Weve seen how well an economic union works among countries with similar political and socio-economic conditions--the EU. So now you expect a union to work among countries with different political systems, different religions and languages, different geographic regions, and different demographics? Lol
The EU economic model is well suited for non democratic unions.
Folk have been wishful for the demise of the USA since 1776. Even as we try to defeat ourselves, we shall retain dominance for long after you and I push daisies from below.
"won't happen in my life time so it does not matter." Kinda selfish and narcissist.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
@cohodk said:
Since 2000, the rand has lost 80% of its value against the dollar. The rupee and real have lost 65% and the yuan has lost 25%.
In your world that is winning?
Yet they are all now looking to divorce themselves from the dollar. Sanctions that resulted in outright theft of foreign dollar holdings was the final straw for many of them.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
One of the things I've come to realize through the years... is nothing remains the same. There is always change. To predict the future is rather futile.... at least for me. So it is for the US dollar. There sure is an attack to try to diminish it's standing in more and more places in the world.
With any bet, there is a winner... and a loser.
"Everyone has a plan, until they get punched in the face".
@cohodk said:
Since 2000, the rand has lost 80% of its value against the dollar. The rupee and real have lost 65% and the yuan has lost 25%.
In your world that is winning?
Yet they are all now looking to divorce themselves from the dollar. Sanctions that resulted in outright theft of foreign dollar holdings was the final straw for many of them.
Lol. Let them. They will fail. You place faith in strange places. Competition only makes one stronger. Stop being a weak defeatist.
"won't happen in my life time so it does not matter." Kinda selfish and narcissist.
Not my quote, but you're right again. I don't care about everyone. And neither do you, nor does anyone else.. We can't be honest to others until we are honest with ourselves. Stop pretending.
The competition is relatively small currently and individually, but by joining together they will have much greater impact. Even France (TotalEnergies) is now accepting Yuan for their oil and LNG sales to China and avoiding the dollar.
Many foreign countries know that China has the biggest market for trade in the world, and they will benefit from working directly with China and avoiding US dollar exchanges and sanctions. Recently, Saudi Crown Prince Mohammed bin Salman and Chinese President Xi Jinping also agreed to increase cooperation on energy and trade, including Saudi Arabia selling oil to China in yuan.
Several key developments to reduce the petrodollar influence have happened just in the last month. I am surprised so many do not want to see what is really happening.
@Goldminers said: I am surprised so many do not want to see what is really happening.
Every business and finance person who works in the global economy is aware that the dollar is gradually losing its primary status as global reserve currency. This is not big news, and it is fundamentally a good thing.
Folk have been wishful for the demise of the USA since 1776. Even as we try to defeat ourselves, we shall retain dominance for long after you and I push daisies from below.
@cohodk said:
Since 2000, the rand has lost 80% of its value against the dollar. The rupee and real have lost 65% and the yuan has lost 25%.
In your world that is winning?
Yet they are all now looking to divorce themselves from the dollar. Sanctions that resulted in outright theft of foreign dollar holdings was the final straw for many of them.
Lol. Let them. They will fail. You place faith in strange places. Competition only makes one stronger. Stop being a weak defeatist.
Looks like you have finally accepted the fact that the petro dollar is in trouble. Lots of other facts you will be forced to finally accept in the near future. One of those is that without those foreign debt holders you will be on the hook for all that spending and all that money printing. lol
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
If the use of USD$ wains... how will the other currencies be valued... or what will they be valued against? How will exchange rates be determined and by who?
If the use of USD$ wains... how will the other currencies be valued... or what will they be valued against? How will exchange rates be determined and by who?
As long as there is a country there will be dollars. There value is up for grabs. Everyone's dollars will eventually be rolled into individual CBDC accounts (dollar denomination) and dollar cash will be completely eliminated. CBCS conversion also provides an opportune time to devalue/revalue the currency. The CBDC movement is global and already in process throughout the world. Those that feel this is "a good thing" fail to realize that they will have lost a lot of financial freedom and will be at the mercy of whom ever controls the electronic switch that allows them access to their now completely digital money. Protesting Canadian truckers have already learned what this means.
The first international move is to convert everything to CBDCs. Once done will be the perfect time to create an international (or regional) "currency" similar to what the EU did. At this point all of your above questions will be irrelevant.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
If the use of USD$ wains... how will the other currencies be valued... or what will they be valued against? How will exchange rates be determined and by who?
As long as there is a country there will be dollars. There value is up for grabs. Everyone's dollars will eventually be rolled into individual CBDC accounts (dollar denomination) and dollar cash will be completely eliminated. CBCS conversion also provides an opportune time to devalue/revalue the currency. The CBDC movement is global and already in process throughout the world. Those that feel this is "a good thing" fail to realize that they will have lost a lot of financial freedom and will be at the mercy of whom ever controls the electronic switch that allows them access to their now completely digital money. Protesting Canadian truckers have already learned what this means.
