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Panic Buys in Europe threaten depletion of Austrian Mint

Discussion in 'Financial Cents' started by UGRev, May 12, 2010.

  1. UGRev

    UGRev Get on with it!

  2. TnAndy

    TnAndy Senior Member Founding Member

    And more and more are going to figure it out as time goes on......gold and silver will go to astronomical numbers in terms of paper fiat.
  3. fortunateson

    fortunateson I hate Illinois Nazis!

    Maybe, or maybe not. Many think more recession is yet to come - commercial real estate is just *starting* a HUGE default cycle.
    Real estate prices go lower, oil prices go lower (like this past week) therefore dollars are worth more.

    In general, I agree though - metals are a good bet because as things look worse - even in a deflationary cycle - people will seek a safe haven.

    Good idea to diversify - Gold, silver, oil, land, dollars.

    Stocks? pfft...
    Bonds? Ha!
  4. UGRev

    UGRev Get on with it!

    Don't get fooled by the increase in the dollar.. it's only been because a of a massive decrease in other currencies.
  5. fortunateson

    fortunateson I hate Illinois Nazis!

    Which means that your dollar has more power to purchase overseas commodities and labor ;)
  6. UGRev

    UGRev Get on with it!

    I prefer to spend my money here.

    basically it boils down to this.

    You have 2 guys. At the start both guys are 200lbs. Then Person B loses 50lbs and is now 150lbs. Person A is clearly more heavy than Person B, but Person A has maintained the same weight. Does that mean because person B has lost weight that person A has increased his? nope.. The same principle applies here. It does't do anything for the VALUE of the dollar. It may give the appearance of more value through an increase of buying power in comparison to overseas goods, but the dollar is still worth the same.. BUPKISS!

    I'm tired of them playing this economic game of devaluing other currencies without increasing the value of the dollar and instead misrepresenting the value of the dollar by playing it off like the Dollar Index going up has regained value for the dollar. It hasn't.
  7. fortunateson

    fortunateson I hate Illinois Nazis!

    But that's the definition of value! If someone is willing to give you more than they were yesterday for something you have, it's more valuable.

    Sorry, but that's the way it works. I know it's pulled out of thin air and so do you, but so long as I can get an ounce of gold with ~1250 of the things, it has value. I don't care if it green notes, comic books or seashells. If someone will trade for it, it has value.

    As far as the overseas things go - that's life. If someone overseas will give me more gold for my cotton paper, then I need not even send mine overseas, but the guy next door will recognize that value and HE will give me more gold because of what the guy overseas thinks. And as far as reversing that through tariffs, etc...that cat is WAY out of the bag. We'll surely collapse before that happens.

    Now I will say this - holding dollars for any length of time is risky business because it is subject to manipulation and doesn't have any intrinsic value (you can't do anything with it but trade). Also, who the hell knows what's going to happen tomorrow or next week in this climate. I'd even go so far as to say holding dollars is speculative. BUT there is a very real possibility that they will be worth more tomorrow than they are today.

    There were a whole lot of people who bought $800 gold in 1982 and were sitting on a pile of $200 bullion in 1998. I don't think that will happen and if it does, it won't last any length of time, but it's a possibility.


    This a bit dated, but explains how deflation could affect the dollar.
  8. UGRev

    UGRev Get on with it!

    I'm not arguing your definition of value. I'm arguing how it's being achieved. Fraudulently. It's being dicked with by playing economic war games with other currencies because we can't increase the natural value of our currency so we make attempts to inflate other currencies so ours has more buying power in COMPARISON to theirs without truly increasing the BACKING field of the dollar.. you know, because we're not on the gold standard anymore.

    Take a look at the dollars value compared to 1913 and you'll see what I mean. To further my point, should it be necessary to have to make 200k/yr in order to buy a car in cash? I don't think so. Inflation, inflation, inflation.. One of the main reasons we're in this dark place is because basic things are overpriced. Their "value" has remained, but the purchasing power, domestically, has been trashed.
  9. fortunateson

    fortunateson I hate Illinois Nazis!

    "The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.”
    -Vladimir Lenin

    Yeah, we're the ones who are ultimately screwed. Now they're desperately trying to inflate the dollar so that their debt is wiped out. So far they've failed.

    I suspect there is plenty more under the covers that we don't know about - another Greece? Another Lehman?

    I wish I was Amish.
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