If Dollar goes to hell, and that's a big if,

Discussion in 'Trading' started by TM1982, Aug 30, 2009.

  1. the1

    the1

    Ummmm.....I'm gonna go out on a limb here. Short the dollar? Errr...let me correct that. Short the dollar at 400:1 leverage?

     
    #11     Aug 31, 2009
  2. It's not as simple as shorting the dollar.

    So you short the dollar.
    They're inflating the hell out of it, great you should be making tons of money right?

    Oh wait but they're also inflating the euro and the pound and all other foreign currencies...
    So on the currency exchange the dollars value doesn't drop against *other currencies* anywhere near as much as it should and your shorts don't earn you much.
     
    #12     Aug 31, 2009
  3. The only way the USD can "go up" is if:

    1. Large quantities of USD are physically destroyed, written off or hoarded out of circulation.
    2. Productivity undergoes a big positive jump.

    So if you ever see it "go up" in a non-temporary and localized way what you're actually seeing is an effect of the other currencies it is compared to are also being inflated.

    It looks like it went up in value when really all they did was shorten the measuring stick.
     
    #13     Aug 31, 2009
  4. achilles28

    achilles28

    Good post.
     
    #14     Aug 31, 2009
  5. Maybe if the dollar goes to hell, you could take those worthless bills and weave them into handbaskets. :p
     
    #15     Sep 1, 2009
  6. There will be increased inflation in the next several years like in the late 70's. Buy hard assets, land, gold, silver, buy a house now that they are back to a more reasonable price and rent it out if you already own a home. You aren't going to get rich, but it will keep you ahead of the inflation curve.
     
    #16     Sep 1, 2009
  7. We're headed for deflation and more economic contraction, despite what anyone claims...

    The V that was supposed to be, and then the U that was possible instead, and even the L that everyone feared...it'll be worse than that...think escalator.

    Inflation talk is poppycock. Cash is king. Dollars are being destroyed by banks recapitalizing balance sheets and writing off loan losses almost as fast as they were printed.
     
    #17     Sep 1, 2009
  8. kaciara

    kaciara

    buy gold and wait the end (if any) of WWIII
     
    #18     Sep 1, 2009
  9. Sounds about right, GO US equities!:cool:
     
    #19     Sep 1, 2009
  10. champ, can we assume you are a dollar bull?
     
    #20     Sep 1, 2009