In “The New Bubble: Cash“, I argued that there was a bubble in U.S. dollars and treasuries.
Bill Gross, co-chief investment officer of the world’s largest bond fund, now says:
“Treasuries have some bubble characteristics . . . . The government and the Fed cannot continue to talk about trillions of dollars of financing and expansion of the Fed’s balance sheet without the dollar going south”.
Many others are saying the same thing.But how do we know when the dollar bubble will pop? In other words, when should we get out of dollars?
An article in Bloomberg might provide some insight:
The biggest foreign-exchange strategists and investors say the best may be over for the dollar after a four-month, 24 percent rally.***
“The dollar will go to new lows as the U.S. attacks its currency,” said John Taylor, chairman of New York-based FX Concepts Inc., which manages about $14.5 billion of currencies.
Citigroup Inc., Goldman Sachs Group Inc., BNP Paribas SA and Bank of America Corp. predict further weakness. Last week was the first time in almost a month that consensus estimates for the dollar against the euro through 2009 fell, according to the median forecast of 47 strategists surveyed by Bloomberg.
(ARTICLE CONTINUES BELOW)
Taylor, whose firm manages the biggest hedge fund focusing on foreign exchange, said while the dollar may strengthen next year, it will fall to a record low against the euro in 2010 and to a 13-year low of 80 per yen as soon as 2009.***
“We’re at a turning point in terms of dollar dynamics,” said Jens Nordvig, a New York-based strategist at Goldman Sachs, the biggest U.S. securities firm to convert to a bank. “The dollar shortage has been addressed and we’ll see people start to focus on other things and those are all dollar negative.”***
Robert Sinche, the head of global currency strategy at Bank of America in New York, the third-largest U.S. bank, says the dollar is bound to weaken because investors are starting to focus on traditional measures of value such as relative interest rates, budget deficits and trade balances.As more loans are repaid, there is less need for dollars, forcing investors to value the currency on metrics such as relative interest rates, budget deficits and trade balances. By those measures, the greenback should weaken, according to Sinche.***
Like Goldman Sachs, London-based Barclays Plc, the U.K.’s third-biggest bank, forecasts the dollar will weaken to $1.45 per euro by the end of 2009, according to data compiled by Bloomberg. New York-based Morgan Stanley strategists Stephen Jen and Spyros Adreopoulos, who in August advised clients to buy the dollar, said in a Dec. 11 report that the currency may strengthen in the first half of 2009, before “underperforming most other currencies” as the global economy recovers.
Note: I am not an investment advisor and this should not be taken as investment advice.
December 16th, 2008 at 7:18 am
it’s past time to dump the buck !!!!!!!!!
http://www.youtube.com/watch?v.....annel_page
goldieshouse.piczo.com
December 16th, 2008 at 8:00 am
Get out last month, convert your paper into survival gear for you and your family, here is a good short list
- some type of mobile shelter
- cross or compound bow
- fishing gear
- flint
- axe/saw/wood tools
- cast iron frying pan
- winter rated sleeping bags -10F or better
- non parishables (peanut buter is an excellent compact source of protein, you can stay nourished of 1 tablespoon of peanut buter a day)
- Lanterns (dynamo or solar)
- water canteens (for those with no access to fresh water, get a filtration device or learn how to filter water with natural means)
- DETAILED MAPS of your escape area
- compass
- solar radio or dynamo radio
- any thing else of value ie gold coins, silver coins for bartering (money is not valuable lol)
December 16th, 2008 at 10:34 am
You can contact any of my offices to get your dollar investments transferred into global stccks, bonds, and yes, gold.
http://www.europac.net
Alex Jones, may I be a guest on your show?
Peter Schiff
President, CEO Euro Pacific Capital
December 16th, 2008 at 1:08 pm
About 45 minits ago
December 16th, 2008 at 5:03 pm
NOW is not too soon!
Peter is that really you
Read your Crash Proof short time ago and checked out your web site for foreign investments and find you are on the level and worth looking into further. In your book you had mentioned goldmoney.com as being legit and the owner an associate of yours. What I could not find through that site was whether you could actually take actual possession of the gold if desired. Unfortunately the yuan is not in any tradable forex currency pair. I would like to pursue that versus buying Chinese stock in USD held in yuan with your company although it does not appear possible at this time. I also agree on the US losing reserve currency status falling to the Euro and later possibly the yuan. Will be watching gold accumulation by China to shore up and make more attractive this scenario in the long-term.
Great work you are doing in trying to wake people up.
December 16th, 2008 at 5:24 pm
i don’t think its time to drop the dollar. i believe its been long needed to ‘drop’ the people who manipulate and print the dollar. get back to our constitutional republic controlled dollar and all will be fine.
thanks
December 16th, 2008 at 5:25 pm
Peter,
Just a few more things while you are around if you don’t mind.