The first international move is to convert everything to CBDCs. Once done will be the perfect time to create an international (or regional) "currency" similar to what the EU did. At this point all of your above questions will be irrelevant.
Thanks... and am glad I am old. That does not sound like a fun future but I get it. Time to buy more bullets and canned food.
If the use of USD$ wains... how will the other currencies be valued... or what will they be valued against? How will exchange rates be determined and by who?
As long as there is a country there will be dollars. There value is up for grabs. Everyone's dollars will eventually be rolled into individual CBDC accounts (dollar denomination) and dollar cash will be completely eliminated. CBCS conversion also provides an opportune time to devalue/revalue the currency. The CBDC movement is global and already in process throughout the world. Those that feel this is "a good thing" fail to realize that they will have lost a lot of financial freedom and will be at the mercy of whom ever controls the electronic switch that allows them access to their now completely digital money. Protesting Canadian truckers have already learned what this means.
The first international move is to convert everything to CBDCs. Once done will be the perfect time to create an international (or regional) "currency" similar to what the EU did. At this point all of your above questions will be irrelevant.
Probably. If you fail to back the CBDC with nothing more than what's backing paper, then I'm a continuing buyer of commodities in any slowdown.
@Downtown1974 said:
I’ve never been a doom and gloom pundit, but the happenings related to the Yuan are quite worrisome. Hyperinflation is on the doorstep now. BRICS will surely be making a play in oil in an effort to box us out.
What happenings ? It's all smoke and mirrors unless you think wealthy CBs, SWFs, individuals, and institutions are goign to trust their money with the Chinese Communist Party. Go ask Mark Mobius about the rule of law in China.
There is not even double-digit inflation, let alone hyperinflation which hasn't been seen in a major industrialized country since the 1920's.
BRICs can barely sell their oil or produce enough of it. More smoke-and-mirrors.
If the use of USD$ wains... how will the other currencies be valued... or what will they be valued against? How will exchange rates be determined and by who?
As long as there is a country there will be dollars. There value is up for grabs. Everyone's dollars will eventually be rolled into individual CBDC accounts (dollar denomination) and dollar cash will be completely eliminated. CBCS conversion also provides an opportune time to devalue/revalue the currency. The CBDC movement is global and already in process throughout the world. Those that feel this is "a good thing" fail to realize that they will have lost a lot of financial freedom and will be at the mercy of whom ever controls the electronic switch that allows them access to their now completely digital money. Protesting Canadian truckers have already learned what this means.
The first international move is to convert everything to CBDCs. Once done will be the perfect time to create an international (or regional) "currency" similar to what the EU did. At this point all of your above questions will be irrelevant.
Probably. If you fail to back the CBDC with nothing more than what's backing paper, then I'm a continuing buyer of commodities in any slowdown.
'FedCoin' will be programmable; our overlords will program it to preclude us from buying PMs, invest in coal stocks and other non-green companies. Not right away. Like everything else, we'll be 'nudged' into their agenda.
@derryb said:
For now all of this bodes well for precious metals. Good possibility that the BRIC solution will involve a peg to gold. When all of this plays out it is very likely that holding gold will be more rewarding than holding dollars. But, as I have said earlier on the forum, all slaves under the dollar system, including those that hold PMs, will suffer with the dollar/'s demise. PMs will only protect the dollars that are tied up in them; all other assets will suffer. Some gold will come in handy to scoop up devalued assets.
Gold's fundamentals are bullish because the number of POTENTIAL middle-income and wealthy buyers of the metal have probably gone up by 8-10% a year the last 10-20 years, up from 2-3% a year from 1950-2000. China alone has TENS of millions of potential buyers of gold and PMs up from hundreds of thousands only 40-50 years ago.
Indian gold consumption after 1947 independence was under 50 tons per year. In the 1960's, as the economy expanded, it averaged 125-150 tons per year. 1990's....about 350-400 tons per year. Now it is 700-800 tons per year.
As the population and per-capita income expand, gold consumption rises. Now do the same excercise for another 1.3 billion people in China.....hundreds of millions in Asia.....hundreds of millions in South America and Central America....Europe...even Africa.
Gold is moving from weak hands to strong hands. The next $3,000 is UP.
Gold is moving from weak hands to strong hands. The next $3,000 is UP.
Reason: lack of faith in the currency's ability to protect wealth.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
@coinpalice: things are not that dismal.
We have huge problems, and they are not being constructively addressed in the current political environment. But any healthy young person who can find a mentor or two has lots to look forward to.
If the use of USD$ wains... how will the other currencies be valued... or what will they be valued against? How will exchange rates be determined and by who?
