After reading some of the earlier posts, I think you guys are too kind when it comes to Bernanke. Iâm expecting Bernanke to be a much bigger disaster than Greenspan could ever have been. One need only read Greenspanâs essay, Gold and Economic Freedom, to see that the guy at some stage at least knew what it is all about. Unfortunately for the US the accolades got to him in the 90âs and he just lost it â he must really believe that he is the Maestro. Bernanke on the other hand is just an academic who has very little idea of what the real world is about. He has a smug arrogance about him that is quite dangerous, and like an inexperienced trader who fights the tape because he knows better than the market, Bernanke will drown us all in worthless paper because he knows how to fight deflation. I find his overconfidence to be truly frightening (although I am comforted to a certain extent knowing that my financial exposure to the US has been next to zero for a number of years now). Hopefully, after Bernanke the powers that be (and it wonât be Bush) will come to their senses and do away with the FED altogether, which is something that should have happened a long time ago.
I'm tempted to agree with you. I think the big surprise of the next 50 years will be the conversion of either the USD, Euro, or Renmibi to gold or some other form of hard backing. I vote it is us or the Chinese. When this happens, however, is anyone's guess, but it will happen after a period of protracted financial instability.
At least we'll get money thrown to us by helicopters . "A gift from Helicopter Ben. SDN---Stop Deflation Now!" Anyways studyandtrade, Chinese buy tbonds to keep US long term interest rates low and let the consumer afford Chinese products. A strategic move.
real estate and US dollar crashes. global depression occurs and a decade or so later the yen is the world's reserve currency after countries go back to the gold standard?
Too many of you are too hung up on gold, this talk about paper currency going to toilet paper is gold bug fantasy . If you listen too much to this you''ll start to think we are going back to barter. Get real . Even if gold went back to $1000 , it's unlikely it will hold there IMO, you would be very lucky to get out with 70% of your profits like in 1980 . It's a trading vehicle, not an investment, gold bugs should have figured that by now after sitting for years on an investment that yes doesn't pay any dividend and trends down 70% of the time. It's a damn piece of rock after all and gold jewelry is no longer fashionable in the western world (it's bad taste actually) . Since all are converging to the Western lifestyle, it's likely the so called high demand for the yellow metal will only erode over time