"Better-Performing Currencies"
posted by The Cunning Realist at Wednesday, November 07, 2007
Wednesday, November 07, 2007
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I am a New York City resident in my forties, an investment professional, and a conservative. I have an MBA from Columbia University.
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8 Comments:
Put your investments into something real(something more than paper and ink) The world has plenty of paper and ink. If you invest in gold, silver, and uranium you know your assets are always going to be worth something. As the price of oil and gold skyrockets and you begin to ask what the next best investment is...I'm thinking even with the surge in Uranium prices...Uranium is still a good investment. India and China caused the price increase with their new nuke plant constructions. The US hasn't entered that game for political reasons but as the price of oil continues to go up...there is only one real alternative to supplying large power demands. Wind, solar, corn, etc are nothing but pipe dreams.
www.kitco.com
Cha-ching!!!!!
Buy silver...buy gold.
plug for my fav investment advisor...
www.caseyresearch.com
jr. minining companies
gold, silver, uranium
Put your investments into something real.
Nothing is really "real" anymore, Goldhorder. That is, there is nothing whose value cannot be artificially and willfully manipulated upwards or downwards 60 times an hour before trading hours, during trading hours, and after trading hours.
Disagree grace...
a house is real...even if it is overpriced. You can live in it...make use of it. It has real value. Gold has real value. It can be used for jewelry or as money or as a hedge against your faith in your government's ability to maintain sound economic policies. A fruit bearing apple tree is real...it can provide you with something to eat. A fishing pole is real..etc.
A dollar is worth what the "market" says it is worth. Beyond it's use as money it has no value. A pencil might be worth 50 cents...but even if it is worth 1 cent tomorrow it still has value as a writing utensil. Even if commodity prices go down in a recessions. Their price will not go to zero. And their prices will be the first thing to rise because it is commodities that are needed to get the markets going again.
The dollar is only paper and ink. There is no difference between a 10 and 20 dollar bill except the design of the ink on it. If the economy goes South the value of this paper could go to zero. 1972 was only 35 years ago. It is not like our fiat currency has some kind of outstanding track record here. Everybody assumed all the naysayers were wrong...the patient might be proven right after all.
Paul Craig Roberts reports that "The End Is Near! - Gisele Bundchen Dumps Dollar."
Gold might be a good investment if you have it in your own possession. If it's kept by a brokerage firm that might go belly up when its other investments go sour, you could find yourself holding a handful of air. Needless to say, if you decide to store your own gold, then firearms and ammunition are also good investments.
Rural real estate might just be a good investment. If the dollar really does go to zero, you won't want to be in the Big Apple or any other large city. When Uncle Sugar can no longer meet the basic needs of his welfare dependents, all of our larger cities will burst into flame.
The way the dollar is dropping we will soon see that it will be cheaper to hire labor in America than in China and the Chinese will be building plants in America because of our cheap labor.
That is actually the great worry matt. Japan and Korea are our protectorates. Their political class has mixed with our political class for decades. Those countries have used trade surpluses to invest in the US. To buy American companies or build companies here. The Chinese tried to buy an American energy company with some its dollars and the congress shut them down!!! We have a very different relationship with China. All said...China has benefited greatly from embracing our "global economy". They know many of their trading partners are closer to our leaders than theirs. I don't see them trying to cause economic problems here...but I don't see them helping prop up our dollar anymore. Which is why the dollar is collapsing now. Unless the US finds another generous banker...which nobody other country seems stupid enough to do...the only thing I see for us is inflation until our debt gets manageable. Our government is going to have to start spending less money soon...and don't look for China to do much investing here. These guys have bought old steel mills....dismantled the useful parts...shipped them back to China and built them up again over there. Ohhh yes. We have a very different relationship with these guys.
Political power relationships are very important. College class free market theories sound really good in the class room but they never take into account shifting balances in political power. Ours is ebbing...China's is growing.
Our government? Spend less money? I'll believe that when I see it.
the only thing I see for us is inflation until our debt gets manageable.
Exactly right, Goldhoarder. It's called "monetizing the debt" and it was a forgone conclusion when the Republicans rode to power on the promise of a free lunch. Just cut taxes and everything will be peachy keen. I just paid off my house. Why am I not partying? I guess I should mortgage it to the hilt again. We're being rewarded for going into debt, and punished for saving.
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