As long as there is a country there will be dollars. There value is up for grabs. Everyone's dollars will eventually be rolled into individual CBDC accounts (dollar denomination) and dollar cash will be completely eliminated. CBCS conversion also provides an opportune time to devalue/revalue the currency. The CBDC movement is global and already in process throughout the world. Those that feel this is "a good thing" fail to realize that they will have lost a lot of financial freedom and will be at the mercy of whom ever controls the electronic switch that allows them access to their now completely digital money. Protesting Canadian truckers have already learned what this means.
The first international move is to convert everything to CBDCs. Once done will be the perfect time to create an international (or regional) "currency" similar to what the EU did. At this point all of your above questions will be irrelevant.
Thanks... and am glad I am old. That does not sound like a fun future but I get it. Time to buy more bullets and canned food.
Don't forget your bunker and tin foiled hat. RGDS!
If the use of USD$ wains... how will the other currencies be valued... or what will they be valued against? How will exchange rates be determined and by who?
As long as there is a country there will be dollars. There value is up for grabs. Everyone's dollars will eventually be rolled into individual CBDC accounts (dollar denomination) and dollar cash will be completely eliminated. CBCS conversion also provides an opportune time to devalue/revalue the currency. The CBDC movement is global and already in process throughout the world. Those that feel this is "a good thing" fail to realize that they will have lost a lot of financial freedom and will be at the mercy of whom ever controls the electronic switch that allows them access to their now completely digital money. Protesting Canadian truckers have already learned what this means.
The first international move is to convert everything to CBDCs. Once done will be the perfect time to create an international (or regional) "currency" similar to what the EU did. At this point all of your above questions will be irrelevant.
Thanks... and am glad I am old. That does not sound like a fun future but I get it. Time to buy more bullets and canned food.
Don't forget your bunker and tin foiled hat. RGDS!
Even though it takes time, and even though it’s effected by the market and not by the government, isn’t inflation the most likely and most effective reset? I mean, when you have enough inflation, what else do really need?
Andy Lustig
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
@MrEureka said:
Even though it takes time, and even though it’s effected by the market and not by the government, isn’t inflation the most likely and most effective reset? I mean, when you have enough inflation, what else do really need?
inflation is a very slow reset/devaluation of the currency. It does not solve the problem of all the outstanding US debt. Devaluing the dollar by 50% overnight would effectively cut US debt in half.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
@MrEureka said:
Even though it takes time, and even though it’s effected by the market and not by the government, isn’t inflation the most likely and most effective reset? I mean, when you have enough inflation, what else do really need?
inflation is a very slow reset/devaluation of the currency. It does not solve the problem of all the outstanding US debt. Devaluing the dollar by 50% overnight would effectively cut US debt in half.
Try looking at it this way. If the Federal government were to routinely monetize the deficit, i.e., simply print whatever it needs instead of issuing debt instruments, the market would routinely respond to budget deficits with inflation. A perfectly rational and effective continuous market driven “reset”. Issuing debt is a more responsible and less harmful way of doing things, of course, but it only works if the market expects the debt to be paid off one day. If the market comes to think that the debt will never be paid off, it would make sense to respond to debt issuance in exactly the same way as if the deficit were monetized from Day 1, as if the money was simply created out of thin air. And the market seems to be increasingly thinking that way.
Andy Lustig
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
There is not even double-digit inflation, let alone hyperinflation which hasn't been seen in a major industrialized country since the 1920's.
Of course there is double digit inflation, assuming one is using the Govt CPI in use in 1980....the original and real one. This way we can compare apples to apples over any decade since the start of the CPI in 1921 (and back-dated to 1913, the start of the FED). And food prices doubled from 1913 to 1921....the first modern bout of inflation due to FED/CB's.
I was around in 1979-1980 watching rare coins as prices went through the roof due to inflation....gold got to $875 which was a 21X gain over 10 years. The top 5% of rare coins advanced approx 15X from 1975 to 1980. I and everyone else including the govt knew that double digit inflation was in play. 30 yr T-Bond rates went into the upper teens. That's not double digits? And the govt in the past 10 yrs or so finally renegged on those remaining high interest TBills and paid off the owners. And the inflation of the past 6-12 months got to the same insanity as that 1979-1980 period -double digit "real" inflation. But NOT "officially" double digits this time around? Huh? So, let's look at CPI history to help us come up to speed.......
