U.S. economy...smells like Stagflation..

Discussion in 'Economics' started by TheDudeofLife, Oct 31, 2006.

  1. bgp

    bgp

    euro currency, swiss franc. rydex funds look at.

    bgp
     
    #11     Oct 31, 2006
  2. Rental property. I LOVE inflation!

    SM
     
    #12     Nov 1, 2006
  3. dac8555

    dac8555

    are you serious?? If you are..put down the keyboard and pick up ECON101...it will save you a few bucks.
     
    #13     Nov 1, 2006
  4. buy gold/silver. futures, not equities. if there is indeed a dollar "crash" - all paper will be worth much much less in dollar terms, and credit will be tightened significantly. other currencies such as euro/yen may protect you, but not in the event of a global financial meltdown.

    gold and silver will be the only real stores of value, so buy the futures, or buy the bullion.
     
    #14     Nov 1, 2006
  5. empee

    empee

    the catch is if there is a meltdown will the counterparties honor their agreements (like futures, etc). Unlikely.

    if you're really concerned, I'd get bullion and store it somewhere. I dont think things will function as you think they will in a meltdown.

    I think the government is trying to slowly devalue without causing a crisis.
     
    #15     Nov 1, 2006
  6. "..Jim Rogers, co-founder of the Quantum hedge fund with George Soros in the 1970s, recommends investors ``get out of Western stocks and the U.S. dollar and buy commodities.''


    ``The U.S., once the largest creditor nation, is now the largest debtor nation,'' Rogers said in a speech at the Next Generation of Commodity Investment conference in London yesterday. ``The country is increasing its foreign debts by $1 trillion every 15 months. The dollar is the world's medium of exchange, but that's changing. We are a bull market in commodities.''


    http://www.bloomberg.com/apps/news?pid=20601012&sid=abJfxAvhSslw&refer=commodities
     
    #16     Nov 1, 2006
  7. You are probably correct as it is in no ones best interest to melt the dollar as it is petro backed and does not need to be earned, just simply printed.
    One day it may be toast, but I suspect in the meantime we are all going to learn to adjust to a slow decline.
     
    #17     Nov 1, 2006
  8. btud

    btud

    All curencies are fiat (paper) nowadays. All modern economies survive through contained inflation. We must have inflation so that we do not have deflation, which would be much worse. The dream of any central bank in the world is to maintain a continuous inflation of between 1 and 2 percent, no more and no less.
     
    #18     Nov 1, 2006
  9. #19     Nov 3, 2006