America's Future

[Blue Leader]

Gold hit a high today after India dumped dollars for 200 tons of gold. China has been dumping the dollar for gold. George Soros came out and actually used the phrase "New World Order" with regards to finances. The Fed has been printing money 24/7 for who knows how long.

What are your opinions on America's (and the Dollar's) future? It appears there are many who are trying to drop kick the buck...including many in our govt.

Are you preparing for what could happen? What do you think may happen? Will it all come bouncing back and countries will get back into the dollar and we'll all make decent bank on the rebound from buying low?

I am concerned for our future and thought I'd see what all of you who love saving the dollar think!

I realize this sounds very doom and gloom, but it's what is happening in our world.

[Joan.of.the.Arch]

I think gold has a less inherent value than some other materials on earth. If we are going to base currency on things that come from earth, why gold? Monetary systems are just as much a fabrication when they are based on gold as they are when they are based on Mexican monarch butterfly wings or the output of a sawyer cutting red oak into planks.

t grams of butterfly wings = u ounces of gold = v hours sawing oak = w yen = x yuan = y lira = z euros.....

Besides, are you just wanting us all to run out and buy gold so that we drive the price up for you?

[Blue Leader]

I think gold has a less inherent value than some other materials on earth. If we are going to base currency on things that come from earth, why gold? Monetary systems are just as much a fabrication when they are based on gold as they are when they are based on Mexican monarch butterfly wings or the output of a sawyer cutting red oak into planks.

t grams of butterfly wings = u ounces of gold = v hours sawing oak = w yen = x yuan = y lira = z euros.....

Besides, are you just wanting us all to run out and buy gold so that we drive the price up for you?

Haha, no, I don't own any gold! I just think it says something when countries are saying "enough of the dollar, lets stash gold."

[maat55]

Gold will likely spike for a while then drop. Our countries financial future is uncertain, but save the tribulation period, it will rebound despite very poor government policies.

[buildmybudget]

Blue, I think you're hitting pretty close to home and there are a lot of bad signs for the dollar. The possibility of oil being priced via a basket of goods rather than the dollar and the fact that India and other countries are dumping dollars are telling signs. These countries are getting rid of dollars, which is going to cause further deflation...and this could help right our foreign trade deficit by making exports more attractive, but with the gov't spending like never before they will likely have to continue printing money. This will just cause further deflation.. I agree, it's pretty bad.

[LuxLiving]

I am watching closely and wanting badly to diversify into various other currencies. However, I'm not all that good at predictions. I do have a small gold position, but it's in a mutual fund, so no physical gold at this point.

However, when my family who knows I'm watchful of world economics asks me what I think? I tell them I'm going long on 'tuna and PB'. Meaning long-term storage groceries. And I am. As I said before on these forums, "I don't want to be left holding Confederate dollars, after the war is over."

It's a quandry I'm dealing with daily when any new money comes in to be invested, and right now especially because it's asset allocation rebalancing time for us. Where to put it with long term low risk vs. inflation risk vs. opportunity costs vs. lower/higher interest possibilities vs. dollar collapse possibilites. A girl gets dizzy!

[Broken Arrow]

All except one or two of the chilliest of the permabears are predicting near total economic collapse. I think most bears are arguing more like Dow 7000 or more, which if you think about it, we've already experienced back in 2008, and for better or worse, we're all still here....

With that in mind, the dollar isn't going anywhere. However, there is a possibility that the strength of the dollar could fall in the near future. I don't know. However, what we do know right now is this: We've been experiencing deflation since March 2009. So, the inflation fears right now are a bit inflated as well, seeing as how our real problems are elsewhere.

For that matter, I've also argued that gold is an expensive trade to go into right now, and if there's something I've learned, it is that no matter how good the prospects are, if something costs too much, you still might not make money....

However, I am OK with gold being a diversifier in a buy-and-hold portfolio. For manual slice-and-dice portfolios, how about perusing some "lazy portfolios"? "Lazy" in this context isn't a bad thing by the way.

Another form of investor risk is paralysis by analysis. The deeper we go, the more confusing it gets, which could be counter-productive if it causes us to shy away from investing properly or none at all.

[jasonnoguchi]

I seriously think they are preparing for a new currency and then let the US dollar go into default, wiping out the HUGE government debt. Heard of the "Amero"?

[Blue Leader]

Yes! I was hoping I'd get some of you to voice opinions on this controversial and cloudy subject.

I heard someone say the Chinese are doing what we did during WW1. The world didn't realize we were the world power till WW2...

I do think we can pull out of the tail spin, we just need to pull up sooner rather than later. (STOP GOVT SPENDING)

[cschin4]

I have thought about buying gold, but how can one be assured they are getting real gold? A certificate could be worthless and just a piece of paper. If I bought gold coins, etc., how would I really know that it was real gold? It would be pretty easy to make and sell fake gold coins. With so much fraud and corruption, I hesitate to even get into that market.

[Broken Arrow]

Just happened across this. Kiplinger's take on the dollar.

[Blue Leader]

Thanks for that link. After reading that, I'm reminded that there are so many variables in everything financial it's dizzing.

[jasonnoguchi]

Gold is investment grade and disaster insurance only when you buy and keep gold bar some where safe. (tip: not in a bank) For your info, when a country buys gold, gold bars actually get shipped to that country. Are you getting gold bars "shipped to your country" when you buy gold? if not, think again.