I guess the sarcasm is over your head. I was name calling myself to point out your obvious bias and closedminded attitude. Hence, there is no rational argument to be had. Not only do you have very little idea of what you speak of, your only "contrary evidence" is the fact that hardcore Austrian economists preach doom & gloom and have not been correct. No economist has ever been able to set a timeline for any event in the future, most cannot even get the event correct. But the irony in your statement is heavy. Contrary evidence to your blind belief in the system has occured in history so many times that it is hard to count. History repeats itself, yet mankind still fails to learn from it. So just agree to disagree, cause it's not like I want to see the system crash, it is in my benefit that most remain to be blind believers like you.
Time for a little rerun: ___________ In the early days of the U.S.A., every dollar was exchangeable for 412.5 grains of 90% silver. Paper money was merely a conveniently portable 'place holder'. It was a certificate of entitlement to precious metals held by the U.S. Treasury. Up until 1933, a U.S. dollar represented a fixed amount of silver or gold. During the Great Depression, the government stopped this- but still, one could always exchange paper dollars for silver coinage. In 1965, the government stopped that too. At that point the dollar went from currency to illusion. Since people were already used to accepting paper dollars as currency, they kept doing so, purely out of habit. If the dollar had started out as the unbacked paper it is today, it never would have gained widespread acceptance in the first place. It isn't money anymore, but rather a temporary psychological trick. ___________ http://www.elitetrader.com/vb/showthread.php?s=&postid=1023231&highlight=dollar#post1023231
<i>"It isn't money anymore, but rather a temporary psychological trick."</i> We will live to see the time when the USD illusion is revealed. Eventually the U.S. will have sponsored too many wars / rebuilds, tilted the trade imbalance too far for too long and no longer has means to aptly back its paper on a wide scale if called. The world will turn elsewhere for its next superpower or two, and next prime currency will replace what the USD once was. That stale mantra about world needing US economy = consumers to keep the global hamster wheel running is absolutely no different than saying the world needed the Roman empire to survive in perpetuity. Any world power can slide to second-tier status. Dozens of them have in recorded history. The U.S. will be next, sooner or later. History repeats itself in predictable, patterned fashion. Part of that is only possible based upon the human natures of short-sightedness and disbelief. Doubt and disregard is the wall of ignorance global evolution revolves around.
Agreed, Austin. I didn't know you were Austrian school. <i>"The world will turn elsewhere for its next superpower or two, and next prime currency will replace what the USD once was."</i> ...and that next currency will NOT be unbacked fiat paper.
The only thing I can do and only thing you guys can do is to read information somewhere. No one, I repeat no one is able to comprehend what really is going on economically on the world level. No one can really make total sense of the complexity of the problem. If you guys think you know more than I do than you have to explain to me why writers at Forbes mag, IBD, BusinessWeek etc. are completely unaware of what you are talking about here. Oh I know they are probably co-conspirators aren't they? Regarding Gold, did they just figured out in 1998-00 they can print money? Put it differently, why USA ($$$) didn't collapse at the end of Seventies??? Actually U.S. (world) was in much worse shape economically. Hydroblunt I know you consider yourself better read economically than anyone at ET, please explain it to me. No bullshit just simple stupid common sense. What do you know, writers at major business mags don't???? My bet is, you guys know CRAP what future will bring. It's going to be the same "sky is falling" shit 20 years from now just like 20 years ago Japan was overrunning the U.S.. Yeah right. P.S. I have to focus on Daal's posts as one one of the sanest members around here.
yup.... is freakin' awesome that if you go long indexes you have ZERO risk of loss.... I love FREE MONEY$$
I think that could be a record breaking streak. Wonder if we will break 1000 days. Getting very close.
You are correct - So the $64 Q is when do the Chinese decide to "spend" the Billions they hold in USD reserves....and, what do they buy.