CPI calculations were first "adjusted" in 1983 to ensure that those pesky "high" inflation numbers of 1978-1980 never occurred "again." And after the 1985-1990 inflation, adjusted yet again in the early 1990s because the economists and bean counters apparently didn't do a good enough job in 1983 to ensure it wouldn't go to 10%. Haven't kept up on the changes since then....but John Williams of Shadow Stats has. All his work and assumption are reviewable. And since around 2008 I've linked his information here for anyone who wanted to "see." Shifts to imputed home rents, quality factors, weighting factors, substitution factors (ie beef for steak) and other massaging methods have drastically altered the index. For someone who is so attune to "compounded" interest having saved the stock market by 1941, you should know this stuff backwards and forwards. If the current CPI-U ever gets over 10% again you can bet on additional modifications to lower it.
Govt CPI-U current - 5%
current CPI using pre-1990 method - 8.5%
current CPI using pre-1980 method - 13%.....for those that can't "see"....that's Double Digits.
What's wrong with calculating CPI by the same exact methods used in 1980 and 1993? Perfectly reasonable request.
Apples to Apples.
The 1980 CPI peaked around 15%. That was exceed in 2023 with a 17% high using that 1980 alt SGS method. And from a guy in the street perspective who mainly spends on food, energy, auto's, maintenance/professional fees, subscriptions, rent, insurance they KNOW their cost of living has been in double digits the past year or so. Foods basically up 30% yoy. Even bottled water is up over 50%. And if all averaged out, it's probably been on average at 10% for 10-15 yrs. Only the sheeple buy into the current CPI-U and GDP deflators, and other such wizardry. The CPI-U is purposely loaded up and weighted towards things that are resistant to price changes. And even so, it got out out of control this year to nearly 9% using CPI-U. How do you think a different of 5-8% between old and new CPI methods has affected real consumers the past 30 yrs? Apply that compounding to those effects while you're at. No wonder it's so hard for J6P to get ahead. As John Williams puts it:
In general terms, methodological shifts in government reporting have depressed reported inflation, moving the concept of the CPI away from being a measure of the cost of living needed to maintain a constant standard of living.
So roadrunner, you think we we should compare 1923 to 2023 since that's apples to apples?
Did we have computers in 1923? The internet? Telephones, airplanes and automobiles were still in their infancy, yet you think we should compare costs accordingly?
Like I asked previously....how is it to live in the past?
The one that is making your dollar smaller each day. The day will come that even Americans don't want them.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
The one that is making your dollar smaller each day. The day will come that even Americans don't want them.
De-dollarization is also when the BRICS+Saudi Arabia+Venezuela+Egypt+Iran+Turkey start trading in other currencies besides the US Dollar to settle with their non-USA trading partners.
The new BRICS is....... "BRICS + SAVE IT." And getting longer all the time.
The one that is making your dollar smaller each day. The day will come that even Americans don't want them.
De-dollarization is also when the BRICS+Iran+Venezuela+Egypt+Saudi Arabia+Turkey start trading in other currencies besides the US Dollar to settle with their non-USA trading partners.
The new BRICS is....... BRICS + SAVE IT. And getting longer all the time.
Fear of retribution from the US's military seems to be disappearing. Is superpower status being reduced as well? History will likely show recent sanctions as the turning point in the petrodollar's demise. Just a matter of time before our western "allies" choose new alligances. All of this bodes well for gold measured in dollars simply because the dollar is losing status and losing purchasing power at the same time.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
It matters to those who wish to take steps to protect their wealth (everything they have measured in dollars). The core of this forum is made up of such people. Shame you're not one of them. But hey, good luck when the dollar hammer falls.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
"Many nations are either thinking about — or actually proceeding with — transferring at least a portion of their allegiance, assets and commitments from the ‘Bank of the U.S.’ to the ‘Bank of China’ or elsewhere.”
Another conspiracy theory goes real.
Oops there goes another one. . .
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
@derryb said:
It matters to those who wish to take steps to protect their wealth (everything they have measured in dollars). The core of this forum is made up of such people. Shame you're not one of them. But hey, good luck when the dollar hammer falls.
Havent PMs lost purchasing power over the last decade?
@derryb said:
It matters to those who wish to take steps to protect their wealth (everything they have measured in dollars). The core of this forum is made up of such people. Shame you're not one of them. But hey, good luck when the dollar hammer falls.
Havent PMs lost purchasing power over the last decade?
I do believe they have held value when measured in dollars. I also believe that this is simply because dollars have lost purchasing power over the last decade.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
@derryb said:
It matters to those who wish to take steps to protect their wealth (everything they have measured in dollars). The core of this forum is made up of such people. Shame you're not one of them. But hey, good luck when the dollar hammer falls.
Havent PMs lost purchasing power over the last decade?
I do believe they have held value when measured in dollars. I also believe that this is simply because dollars have lost purchasing power over the last decade.
Then that's the problem...stop "believing". The world ain't Disneyland. Get with reality.
Today it takes more ounces of PMs to purchase almost everything from eggs to houses to cars to stocks than a decade ago. That's loss of purchasing power.
