Discussion in 'Commodity Futures' started by Pekelo, Apr 27, 2006.
My fav Rep. Congressman:
"Today we face a 60% devaluation and counting, yet no one seems to care."
Never happen. Go back to writing tales of invading Iraq over saving the dollar.
Can you explained what happened at the G7 last weekend, were the bankers joking when they said the wanted to appreciate Asian currencies? Why is gold at a 25 year high? A 60 % depreciation of the dollar is not that crazy because foreign banks have been have keeping their currencies artificially very low. We lost 30% a few years ago do you remember that.
How long has the US been crying about the Chinese currency? Boohoo hoo. Here's an older thread about it: Hussman
I still get a chuckle out of how everyone was predicting China would bow to US and world demands over their currency. What exactly do you get out of hearing what the G7 or IMF has to say?
As for gold, good grief, last year there were reports of gold buying in China and India. Gold could be up for a number of reasons, but I guess fear is the hallmark of any republican nowadays.
The funny thing about the 30% decline is when I heard a professor claim that no one or no model can predict where a currnency is going. I'll post up a chart of the dollar longer term to show theres nothing wrong with it.
First off the dollar has lost 96% of its purchasing power due to inflation since 1913. This is a fact. It obviosly is the governments policy to slowly devalue our currencey. Personally I don't really care if that is what the gorvernment wants to do. If they don't inflate they will have to charge higher taxes. I know how to escape inflation, but still have not figured out how to escape taxes. My point is, that it's perfectly plausable to have 60% devaluation of the dollar within the next 5-15 years, it probably will not lead to end of the world. Would you be willing to bet me that the dollar in 10 years will be worth more than 60% of todays value as opposed to being worth less then 60%. I think you would be retarded to make this bet looking at past history. I just would hope that people are aware of this and take some attempt to protect themselves from inflation.
I second the motion. It seems Ron Paul is the only member of Congress with the balls to stand up and say no.
More from a like-minded thinker: http://www.mises.org/story/1971
Actually, that number is one thing I don't completely agree with in the article.
There can be other reasons for gold going up (supply, demand)beside being measured in dollars. Still, the article had many valid points...
Commodities are going to force this new dove chairman to keep moving rates up up up.
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