booondocker
New member
Pimpco(?) guy says this could get bad! Buy gold???3
No confidence in Markets...
- Thread starter booondocker
- Start date
yamahauler
Active member
If you think it will get that bad, yank the gains and reinvest when it bottoms and ride the wave to the top again.
My theory...gold will tank this year or early next year.....bad investment....to high right now.
Just my 2 cents.
My theory...gold will tank this year or early next year.....bad investment....to high right now.
Just my 2 cents.
yamahauler
Active member
just curious as I don't know the answer...let's say the euro is worth zero, the dollar follows...at that point what do you pay with, what do you work for, is there food on the shelves at the store? It doesn't make sense to say a currency will end does it? What replaces it? A new one and the game starts all over again.
The value of a currency is defined as the value vs other currencies, most often the US dollar.
In the country of Yamahauler the unit of currency is the Apex. In 2005 the Apex was worth $1 US dollar, exchange rate 1 to 1. Due to fiscal mismanagement by President Yammi, in 2006 the Apex exchange rate was 2 to 1, so President Yammi printed $200 Apex notes. Then the crap hit the fan, and by the end of 2009 the exchange rate was 100,000 to 1, and the residents are now using $1B Apex notes to buy bread.
President Yammi was assassinated and replaced by President Polaris. Under an arrangement with the US a new currency called the $Rush was introduced (Good looking dollar, but slow) and the value was set at 5 to 1. All citizens turned in their Apex dollars for Rush dollars at a rate of $1B Apex to $1Rush. To stabilize it the US bought $20 Billion Rush dollars and made loan guarantees for $50B US. The international community accepts this value and is trading freely with Yamahauler. Unfortunately, Yamahauler produces little of value.
To protect its investment the US signed a free trade agreement with Yamahauler, and now all major appliances sold in the world are made in Yamahauler by people making $3Rush per day, as are Nike shoes and Dell computers.
Due to the massive industrialization of US farms, the cost of US agri products is much cheaper than Yamahauler food, and the US now supplies most of the grain used by Yamhauler, which has caused the demise of small Yamahauler farms. These farms are now supplying most of the US marijuana crop.
And that's how currency works!!!!
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Actually planning a trip to Yamahauler!
yamahauler
Active member
doc...interesting spin...I too wouldn't be surprised at a one world currency...BUT how to you please everyone (HUGE businesses, etc) when they set the value.
What could go wrong with a global currency?
What could go wrong with a global currency?
Now watch this.....
In 1994 Mexico had a currency crisis, caused by a variety of bad policy decisions, some of which are:
1994 was the last year of the sexenio, or 6-year administration of Carlos Salinas de Gortari who, following the PRI tradition on an election year, launched a high spending splurge and a high deficit.
In order to finance the deficit (7% of GDP current account deficit), Salinas issued the Tesobonos, a type of debt instrument denominated in pesos but indexed to dollars.
Mexico experienced lax banking or corrupt practices; moreover, some members of the Salinas family collected enormous illicit payoffs.
The EZLN, an insurgent rebellion, officially declared war on the government on January 1; even though the armed conflict ended two weeks later, the grievances and petitions remained a cause of concern, especially amongst some investors.
To bail out the peso this happened:
Loans and guarantees to Mexico totaled almost $50 billion, with the following contributions:
The United States arranged currency swaps and loan guarantees with a $20 billion total value.
The IMF promised an 18 month Stand-by Credit Agreement of around US $17.7 billion.
The Bank for International Settlements offered a $10 billion line of credit.
The Bank of Canada offered short term swaps with a US dollar value of around one billion.
NAFTA was implemented at the same time, and this happened:
Maquiladoras (Mexican factories which take in imported raw materials and produce goods for export) have become the landmark of trade in Mexico. These are plants that moved to this region from the United States, hence the debate over the loss of American jobs. Hufbauer's (2005) book shows that income in the maquiladora sector has increased 15.5% since the implementation of NAFTA in 1994.
Mexico has gone from a small-key player in the pre-1994 U.S. export market to the 2nd largest importer of U.S. agricultural products in 2004, and NAFTA may be credited as a major catalyst for this change. The allowance of free trade removed the hurdles that impeded business between the two countries. As a result, Mexico has provided a growing meat market for the U.S., leading to an increase in sales and profits for the U.S. meat industry. This coincides with a noticeable increase in Mexican per capita GDP that has created large changes in meat consumption patterns, implying that Mexicans can now afford to buy more meat and thus per capita meat consumption has grown[16].
Production of corn in Mexico has increased since NAFTA's implementation. However, internal corn demand has increased beyond Mexico's sufficiency, and imports have become necessary, far beyond the quotas Mexico had originally negotiated.
And now this-
The logical result of a lower commodity price is that more use of it is made downstream. Unfortunately, many of the same rural people who would have been likely to produce higher-margin value-added products in Mexico have instead emigrated.
Ok, here we go....
Mexico has a currency crisis in 1994
US, Canada, IMF bails them out
To protect our investment and spur Mexico's economy, we implement NAFTA, starting in 1994
Our factories move to Mexico for cheap labor
Our cheap meat and grain are exported to Mexico in huge amounts
Small Mexican farms in rural areas fail, leaving vast numbers of poor
American agriculture industry grows rapidly to supply Mexican demand, requiring a fast demand for labor that cannot be filled through traditional means
The poor farmers and ranchers from rural Mexico that lost their farms now enter the US illegally to work in....class, class, anyone...the agriculture and meat industry!
The farmland in rural Mexico near our borders now grows....class, class, anyone...Dope!
The US government doesn't like dope, and tells the Mexican government to knock it off.
