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    Hello all,

    Having followed the whole Presidential election very closely, aswel as the current economic crisis (which Peter Schiff and Dr Ron Paul predicted would happen years ago, yet they were laughed at) it is really worrying to see more and more "cheap" credit created by the Fed pumped into the economy. All this is doing is trying to avoid a recession you cannot avoid. Increase the money supply is destroying the dollar and I predict the collapse of the dollar sometime in January following China's offloading of the currency.

    What will this mean? This will cause massive problems worldwide, but very serious problems in America. I predict this will most likely be the front to establish a new American currency, probably called the Amero with the establishment of a North American Union, you already have the EU, African Union, NAFTA, a NAFTA Superhighway etc.

    This is just a prediction altough it is based on solid fact that as you increase the money supply (The money supply since 1913, when the Fed was created) has increased by over 1000%) you depriciate the currency (the purchasing power of the dollar has lost more than 92% of its value since coming off the gold standard)

    Theres my 2 cents worth, or probably 200 dollars worth with the runaway inflation crisis looming.
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    We've had the inflation, now the dollar is up against almost everything.

    The bubble has simply been too huge, the wind rushing out too strong. The bailouts and injections have been blown out and scattered like confetti in a gale.

    Gold down, silver down, oil down, stocks down, property DOWN (), it's deflation.
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    (Original post by sean43)
    Hello all,

    Having followed the whole Presidential election very closely, aswel as the current economic crisis (which Peter Schiff and Dr Ron Paul predicted would happen years ago, yet they were laughed at) it is really worrying to see more and more "cheap" credit created by the Fed pumped into the economy. All this is doing is trying to avoid a recession you cannot avoid. Increase the money supply is destroying the dollar and I predict the collapse of the dollar sometime in January following China's offloading of the currency.

    What will this mean? This will cause massive problems worldwide, but very serious problems in America. I predict this will most likely be the front to establish a new American currency, probably called the Amero with the establishment of a North American Union, you already have the EU, African Union, NAFTA, a NAFTA Superhighway etc.

    This is just a prediction altough it is based on solid fact that as you increase the money supply (The money supply since 1913, when the Fed was created) has increased by over 1000%) you depriciate the currency (the purchasing power of the dollar has lost more than 92% of its value since coming off the gold standard)

    Theres my 2 cents worth, or probably 200 dollars worth with the runaway inflation crisis looming.
    LOL! Do you live in a cave without any access to the outside world?

    Have you not noticed that the dollar is actually trading at a 6 1/2 year high against sterling ($1.47/pound) and has gained massive ground against the euro (now $1.26/euro) People are fleeing equities, commodities are nosediving and the dollar is benefitting mightily as a result. It's a safe haven. You must be the only person in the world who predicts an imminent dollar collapse!

    Hilariously, you then go on to talk about a looming "runaway inflation crisis" Haha x 2!!!!! Are you kidding me? Prices are bombing my friend. The world is tipping into a recession, that could be very deep and very long lasting. Consumers are running for cover! Most people are more worried about GDP collapse and possible deflation, not inflation!

    You're a real card!
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    i still have my dollars from my holiday a month back

    im rich im rich im rich!
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    (Original post by Howard)
    LOL! Do you live in a cave without any access to the outside world?

    Have you not noticed that the dollar is actually trading at a 6 1/2 year high against sterling ($1.47/pound) and has gained massive ground against the euro (now $1.26/euro) People are fleeing equities, commodities are nosediving and the dollar is benefitting mightily as a result. It's a safe haven. You must be the only person in the world who predicts an imminent dollar collapse!

    Hilariously, you then go on to talk about a looming "runaway inflation crisis" Haha x 2!!!!! Are you kidding me? Prices are bombing my friend. The world is tipping into a recession, that could be very deep and very long lasting. Consumers are running for cover! Most people are more worried about GDP collapse and possible deflation, not inflation!

    You're a real card!
    The dollar is trading at a 6 1/2 year high for now, you honestly think thats going to last long? I completely disagree the Dollar is a safe haven, the Chinese are already starting to offload their dollars in favour of other currencies. A few countries that start to break their dollar pegs will see a complete collapse of the currency.

