James Grant & the USD - contrarian indicator?

Discussion in 'Wall St. News' started by BosyBillups, Dec 5, 2009.

  1. http://shar.es/aIZfF

    Per JG, the solution to our currency problem:

    “So our Martian would be mystified and our honored dead distressed. And we, the living? We are none too pleased ourselves. At least, however, being alive, we can begin to set things right. The thing to do, I say, is to restore the nets to the tennis courts of money and finance. Collateralize the dollar—make it exchangeable into something of genuine value. Get the Fed out of the price-fixing business. Replace Ben Bernanke with a latter-day Thomson Hankey. Find—cultivate—battalions of latter-day Hellmans and set them to running free-market banks. There’s one more thing: Return to the statute books Section 19 of the 1792 Coinage Act, but substitute life behind bars for the death penalty. It’s the 21st century, you know.”
  2. Grant wrote:
    "Collateralize the dollar—make it exchangeable into something of genuine value."

    What is genuine value? Is it gold or other precious metal?

    Is it intellectual capital, patents and knowledge?

    Is it military might or nuclear weapons?

    If it is the latter, the US wins. The US dollar should be worth 10 to 100 times what it is worth today.

    Two thousand warheads, minimum of $100 b damage per warhead is worth $200 trillion dollars.

    ”It’s the 21st century, you know.”
  3. The Rentenmark provides an excellent example of currency collateralization sans precious metals. Go there now or perforce go there after hyperinflation.
  4. jd7419


    Of course the US wins because of its weapons. World war 3 will cause a massive rise in the dollar, it just matters when Obama wants to gets it started. Whats even more ironic is the so called liberal one will be the one pushing the buttons on our nucs.
  5. Illum


    No World War III. We do not want a strong dollar, our debts would be worth more. This point is admitted in the article. Maybe China should not have lent capital to someone who can just print the world's reserve currency? I dunno, just thinking out loud.
  6. harkm


    Good point.

    Its a great deal for us. China sends us cheap products. We send them dollars(Treasuries) that they can't spend or get rid of.
  7. hehe... i like where this is goin. giggidy giggidy