Depends where you are. Here in Colombia I've preserved my purchasing power these years. Someone in Argentina would do even better. I understand in the U.S. if one bought at the very top in 2011 one would be sour.
If you compare most every nation out there that has their own currency, it has basically gone down against gold for the past couple decades. The USDX and some of the major partners in the index (Euro, Yuan, JPY) tend to look more like the USDX when compared against gold (ie a major dip 2011-2020). It does bring up the question of just how accurate (and useful) the USDX is? How and why is it calculated the way it is with many different weighting and % trading partner methods involved? Is it massaged to the govt's benefit like CPI, PPI, Employment Reports, etc. ? Interest rates, sovereign debt, and other factors influence the dollar's strength as well. So the fact that TBTF US Banks and the FED carry huge amounts of exposure to various markets as well as OTC interest rate, currency, and PM derivatives, those all play a role on how the USDX vs Gold chart looks. Those other "smaller country" currencies typically won't have those other influences....hence their charts of currency vs gold look much different.
The U.S. dollar index is calculated via the following formula: USDX = 50.14348112 × EURUSD^-0.576 × USDJPY^0.136 × GBPUSD^-0.119 × USDCAD^0.091 × USDSEK^0.042 × USDCHF^0.036 (note that when the US dollar is not the base value in the currency cross, the value is negative).
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
"What's Good for the Government Isn't Necessarily What's Good for the People."
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
One fiat is stronger against a weaker fiat. Wow. Just Wow. That's as bad as a man competing in women's sports.
Ed Dowd thinks that the dollar will fail "up" because foreigners won't be able to pay off their loans as the dollar gets stronger against the other currencies. He's accumulating cash for later purchases.
Gregory Mannarino thinks that a US default has a 50% likelihood and that silver is the most undervalued asset.
Jim Sinclair has been right all along. Get your long term money out of the system, as much as possible.
Inflation is still high, at 5% if you go by the manipulated government numbers, much higher if you follow John Williams. And inflation will be going much higher because the spending just won't stop - money for the MIC and millions of unskilled & uneducated future democrats (coming soon to a neighborhood near you) - all of that takes a lot of money to fund, and don't forget the necessary skimming by politicians & special interests (including the Fed) to make it all work.
Think about where all the money is coming from. Part of it will come from higher taxes. The rest will come from a keyboard. Poof! Instant spending money for the poorly-run insider banks & govt parasites.
Q: Are You Printing Money? Bernanke: Not Literally
Certainly the debt ceiling is in the news this week. But there is a solution..... that has been done before.... The Weird Gold Trick:
"Right now, the House of Representatives and the White House are playing a game of fiscal chicken to see who blinks first. Maybe we’ll find out the hard way when the bond market and the U.S. economy drive over a cliff.
But it can all be avoided with just one simple phone call. How? One phone call from the Treasury to the Federal Reserve could reprice the Treasury’s gold from $42.22 per ounce (historic cost) to a market level of $2,042 per ounce (today’s price).
That would pull over $550 billion of new spending power out of thin air — without issuing any debt. This was actually done by the Eisenhower administration in the 1950s under similar circumstances. "
So there you go. Probably actually makes more sense than minting that $1 Trillion Dollar Platinum coin. Link to the article:
Comments
The EU economic model is well suited for non democratic unions.
"won't happen in my life time so it does not matter." Kinda selfish and narcissist.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Yet they are all now looking to divorce themselves from the dollar. Sanctions that resulted in outright theft of foreign dollar holdings was the final straw for many of them.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
This is the way.
It was 71% in 2001. Seems obvious it will be less than 50% within the decade.
My US Mint Commemorative Medal Set
One of the things I've come to realize through the years... is nothing remains the same. There is always change. To predict the future is rather futile.... at least for me. So it is for the US dollar. There sure is an attack to try to diminish it's standing in more and more places in the world.
With any bet, there is a winner... and a loser.
"Everyone has a plan, until they get punched in the face".
My approach is to diversify; hope/expect the best, but plan for the worst scenario.
Lol. Let them. They will fail. You place faith in strange places. Competition only makes one stronger. Stop being a weak defeatist.
Knowledge is the enemy of fear
I know this link is Wikiedia....but it does show a lot of info. Where's the competition?
https://en.m.wikipedia.org/wiki/Reserve_currency
Knowledge is the enemy of fear
Not my quote, but you're right again. I don't care about everyone. And neither do you, nor does anyone else.. We can't be honest to others until we are honest with ourselves. Stop pretending.
Knowledge is the enemy of fear
The competition is relatively small currently and individually, but by joining together they will have much greater impact. Even France (TotalEnergies) is now accepting Yuan for their oil and LNG sales to China and avoiding the dollar.