This results in open warfare on the streets of the border towns in Mexico, and a decrease in the supply of dope to the US
The decrease in dope production causes more poor immigrant laborers to flee to the US illegally.
Now, we have a border war!
Wasn't that fun????
In 1994 Mexico had a currency crisis, caused by a variety of bad policy decisions, some of which are:
1994 was the last year of the sexenio, or 6-year administration of Carlos Salinas de Gortari who, following the PRI tradition on an election year, launched a high spending splurge and a high deficit.
In order to finance the deficit (7% of GDP current account deficit), Salinas issued the Tesobonos, a type of debt instrument denominated in pesos but indexed to dollars.
Mexico experienced lax banking or corrupt practices; moreover, some members of the Salinas family collected enormous illicit payoffs.
The EZLN, an insurgent rebellion, officially declared war on the government on January 1; even though the armed conflict ended two weeks later, the grievances and petitions remained a cause of concern, especially amongst some investors.
To bail out the peso this happened:
Loans and guarantees to Mexico totaled almost $50 billion, with the following contributions:
The United States arranged currency swaps and loan guarantees with a $20 billion total value.
The IMF promised an 18 month Stand-by Credit Agreement of around US $17.7 billion.
The Bank for International Settlements offered a $10 billion line of credit.
The Bank of Canada offered short term swaps with a US dollar value of around one billion.
NAFTA was implemented at the same time, and this happened:
Maquiladoras (Mexican factories which take in imported raw materials and produce goods for export) have become the landmark of trade in Mexico. These are plants that moved to this region from the United States, hence the debate over the loss of American jobs. Hufbauer's (2005) book shows that income in the maquiladora sector has increased 15.5% since the implementation of NAFTA in 1994.
Mexico has gone from a small-key player in the pre-1994 U.S. export market to the 2nd largest importer of U.S. agricultural products in 2004, and NAFTA may be credited as a major catalyst for this change. The allowance of free trade removed the hurdles that impeded business between the two countries. As a result, Mexico has provided a growing meat market for the U.S., leading to an increase in sales and profits for the U.S. meat industry. This coincides with a noticeable increase in Mexican per capita GDP that has created large changes in meat consumption patterns, implying that Mexicans can now afford to buy more meat and thus per capita meat consumption has grown[16].
Production of corn in Mexico has increased since NAFTA's implementation. However, internal corn demand has increased beyond Mexico's sufficiency, and imports have become necessary, far beyond the quotas Mexico had originally negotiated.
And now this-
The logical result of a lower commodity price is that more use of it is made downstream. Unfortunately, many of the same rural people who would have been likely to produce higher-margin value-added products in Mexico have instead emigrated.
Ok, here we go....
Mexico has a currency crisis in 1994
US, Canada, IMF bails them out
To protect our investment and spur Mexico's economy, we implement NAFTA, starting in 1994
Our factories move to Mexico for cheap labor
Our cheap meat and grain are exported to Mexico in huge amounts
Small Mexican farms in rural areas fail, leaving vast numbers of poor
American agriculture industry grows rapidly to supply Mexican demand, requiring a fast demand for labor that cannot be filled through traditional means
The poor farmers and ranchers from rural Mexico that lost their farms now enter the US illegally to work in....class, class, anyone...the agriculture and meat industry!
The farmland in rural Mexico near our borders now grows....class, class, anyone...Dope!
The US government doesn't like dope, and tells the Mexican government to knock it off.
This results in open warfare on the streets of the border towns in Mexico, and a decrease in the supply of dope to the US
The decrease in dope production causes more poor immigrant laborers to flee to the US illegally.
Now, we have a border war!
Wasn't that fun????
dave b -
If we do go to a one world currency...pull the shades, grab the Rosary Beeds, and pray it doesn't hurt. Read The Book of Revelations...
I've been "stock piling" and buying ammo for 3 years now and figured out how to make my well function with a hand pump.
Good luck out there!
If we do go to a one world currency...pull the shades, grab the Rosary Beeds, and pray it doesn't hurt. Read The Book of Revelations...
I've been "stock piling" and buying ammo for 3 years now and figured out how to make my well function with a hand pump.
Good luck out there!
I'm hoping the market will turn by mid week then will be a buying opportunity. At some point it WILL turn big just not feeling like this is anything more than fear selling taking a little to cash. Europe sooner or later will do same as USA with bank bailouts they have to have a back stop for banks or you don't have any wealth or economy. Don't think this cycles past mid week. Just my opinion because my investments did not tank down a little but Yields way up. There is money to be made just don't panic & do something stupid.
anonomoose
New member
Panic no doubt, but like October 08, I see some worried, silk suit people. Unless there is some "intervention" this is going to get much worse...in my opinion.
A lot of Europe is still very stable. Those small enities ala Greece that are on short side of euro are very small parts of much bigger picture. Agree I saw some nice suits last week on TV but remember they are position players & interesting to hear all sides. If you stay with USA quality stocks & bonds you will be ok & in fact good time to buy quality. More sellers than buyers but lots of paper changing hands now which is interesting to watch wild swings. Traders software set to buy & sell when stocks hits lower levels & comes roaring back in just minutes. This is different buyers staying in the game can't run & hide anywhere with all cash a 1.5% interest they won't do it they will continue to buy stocks since market can turn up soooooo quickly. New norm?.....maybe for awhile but USA turning up & smart to be there for recovery.
anonomoose
New member
Well, we are all in for the ride...hope your right!
just hope you sell before the huge W starts its long trip back down and you have your house or at least your cabin payed off. the bills are going to come due sooner than latter the fed will be the next big bubble to pop and when it pops well I don't even want to think about that one