Thread: Is anything this video says real??

Originally Posted by Not Amused

The dollar losing reserve currency status:

1. Prevents the US from inflating away foriegn debt, most of our debt is owed to the Fed (where did they get it?), with the next largest being T-Bill to retirees.
2. Will increase the costs of all goods, foriegn and domestic. The question is how much. The dollar has fallen to foriegn currencies, and the cost of oil in dollars has gone up, while in gold, has remained the same.

My concern is the inflation that results when the trillions of dollars held in reserve in other countries flood the market. The dollar, like housing, has a value based on supply and demand.

The rioting in the streets will come when we can't borrow any more, and interest rates go back to normal, and the retired boomers have ballooned the amount of SSI and medicare needed, and the government stops paying them. They'll be joined by the government workers unions, that have lots their jobs, and the retirements.

The one thing the video has right is how fast it will happen - the financial crisis occurred when, after years of borrowing money a day at a time (so it is cheap), the lenders didn't renew the loans. One day they are solvent, the next......

My problem, is if it gets bad, how much value will gold, or silver have. You would be better off investing in non-perishable food and water.

Why will it come to that? Because politicians have kicked the can down the road, one election at a time.

Greece will be the canary in the coal mine as to how bad it can get. But, don't expect politicians to act even then.

While all that is possible there is ZERO chance that the US and a handful of allies will allow that to happen without war. If somehow the US dollar lost reserve status within a short time the dollar would collapse.

It is either war or economic collapse....our politicians are spineless and only care about re-election. They have no idea how to fix the current mess not to mention our debt issues.

Just wait till rates move upwards. I am wondering how we afford trillion/s of dollars in debt service. I am also wondering how US banks stay solvent. Too much debt. Too many derivatives. Rates can't stay at near zero forever.

Originally Posted by headhawg7

While all that is possible there is ZERO chance that the US and a handful of allies will allow that to happen without war. If somehow the US dollar lost reserve status within a short time the dollar would collapse.

It is either war or economic collapse....our politicians are spineless and only care about re-election. They have no idea how to fix the current mess not to mention our debt issues.

Just wait till rates move upwards. I am wondering how we afford trillion/s of dollars in debt service. I am also wondering how US banks stay solvent. Too much debt. Too many derivatives. Rates can't stay at near zero forever.

The dollar is relatively new to the reserve currency role, before that, the pound sterling had been - for 200 years.

There has been talk by other countries creating a reserve currency, including our allies. I haven't heard our sabers rattling. With our state of indebtedness, who is going to loan us the money for a war?

Politicians know full well how to fix the current situation. But, that action would lose them their elections, so they kick the can down the road, hoping the crash happens on someone elses watch. So, they send out their talking points to keep us at each others throats with half truths, and outright lies, so we don't pay attention to them.

And, our faithful watch dog, the media, is worthless - they get more viewers during a crisis, then by helping avoid one.

I'm still waiting and hoping to hear from Stansberry....

I think it's pretty spot on. I've done more reading about history than economics, but if you read about ancient Rome as she declined, it sounds a lot like our system right now. Most of the productive labor of late Rome was done either by German noncitizens, or by the providences, not the Roman people. which sounds a lot like the US and the Chinese factories and the Mexican migrants. Rome, much like us had a huge welfare state -- there was a dole of free grain, and the number of takers grew year by year until 200,000 people in the city got free grain, and later pork and wine were added to the free grain. http://en.wikipedia.org/wiki/Grain_s...e_city_of_Rome There were also problems of the Senate refusing to work on serious issues and instead focusing on the petty stuff and not working on the issues neccessry to keep Rome working. By any measure, I think we're in for it unless we take serious care to turn things around. It's possible that America itself could fall, and we're not even taking our debt seriously.