Many foreign countries know that China has the biggest market for trade in the world, and they will benefit from working directly with China and avoiding US dollar exchanges and sanctions. Recently, Saudi Crown Prince Mohammed bin Salman and Chinese President Xi Jinping also agreed to increase cooperation on energy and trade, including Saudi Arabia selling oil to China in yuan.
Several key developments to reduce the petrodollar influence have happened just in the last month. I am surprised so many do not want to see what is really happening.
My US Mint Commemorative Medal Set
@Goldminers said: I am surprised so many do not want to see what is really happening.
Every business and finance person who works in the global economy is aware that the dollar is gradually losing its primary status as global reserve currency. This is not big news, and it is fundamentally a good thing.
SEMPER F'N FI! RGDS!!
The whole worlds off its rocker, buy Gold™.
Looks like you have finally accepted the fact that the petro dollar is in trouble. Lots of other facts you will be forced to finally accept in the near future. One of those is that without those foreign debt holders you will be on the hook for all that spending and all that money printing. lol
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
CBDC Tracker
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
>
100% agree.
Knowledge is the enemy of fear
Newb question
If the use of USD$ wains... how will the other currencies be valued... or what will they be valued against? How will exchange rates be determined and by who?
As long as there is a country there will be dollars. There value is up for grabs. Everyone's dollars will eventually be rolled into individual CBDC accounts (dollar denomination) and dollar cash will be completely eliminated. CBCS conversion also provides an opportune time to devalue/revalue the currency. The CBDC movement is global and already in process throughout the world. Those that feel this is "a good thing" fail to realize that they will have lost a lot of financial freedom and will be at the mercy of whom ever controls the electronic switch that allows them access to their now completely digital money. Protesting Canadian truckers have already learned what this means.
The first international move is to convert everything to CBDCs. Once done will be the perfect time to create an international (or regional) "currency" similar to what the EU did. At this point all of your above questions will be irrelevant.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Thanks... and am glad I am old. That does not sound like a fun future but I get it. Time to buy more bullets and canned food.
Probably. If you fail to back the CBDC with nothing more than what's backing paper, then I'm a continuing buyer of commodities in any slowdown.
What happenings ? It's all smoke and mirrors unless you think wealthy CBs, SWFs, individuals, and institutions are goign to trust their money with the Chinese Communist Party. Go ask Mark Mobius about the rule of law in China.
There is not even double-digit inflation, let alone hyperinflation which hasn't been seen in a major industrialized country since the 1920's.
BRICs can barely sell their oil or produce enough of it. More smoke-and-mirrors.
'FedCoin' will be programmable; our overlords will program it to preclude us from buying PMs, invest in coal stocks and other non-green companies. Not right away. Like everything else, we'll be 'nudged' into their agenda.
fka renman95, Sep 2005, 7,000 posts
Gold's fundamentals are bullish because the number of POTENTIAL middle-income and wealthy buyers of the metal have probably gone up by 8-10% a year the last 10-20 years, up from 2-3% a year from 1950-2000. China alone has TENS of millions of potential buyers of gold and PMs up from hundreds of thousands only 40-50 years ago.
Indian gold consumption after 1947 independence was under 50 tons per year. In the 1960's, as the economy expanded, it averaged 125-150 tons per year. 1990's....about 350-400 tons per year. Now it is 700-800 tons per year.
As the population and per-capita income expand, gold consumption rises. Now do the same excercise for another 1.3 billion people in China.....hundreds of millions in Asia.....hundreds of millions in South America and Central America....Europe...even Africa.
Gold is moving from weak hands to strong hands. The next $3,000 is UP.
Reason: lack of faith in the currency's ability to protect wealth.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
i feel sorry for all the real young people, they wil not be able to live the american dream
@coinpalice: things are not that dismal.
We have huge problems, and they are not being constructively addressed in the current political environment. But any healthy young person who can find a mentor or two has lots to look forward to.
The American Dream will not be stymied by the economy, but rather by society.
Knowledge is the enemy of fear
Don't forget your bunker and tin foiled hat. RGDS!
The whole worlds off its rocker, buy Gold™.
.
Or bury your head in the sand.
Even though it takes time, and even though it’s effected by the market and not by the government, isn’t inflation the most likely and most effective reset? I mean, when you have enough inflation, what else do really need?