    There is absolutely zero chance of deflation happening given the current increase in money supply (yet again). You can trace the increase in money supply to the rise in inflation.

    Prices of electrical goods and other things maybe "bombing", but food, gas, electricity prices have soared by over 10%, only the falling prices of electrical goods and other non neccessities are keeping the inflation level below 5%.

    The dollar is doomed my friend, you cannot continue to print more and more dollars and not expect the value to fall. All the Fed is doing by printing more dollars is delaying a very serious collapse, and this will make it worse.

    As for me being the only one predicting the dollar collapse, are you the one living in a cave? Your MSM "expert" may not predict such a thing, I actually take a massive interest in the current crisis and people like Stephen Jen, the Chief Economist at Morgan Stanley, Peter Schciff and Frmr Presidential Candidate Ron Paul have predicted such a collapse

    The dollar will cease to be the Global world reserve currency very soon.
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    (Original post by sean43)
    The dollar is trading at a 6 1/2 year high for now, you honestly think thats going to last long? I completely disagree the Dollar is a safe haven, the Chinese are already starting to offload their dollars in favour of other currencies. A few countries that start to break their dollar pegs will see a complete collapse of the currency.

    There is absolutely zero chance of deflation happening given the current increase in money supply (yet again). You can trace the increase in money supply to the rise in inflation.

    Prices of electrical goods and other things maybe "bombing", but food, gas, electricity prices have soared by over 10%, only the falling prices of electrical goods and other non neccessities are keeping the inflation level below 5%.

    The dollar is doomed my friend, you cannot continue to print more and more dollars and not expect the value to fall. All the Fed is doing by printing more dollars is delaying a very serious collapse, and this will make it worse.

    As for me being the only one predicting the dollar collapse, are you the one living in a cave? Your MSM "expert" may not predict such a thing, I actually take a massive interest in the current crisis and people like Stephen Jen, the Chief Economist at Morgan Stanley, Peter Schciff and Frmr Presidential Candidate Ron Paul have predicted such a collapse

    The dollar will cease to be the Global world reserve currency very soon.
    Yes, I do think that the dollar will continue to trade strongly against sterling. About 3 days ago the BoE announced that the UK economy is in such dire straights that next year GDP is set to contract 2% and that they are set to reduce interest rates all the way to 0% if necessary. That much said I think we can safely say that steling is set to weaken further against the dollar.

    No, the Chinese are not dumping the dollar in favor of other currencies. Give me your source. What other currencies are the Chinese dumping the dollar in favor of? (And why havn't I read about it? I am an economic news junkie so what am I not reading/watching that I should be?) It's true that there were mutterings about China exercising their "nuclear option" about 6 months ago but this never amounted to a hill of beans. It never happened then and it certainly won't happen now.

    You're obviously in a different part of the world than I'm in. With oil now below $58/pb gas in the US is now at a nationwide average of about $2/gallon. This is all helping to drive down prices. Other commodities are telling a similar story - from wheat maize to corn to aluminum to pork bellies - everything is coming down as demand shrinks. This is deflating prices, not inflating them. "Deflation" itself may not be a very real risk (atm) but inflation is a dead horse than no serious economist is bothering to flog.

    I couldn't care less what Stephen Jen predicted in early March. We are now in November. The economic landscape is a very different place than in was eight months ago and Jen's prediction has proven to be wrong. Peter Schiff is another economist who was also doomsmungering in March this year. Prominent and respected as an economist as he is, he also got it wrong. The whole world was predicting a dollar meltdown early this year (myself included) and the whole world got it wrong, wrong, wrong. As for Ron Paul.......well, there's a reason he's a minor figure on the fringe of US politics so who cares?

    The simple fact is that you are at least six months behind the curve Sean (have you been locked in a Thai prison since March?) If you can find me a major economist or analysist that is now talking seriously about inflation or a dollar collapse I'd like to hear about him/her.
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    (Original post by Howard)
    Yes, I do think that the dollar will continue to trade strongly against sterling. About 3 days ago the BoE announced that the UK economy is in such dire straights that next year GDP is set to contract 2% and that they are set to reduce interest rates all the way to 0% if necessary. That much said I think we can safely say that steling is set to weaken further against the dollar.

