The American Empire Is Bankrupt

crazygaijin

Why hasnt anyone mentioned Gold or Silver yet?

Generali

crazygaijin wrote: »

Why hasnt anyone mentioned Gold or Silver yet?

Because gold and silver standards have serious flaws which mean they can't work in practice.

crazygaijin

Generali wrote: »

Because gold and silver standards have serious flaws which mean they can't work in practice.

I dont mean to use as money, I mean to protect against the coming devaluation of money.

I am still keen on Silver shooting up in value sometime very soon.

Generali

crazygaijin wrote: »

I dont mean to use as money, I mean to protect against the coming devaluation of money.

I am still keen on Silver shooting up in value sometime very soon.

Oh I see.

IMO there are a lot of better hedges - land/property and mining company shares being examples - that pay an income as well as hedging against potential turmoil.

sabretoothtigger

It doesnt have to be just gold or silver, commodities and normal assets have that effect too to some extent I think.

Its dam confusing but golds base value wont go up, its up on speculation right now and also like you say currencys get weaker and its price rises but any strong currency can do that much and you could get interest on that currency in whichever country but gold gives no dividend only its pure speculation returns afaik

If you buy gold in dollars, you have to convert it back to pounds when you sell and then consider what will be the exchange rate. You could lose money on a higher gold price if the british pound gets even stronger vs the dollar. This is what happened since feb afaik hence the price of gold in pounds fell I think

Currently doing my head in is considering a sterling denominated fund (lcty) investing in a dollar index. I think I have to bet the pound will rise slower then the underlying index rises in dollars in order to profit

Generali

sabretoothtigger wrote: »

It doesnt have to be just gold or silver, commodities and normal assets have that effect too to some extent I think.

Its dam confusing but golds base value wont go up, its up on speculation right now and also like you say currencys get weaker and its price rises but any strong currency can do that much and you could get interest on that currency in whichever country but gold gives no dividend only its pure speculation returns afaik

If you buy gold in dollars, you have to convert it back to pounds when you sell and then consider what will be the exchange rate. You could lose money on a higher gold price if the british pound gets even stronger vs the dollar. This is what happened since feb afaik hence the price of gold in pounds fell I think

Currently doing my head in is considering a sterling denominated fund (lcty) investing in a dollar index. I think I have to bet the pound will rise slower then the underlying index rises in dollars in order to profit

If you just want exposure to the underlying index could you hedge your FX exposure? I think you can do $10,000 minimum pretty cheaply these days (2 or 3bps). Less than that you could use a spread bet which will cost more.

Zagu

If this is real.....

US government securities seized from Japanese nationals, not clear whether real or fake

Bonds worth US$ 134.5 billion are seized. This is the largest financial smuggling case in history. But are they real? Concern over ‘funny money’ or counterfeit securities is spreading in Asia. The international press is silent.

Milan (AsiaNews) – Italy’s financial police (Guardia italiana di Finanza) has seized US bonds worth US 134.5 billion from two Japanese nationals at Chiasso (40 km from Milan) on the border between Italy and Switzerland. They include 249 US Federal Reserve bonds worth US$ 500 million each, plus ten Kennedy bonds and other US government securities worth a billion dollar each.

lavandergirl_2

Generali wrote: »

From the article:



Interestingly I can't find anything on the FT's website about this article.

I found it on http://www.globalresearch.ca/index.php?context=listByAuthor&authorFirst=Michael&authorName=Hudson but not on FT

also on the author's website
http://www.michael-hudson.com/articles/globalism/090614De-DollarizationDismantlingEmpire.html

bluey890

nearlynew wrote: »

I know. And it hasn't arisen by accident.

Inflation doesn't happen by accident. It is a deliberate policy designed to steal your money and is a direct result of a debt based money system.

Not my money nearlynew. I am hedged against inflation.

vivatifosi

Interesting update on the meeting from Forbes:

http://www.forbes.com/2009/06/17/currencies-dollar-bric-markets-reserves.html

'There was no call, or any direct reference, to developing new reserve currencies to challenge the dollar in the BRIC leaders' final statement, just diplomatic waffling on the '"need for a stable, predictable and more diversified international monetary system." It is anyway not in their short-term interest to undermine the value of the dollar and thus of their own foreign exchange reserves.'