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
inflation is a very slow reset/devaluation of the currency. It does not solve the problem of all the outstanding US debt. Devaluing the dollar by 50% overnight would effectively cut US debt in half.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Try looking at it this way. If the Federal government were to routinely monetize the deficit, i.e., simply print whatever it needs instead of issuing debt instruments, the market would routinely respond to budget deficits with inflation. A perfectly rational and effective continuous market driven “reset”. Issuing debt is a more responsible and less harmful way of doing things, of course, but it only works if the market expects the debt to be paid off one day. If the market comes to think that the debt will never be paid off, it would make sense to respond to debt issuance in exactly the same way as if the deficit were monetized from Day 1, as if the money was simply created out of thin air. And the market seems to be increasingly thinking that way.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
Of course there is double digit inflation, assuming one is using the Govt CPI in use in 1980....the original and real one. This way we can compare apples to apples over any decade since the start of the CPI in 1921 (and back-dated to 1913, the start of the FED). And food prices doubled from 1913 to 1921....the first modern bout of inflation due to FED/CB's.
I was around in 1979-1980 watching rare coins as prices went through the roof due to inflation....gold got to $875 which was a 21X gain over 10 years. The top 5% of rare coins advanced approx 15X from 1975 to 1980. I and everyone else including the govt knew that double digit inflation was in play. 30 yr T-Bond rates went into the upper teens. That's not double digits? And the govt in the past 10 yrs or so finally renegged on those remaining high interest TBills and paid off the owners. And the inflation of the past 6-12 months got to the same insanity as that 1979-1980 period -double digit "real" inflation. But NOT "officially" double digits this time around? Huh? So, let's look at CPI history to help us come up to speed.......
CPI calculations were first "adjusted" in 1983 to ensure that those pesky "high" inflation numbers of 1978-1980 never occurred "again." And after the 1985-1990 inflation, adjusted yet again in the early 1990s because the economists and bean counters apparently didn't do a good enough job in 1983 to ensure it wouldn't go to 10%. Haven't kept up on the changes since then....but John Williams of Shadow Stats has. All his work and assumption are reviewable. And since around 2008 I've linked his information here for anyone who wanted to "see." Shifts to imputed home rents, quality factors, weighting factors, substitution factors (ie beef for steak) and other massaging methods have drastically altered the index. For someone who is so attune to "compounded" interest having saved the stock market by 1941, you should know this stuff backwards and forwards. If the current CPI-U ever gets over 10% again you can bet on additional modifications to lower it.
Govt CPI-U current - 5%
current CPI using pre-1990 method - 8.5%
current CPI using pre-1980 method - 13%.....for those that can't "see"....that's Double Digits.
What's wrong with calculating CPI by the same exact methods used in 1980 and 1993? Perfectly reasonable request.
Apples to Apples.
The 1980 CPI peaked around 15%. That was exceed in 2023 with a 17% high using that 1980 alt SGS method. And from a guy in the street perspective who mainly spends on food, energy, auto's, maintenance/professional fees, subscriptions, rent, insurance they KNOW their cost of living has been in double digits the past year or so. Foods basically up 30% yoy. Even bottled water is up over 50%. And if all averaged out, it's probably been on average at 10% for 10-15 yrs. Only the sheeple buy into the current CPI-U and GDP deflators, and other such wizardry. The CPI-U is purposely loaded up and weighted towards things that are resistant to price changes. And even so, it got out out of control this year to nearly 9% using CPI-U. How do you think a different of 5-8% between old and new CPI methods has affected real consumers the past 30 yrs? Apply that compounding to those effects while you're at. No wonder it's so hard for J6P to get ahead. As John Williams puts it:
In general terms, methodological shifts in government reporting have depressed reported inflation, moving the concept of the CPI away from being a measure of the cost of living needed to maintain a constant standard of living.
shadowstats.com/alternate_data/inflation-charts
What De-Dollarization? The Dollar Rules the World https://www.bloomberg.com/opinion/articles/2023-04-13/the-dollar-rules-the-world-now-and-for-the-foreseeable-future
Knowledge is the enemy of fear
So roadrunner, you think we we should compare 1923 to 2023 since that's apples to apples?
Did we have computers in 1923? The internet? Telephones, airplanes and automobiles were still in their infancy, yet you think we should compare costs accordingly?
Like I asked previously....how is it to live in the past?
Knowledge is the enemy of fear
The one that is making your dollar smaller each day. The day will come that even Americans don't want them.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
De-dollarization is also when the BRICS+Saudi Arabia+Venezuela+Egypt+Iran+Turkey start trading in other currencies besides the US Dollar to settle with their non-USA trading partners.
The new BRICS is....... "BRICS + SAVE IT." And getting longer all the time.
Fear of retribution from the US's military seems to be disappearing. Is superpower status being reduced as well? History will likely show recent sanctions as the turning point in the petrodollar's demise. Just a matter of time before our western "allies" choose new alligances. All of this bodes well for gold measured in dollars simply because the dollar is losing status and losing purchasing power at the same time.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Knowledge is the enemy of fear
It matters to those who wish to take steps to protect their wealth (everything they have measured in dollars). The core of this forum is made up of such people. Shame you're not one of them. But hey, good luck when the dollar hammer falls.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Is De-dollarization A Worldwide Run On The Bank Of The United States Of America?