    No, the Chinese are not dumping the dollar in favor of other currencies. Give me your source. What other currencies are the Chinese dumping the dollar in favor of? (And why havn't I read about it? I am an economic news junkie so what am I not reading/watching that I should be?) It's true that there were mutterings about China exercising their "nuclear option" about 6 months ago but this never amounted to a hill of beans. It never happened then and it certainly won't happen now.

    You're obviously in a different part of the world than I'm in. With oil now below $58/pb gas in the US is now at a nationwide average of about $2/gallon. This is all helping to drive down prices. Other commodities are telling a similar story - from wheat maize to corn to aluminum to pork bellies - everything is coming down as demand shrinks. This is deflating prices, not inflating them. "Deflation" itself may not be a very real risk (atm) but inflation is a dead horse than no serious economist is bothering to flog.

    I couldn't care less what Stephen Jen predicted in early March. We are now in November. The economic landscape is a very different place than in was eight months ago and Jen's prediction has proven to be wrong. Peter Schiff is another economist who was also doomsmungering in March this year. Prominent and respected as an economist as he is, he also got it wrong. The whole world was predicting a dollar meltdown early this year (myself included) and the whole world got it wrong, wrong, wrong. As for Ron Paul.......well, there's a reason he's a minor figure on the fringe of US politics so who cares?

    The simple fact is that you are at least six months behind the curve Sean (have you been locked in a Thai prison since March?) If you can find me a major economist or analysist that is now talking seriously about inflation or a dollar collapse I'd like to hear about him/her.
    The BoE setting interest rates to zero will only prolong the agony! The reason we are in this mess is becasue of artificial low interest rates that encouraged reckless lending and spending. Money should be lent on the concept of supply and demand, with savings being the supply. From 2001, the BoE lowered interest rates to ridiculous levels, ahead of the rate of savings. http://news.bbc.co.uk/media/images/3...103_300gra.gif

    They were creating money out of thing air. Now this is exactly what will continue to happen in the US, creating money out of thin air. When the FED lowers interest rates, banks tend to loan more from the Central bank. The FED, doesnt have any money, the Government doesnt have any money in its reserves, so the money is literally created out of thin air. All this does is create a short term boom (take the Dollars current strength) while allowing for serious problems in the future. Inflation can be measured as an increase in money supply, sadly, the FED decided that it would cease to publish its M3 figures because it wasnt needed.

    http://bigpicture.typepad.com/commen..._inflation.png

    That is my point, that aslong as the FED and other Central Banks continue to create money out of thin air, the threat of runaway inflation and the creation of a new world currency is there. We shouldnt have central banks, interest rates should be determined by the market, where the amount of lending is comparative to the amount in savings.

    The bailout package (which 86% actually went on executive pay), the over 1.2 trillion dollar deficit is all having a massive strain on the dollar, and its coming to an end. Like I said before, January will signal a major event that will completely change the American economy.
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    (Original post by sean43)
    That is my point, that aslong as the FED and other Central Banks continue to create money out of thin air, the threat of runaway inflation and the creation of a new world currency is there. We shouldnt have central banks, interest rates should be determined by the market, where the amount of lending is comparative to the amount in savings.
    That's a very interesting idea, and much debated these days; is there a need for central banks? On the face of it; if markets are perfectly efficient under laisez-faire conditions; there shouldn't be a need should there? After all, if the market is "always right" when left to its own devises then surely the market can be relied upon to set interest rates. Why then have a soviet-style central bank system of unelected officials who wield more power over individual and national fortunes than any elected politician?

    Great questions Sean. Is Adam Smith's market really "perfectly efficient" and was Friedman right when he recommended the disestablishment of central banking systems in 2006? What we have at the moment is a mish-mash of ideas.

    But these are philosophical questions. I thought we were discussing your claims that a dollar collapse is imminent and the Chinese are jettisoning their reserves left right and center. I was also hoping that you could cite me some economists who share your view TODAY (and not eight months ago)

    It's up to you Sean. Just pick a topic and stick to it.

    Just out of interest, what do you mean by "the amount of lending is comparative to the amount in savings" At what ratio?
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    (Original post by sean43)
    The bailout package (which 86% actually went on executive pay)
    No it didn't. Source?

