Thursday, March 19, 2009
Is the dollar dead?
A couple of days ago I read an interesting article about Russia's Putin. He was calling for the creation of a new international currency to replace the dollar as the international reserve. At first I dismissed it as Putin flexing his bare breasted chest again. However, today I see a "U.N. panel will next week recommend the world ditch the dollar as its reserve currency in favor of a shared basket of currencies." Something tells me the winds of change are a coming.
Subscribe to:
Post Comments (Atom)
15 comments:
Yeah well it's no secret that Putin & some others are not happy with how oil is traded in US Dollars. Dollar falls and they make less in the exporting of their product.
The fact that oil is traded in dollars also serves to prop up the dollar in international exchange. Old Vlad is probably not real crazy about that either.
If the day were to come where oil was traded in something other than dollars the cost of imported oil for this country would go through the roof.
All the more reason for us to make every effort to fund, research and implement alternative energy sources.
It's a matter of national security.
Is that because the dollar would be devalued?
Yes RAC, I can see to "stabilize" the worlds economy, and to strengthen a bankrupts country (any, I am not saying that it would be us). But with a shared currency throughout the world, there would be no devaluing. Where one is weak, another country would support that with a strong economy.
Do I think it should happen, NO.
Do I think it will happen, YES. As a Christian, the Bible predicts a one world currency. I have no timeline for such a thing. It could be in a thousand years, but eventually it will happen. Dang, am I now a doom and gloom guy????
Oh yes Doug, I think we could make a new post for "alternative energy sources". If we (or any one) could make one that was cheap and efficient, the world would turn to it. The problem is whenever something comes up, it cant sustain itself. Good example was/is bio-diesel. Take the corn off the food market, and food goes up. There has to be a balance. With the new gel batteries, electric cars can have a comeback.
The dollar would lose value because countries would not need to buy and keep dollars in their accounts to buy oil. Less demand for the dollar on the world market equals devaluation.
Even worse, we'd be in the position of buying whatever new currency was being used in oil trading with devalued dollars.
DRL,
Bio Fuels was a well intentioned boondoggle no question.
We may never see energy independence in our lifetimes but we can sure put a dent in our imports through solar, wind and geothermal. The technology is there. We just need the will.
Yep Doug, "necessity is the mother on invention" or something like that.
We just need to drill our own oil. Instead of letting everyone else drill it. Batteries contain toxic chemicals that need to be disposed of. And they need to be charged which means more electricity.Drill baby drill.All these so called "new" technologies have been around as long as I can remember. They aren't mass produced because they don't work. Sure keep researching and experimenting but in the mean tme,Drill!
And the form of currency doesn't matter.As long as its value can be backed up somehow. Thats what the gold standard is. Maybe we could have a BBQ rib standard. Or red rice standard. Thats what Putin doesn't understand. Thats why a lot of people are hording gold now. That has a real chance of backfiring though. There's only so much gold in the world.
I could never understand the economics or logic of international trade with the diversity of currencies?
Unfortunately there is no gold standard, at least not anymore. Your money is a Federal Reserve Note. Backed by...nothing. It's worth a dollar only because they say that's what it's worth.
People are hoarding gold as a hedge against inflation. It is also a commodity with intrinsic value. Speculative to be sure but what investment isn't.
Gold by the way was up $70 an oz today.
Exactly my point Doug. You said it better than I could. But even gold will max out so Diversify folks. Although when and if the shit hits the fan you will still be able to carry your gold in the store and get your toilet paper. Of course with inflation it won't be Double Roll. Back to the old 180 sheets per.Hahahaha. Wont even be enough TP to clean up the shit. Aint that a bitch?Sheesh.
Yeah you know Matt i was reading one of the other threads and you mentioned the New York New York roller coaster.
That is so weird because I was out walking earlier and I was thinking about that roller coaster.
THAT was cool.
Great minds thing a like!
So Doug, should I cash in my retirement moneys and buy gold, really, I want to know. I have lost about a third of it in the last two years.
Juls, well I'm no expert but....
No. Any money you have in your retirement should stay there. Someone as young as you has plenty of time to recoup what you've lost. It'll come back, always has anyway. I haven't touched mine and it's lost about 40% or so. No other investment over time can match stock based mutual fund returns.
Plus the tax penalties can be pretty severe for early withdrawal (that just sounds bad). Tax plus 10% penalty.
If you have discretionary money it wouldn't hurt to have a little in metals. I'm not talking Goldfinger type holdings. You can lose your ass in Gold too.
If you don't have a lot of play money you may even want to look at silver. There's a decent retailer in your neck of the woods, Scottsdale Silver (scottsdalesilver.com or apmex.com). They usually have a decent inventory of silver bullion which can be hard to find due to demand. I have noticed lately though they are sometimes out of stock on some items.
Back around 1980 or so silver actually went as high as $20 or so an oz which in today's dollars is closer to $50.
Whatever you choose to do as Matt said diversify and don't forget the Spam.
Yeah the spam and the Jack. Oh yea and the diet coke. 'course if the shit ever does hit the fan then I will probably forego the diet coke and just take it straight. Make's it easier to bend over and take the "Dry Slide".
Post a Comment