because so many of the players at the card
table are holding nuclear cards. sort of like the Queen of Spades
when you're playing Hearts, just ... much worse.

also, because reserves have been wiped out by loan losses.

and none of the politicians has the guts to say what you first said,
"Ever ask the question why is lending frozen? Because we borrowed too much! So the answer is to borrow more?!"

but they all know we got into this mess by borrowing too much
money. and they know we're trying to solve the problem by
borrowing more.

 

[HeXploiT]

wwswimming---
I use the term socialism very loosely. Always have.
When using the word I mean very generally letting the government dig its feet deeper into the private sector.
I have always said that the story of capitalism is not over. We're still in the middle of the book.
What Churchill said was true for not only democracy but for capitalism...only much moreso than even he ever knew.
And I must say that just because this outcome is American does not in any way make it "good".

 

[compuwiz1]

Rapunzel Rapunzel!

 

[JS80]

What the last 6 months have taught us is that the US is the LEADER in the global economy and as the US falls, as does the rest of the globe. Why else would the USD have STRENGTHENED since the whole crisis happened?

 

[HeXploiT]

Originally posted by: JS80
What the last 6 months have taught us is that the US is the LEADER in the global economy and as the US falls, as does the rest of the globe. Why else would the USD have STRENGTHENED since the whole crisis happened?

I think that is true to an extent however we will fall much further than most because of our monumental debt.
Clearly other markets are following our lead.
I'm sure China will have no problem filling the holes where we fall short though.

 

[Capt Caveman]

Originally posted by: Perry404

Originally posted by: JS80
What the last 6 months have taught us is that the US is the LEADER in the global economy and as the US falls, as does the rest of the globe. Why else would the USD have STRENGTHENED since the whole crisis happened?

I think that is true to an extent however we will fall much further than most because of our monumental debt.
Clearly other markets are following our lead.
I'm sure China will have no problem filling the holes where we fall short though.

How? By printing more money? Oh wait.

 

[ponyo]

Originally posted by: Capt Caveman

Originally posted by: Perry404

Originally posted by: JS80
What the last 6 months have taught us is that the US is the LEADER in the global economy and as the US falls, as does the rest of the globe. Why else would the USD have STRENGTHENED since the whole crisis happened?

I think that is true to an extent however we will fall much further than most because of our monumental debt.
Clearly other markets are following our lead.
I'm sure China will have no problem filling the holes where we fall short though.

How? By printing more money? Oh wait.

China and India will lead the next great bull market. BTW, I agree with much of what Perry has to say.

 

[LegendKiller]

Originally posted by: Naustica

Originally posted by: Capt Caveman

Originally posted by: Perry404

Originally posted by: JS80
What the last 6 months have taught us is that the US is the LEADER in the global economy and as the US falls, as does the rest of the globe. Why else would the USD have STRENGTHENED since the whole crisis happened?

I think that is true to an extent however we will fall much further than most because of our monumental debt.
Clearly other markets are following our lead.
I'm sure China will have no problem filling the holes where we fall short though.

How? By printing more money? Oh wait.

China and India will lead the next great bull market. BTW, I agree with much of what Perry has to say.

The failed trader agrees with Perry. Nice!