    They've actually only spent $350b of the $750b so far and from what I gather most of it has been stuffed under the mattress. It's helped bring LIBOR rates down but that hasn't helped consumers at all.
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    This is a very worthwhile and valid debate.

    It is surely well recognised that the current crisis is not the cause of capitalist failure, but of state central banking failure. The ever increasing money and credit supply is the root cause of the toxic assets that every bank is now burdened by.

    Now with the looming recession everyone seems to think the best action is to further increase the money and credit supply, yet nobody seems interested in the inherent irony of this plan. In the long term expanding the money and credit supply ever further stores up very serious problems and will most likely sow the seeds of the next recession.
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    According to George Osbourne (Shadow Chancellor) we could soon be witnessing the end of the Pound. :rolleyes:

    http://www.timesonline.co.uk/tol/new...cle5158548.ece
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    (Original post by Howard)
    That's a very interesting idea, and much debated these days; is there a need for central banks? On the face of it; if markets are perfectly efficient under laisez-faire conditions; there shouldn't be a need should there? After all, if the market is "always right" when left to its own devises then surely the market can be relied upon to set interest rates. Why then have a soviet-style central bank system of unelected officials who wield more power over individual and national fortunes than any elected politician?
    People who argue against central banking (like me) don't do so because they think markets are 'perfectly efficient.' They aren't perfectly efficient, because nothing is. We do so because we think that markets, warts and all, are still better than the alternative - the alternative which basically boils down to letting the government inflate the currency at will.

    Just out of interest, what do you mean by "the amount of lending is comparative to the amount in savings" At what ratio?
    Presumably he's talking about full reserve banking.
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    (Original post by DrunkHamster)
    Presumably he's talking about full reserve banking.
    Oh dear.
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    (Original post by yawn)
    According to George Osbourne (Shadow Chancellor) we could soon be witnessing the end of the Pound. :rolleyes:

    http://www.timesonline.co.uk/tol/new...cle5158548.ece
    Good. I'm hoping for the pound to collapse along with UK house prices. That's the only chance I'm ever going to have of returning to England.
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    (Original post by Howard)
    Oh dear.
    What's wrong with full reserve banking? I'm hoping there's more to your argument than 'oh dear.'
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    http://endthebailouts.com/2008/11/07...utive-bonuses/

    Theres the source Howard. As for these philosophical questions, well they are at the heart of the whole problem. If all you can do is suggest the same failed economic policy that got us into this mess (low interest rates, building up of debt) as the same way to get us out of this mess then we are doomed. That is why we need a complete change of the whole economic system in this country.

    The reason for my predicted collapse of the dollar is due to artificial low interest rates, which are currently happening, which stimulare the economy in the short term, which is happening, but ultimately lead to runaway inflation (because inflation can be measured as an increase in money supply, evidenced by my graph I linked in an earlier post) and the debasing of the currency.

    You cannot continue to create credit out of thin air, the more you have of something, the less it is worth. That principle applies exactly to the dollar, not how much you have, but what is it worth and in January I predict it will fall or a new world reserve currency will be created.

    Oh, predicting of the end of the dollar reserve system, http://www.youtube.com/watch?v=u0ET1nWgrYk from today.
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    LOL Im new here but I came across this discussion and couldn't resist some of us are very well misinformed about whats "really" happening

    Hope this helps in support of sean43 argument

    http://www.infowars.com/?p=6007
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    (Original post by sean43)
    There is absolutely zero chance of deflation happening given the current increase in money supply (yet again). You can trace the increase in money supply to the rise in inflation.
    LOL!

    http://www.telegraph.co.uk/finance/f...y-spectre.html
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    (Original post by Disorder)
    LOL Im new here but I came across this discussion and couldn't resist some of us are very well misinformed about whats "really" happening

    Hope this helps in support of sean43 argument

    http://www.infowars.com/?p=6007
    LOL! It's difficult to see how any of us might become better informed by reading anything on Alex Jones' web page.
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    As I have repeatidly said, the events will occur in January when the mega increase money supply as filtered down the the actual public. You can laugh all you want, the dollar will be replaced by a new reserve currency fairly soon. Fiat money systems always fail in the long run, and this one is coming to an end.
 
 
 
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