"Many nations are either thinking about — or actually proceeding with — transferring at least a portion of their allegiance, assets and commitments from the ‘Bank of the U.S.’ to the ‘Bank of China’ or elsewhere.”
Another conspiracy theory goes real.
Oops there goes another one. . .
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Havent PMs lost purchasing power over the last decade?
Knowledge is the enemy of fear
I do believe they have held value when measured in dollars. I also believe that this is simply because dollars have lost purchasing power over the last decade.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
The Dollar Is Not Losing Its Status Any Time Soon https://www.bloomberg.com/opinion/articles/2023-04-18/the-dollar-is-not-losing-its-status-any-time-soon
Knowledge is the enemy of fear
Then that's the problem...stop "believing". The world ain't Disneyland. Get with reality.
Today it takes more ounces of PMs to purchase almost everything from eggs to houses to cars to stocks than a decade ago. That's loss of purchasing power.
No conspiracy.....facts.
Knowledge is the enemy of fear
Depends where you are. Here in Colombia I've preserved my purchasing power these years. Someone in Argentina would do even better. I understand in the U.S. if one bought at the very top in 2011 one would be sour.
If you compare most every nation out there that has their own currency, it has basically gone down against gold for the past couple decades. The USDX and some of the major partners in the index (Euro, Yuan, JPY) tend to look more like the USDX when compared against gold (ie a major dip 2011-2020). It does bring up the question of just how accurate (and useful) the USDX is? How and why is it calculated the way it is with many different weighting and % trading partner methods involved? Is it massaged to the govt's benefit like CPI, PPI, Employment Reports, etc. ? Interest rates, sovereign debt, and other factors influence the dollar's strength as well. So the fact that TBTF US Banks and the FED carry huge amounts of exposure to various markets as well as OTC interest rate, currency, and PM derivatives, those all play a role on how the USDX vs Gold chart looks. Those other "smaller country" currencies typically won't have those other influences....hence their charts of currency vs gold look much different.
https://federalreserve.gov/econres/notes/feds-notes/revisions-to-the-federal-reserve-dollar-indexes-20190115.html
The U.S. dollar index is calculated via the following formula: USDX = 50.14348112 × EURUSD^-0.576 × USDJPY^0.136 × GBPUSD^-0.119 × USDCAD^0.091 × USDSEK^0.042 × USDCHF^0.036 (note that when the US dollar is not the base value in the currency cross, the value is negative).
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
It's a Good Thing for Ordinary Americans If the US Loses Reserve Currency Status
"What's Good for the Government Isn't Necessarily What's Good for the People."
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
https://www.reuters.com/markets/currencies/south-africas-rand-hits-new-all-time-low-versus-dollar-2023-05-12/
Booi!!!!
Knowledge is the enemy of fear
One fiat is stronger against a weaker fiat. Wow. Just Wow. That's as bad as a man competing in women's sports.
Ed Dowd thinks that the dollar will fail "up" because foreigners won't be able to pay off their loans as the dollar gets stronger against the other currencies. He's accumulating cash for later purchases.
Gregory Mannarino thinks that a US default has a 50% likelihood and that silver is the most undervalued asset.
Jim Sinclair has been right all along. Get your long term money out of the system, as much as possible.
Inflation is still high, at 5% if you go by the manipulated government numbers, much higher if you follow John Williams. And inflation will be going much higher because the spending just won't stop - money for the MIC and millions of unskilled & uneducated future democrats (coming soon to a neighborhood near you) - all of that takes a lot of money to fund, and don't forget the necessary skimming by politicians & special interests (including the Fed) to make it all work.
Think about where all the money is coming from. Part of it will come from higher taxes. The rest will come from a keyboard. Poof! Instant spending money for the poorly-run insider banks & govt parasites.
I knew it would happen.
Certainly the debt ceiling is in the news this week. But there is a solution..... that has been done before.... The Weird Gold Trick:
"Right now, the House of Representatives and the White House are playing a game of fiscal chicken to see who blinks first. Maybe we’ll find out the hard way when the bond market and the U.S. economy drive over a cliff.
But it can all be avoided with just one simple phone call. How? One phone call from the Treasury to the Federal Reserve could reprice the Treasury’s gold from $42.22 per ounce (historic cost) to a market level of $2,042 per ounce (today’s price).
That would pull over $550 billion of new spending power out of thin air — without issuing any debt. This was actually done by the Eisenhower administration in the 1950s under similar circumstances. "
So there you go. Probably actually makes more sense than minting that $1 Trillion Dollar Platinum coin. Link to the article:
https://zerohedge.com/markets/rickards-weird-gold-trick-could-end-debt-ceiling-showdown