Had been rereading about the gold confiscation of FDR is ‘33/34 last night and ran across a web page mentioning Ron Paul’s unsuccessful attempt to get that legislation repealed as the law is still on the books where the US gov’t can decree to confiscate that or nearly anything else in periods of economic crisis. My specific concern is the trading with the enemy portion of this legislation where theoretically the US gov’t to claim any nation an enemy and confiscate any citizens holdings of any of their foreign financial instruments. Since I will soon have dual citizenship (yup am out of here before the barbed wire goes up) I am concerned with the 1099 form your firm will send to the IRS identifying my potential foreign holdings for obvious reasons. In light of this I will most likely wait til I am off the grid before taking advantage of your services.
December 16th, 2008 at 7:53 pm
That is it i’m gonna say it. Hold on to your material at all cost!!! AHHH AHHH!!! We are all fools and the judgement is upon us. An interesting parabole to look at is the story of sodom and gamora. Locke was told to leave that night, he fled with his family and was told to not even look back at the cities as they were being destroyed. His family all looked back and were turned into pillars of salt. Now if you look at this it is matching current things. We are holding on to a corrupt worldly system with alot of fun toys and perverse behavior. We foolishly think we can make clean something that is inherently dirty.
Prerare to leave society in an exodus and never look back, otherwise you will be consumed in these final hours and give what little left you posses that is of any value in this life. It’s not a physical object of this realm.
Prepare yourselves. You will need to leave this society and if you do, as locke did, you will witness maybe people you care for turn into pillars of salt figuratively speaking. You can only control your own actions and you will have to live with your actions over the coming tribulation. Their is only one way to save yourself. “Go out from among them”
That’s my peice… so peace
December 16th, 2008 at 10:10 pm
Pardon me, but I would just like to say…PRAISE JESUS!!!! HALLE-FUCKIN-LUJAH!!!
December 16th, 2008 at 10:13 pm
“Go out from among them”
My thinking as well although coming from a different perspective.
I also agree with your survivalist approach in #2 noted below.
The salient point is to find sanctuary from the barbarity to come. Civilization is only skin deep for most and this basic humanity is being bred out of our society in subtle and not so subtle ways. Yes, I’ve had to leave everything to start anew many times and have bounced back. If it comes to that I must be prepared for that again. However, I think it wise to set-up a plan B, C, etc. so that you will not be at the mercy of the moment.
I’ve listened to close friends from the former Soviet bloc and when they arrive here they ask ‘Where are the freedoms?’. They say the same thing which happened to us is happening here. Fabianism is about to give way to something more sinister.
Some here claim to want to fight it out with the slave masters using violence. This is noble yet an ineffective and counter-productive strategy. Those that would wouldn’t ever think about spouting off on a public forum anyway unless maybe they were feds. What a honeypot this site may be.
Somehow being aware of what in all probability will come, is already in process, will ameliorate the psychological and spiritual shock thereby aiding survival. The first three months of civil unrest will be the most deadly. Survive that, persevere the aftermath, and rebuilt a just society from the ashes.
December 16th, 2008 at 10:28 pm
hey, Peter Schiff , I’ll have food but you cannot buy any with your stocks,bonds or your gold.
December 16th, 2008 at 10:52 pm
we cannot create a system that is inherently evil. Money changing and most forms of civil economy are doomed to failure. Man is capable of so much more. I look at what we can accomplish and it saddens me that our ego’s get in the way of our true reason for being here. We coulda had it all, it’s a shame the souls of men are easily corruptable. With these failed ideologies, history will repeat itself over and over again. But i swear to you this, we are about to witness a culling the likes of which have never been experienced on this earth, we are talking in the 5 billion plus. Don’t worry the stench will reach up into the heavens and the earth will face judgement. Mark my words.
And to Dragoni, perspective is irrelevant, that is just symatics, i hate peoples religious view about the only way to heaven is through jesus bullshit. Organized religion has long warped and perverted the true teachings and messages of bible, torah and koran. We need to abandon falsehoods and focus on what was spoken. Those who are unworldy will be spared. Those who relish in the plaisantries of a morally bankrupt society will eat sand. They would be better off with millstones tied to their necks and to be tossed into the ocean. But most will cling onto that nice brand new car and their perfect house. It will be their undoing.
December 16th, 2008 at 11:22 pm
Canada,
I agree with what you said about religion and perspective. We have to be willing and able to walk away from all material things at a moments notice to be really free. You really need to trust yourself and your higher power for this to work. Possessions have a way of possessing people like Cortez’s soldiers drowning after raiding Montezuma’s gold. My sanctuary is far away from here and in an agrarian society where people still know how to do things that those here will have to relearn. I’ll have wheat, grapes, and other agri products to barter with. Still I like to diversify economically to increase the odds of surviving the hard times ahead. I do however agree with you basically that it will not be by our will alone that we survive. Smart only gets you so far. I really don’t fear anything much at all for myself only for those close to me not as strong to face the shock.
December 17th, 2008 at 2:11 am
get gold now a wheelbarrow for the exchange from dollars to Ameros. Yes, really, look it up. best, sandra
March 15th, 2009 at 6:36 pm
i feel sorry that everyones always attacking her about something but honestly, she’s starting to be a annoying spoilt brat!
March 21st, 2009 at 6:20 pm
FAP Turbo, the best forex trading system!
March 22nd, 2009 at 2:01 pm
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March 22nd, 2009 at 2:54 pm
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March 22nd, 2009 at 5:28 pm
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