I own a large number of shares in gold mining companies. They are up around 50% since I bought them. I read somewhere it is still legal for gold to be confiscated if a national "emergency" is declared. So, I chose investing long term in gold mining stocks as a "hedge" against a monopoly money dollar.
What will you do to protect yourself against the upcoming destruction of the dollar?
- Thread starter peilthetraveler
- Start date
When i say worthless i mean like argentina worthless, or 1920s germany worthless. Its a REALLY LONG conversation on why i think its going to be worthless, so without going into too much detail i will just say it like this. Our monetary policy right now is that we have record low interest rates to get inflation going and we are trying to punish people that save money and reward people that spend money by putting out these ridiculous programs like 8k dollars to people that buy homes now, or that cash for clunkers program where i think they want to give 6k to people who have cars older than 2001 to buy new cars (which is silly because they'll give that rebate even if you buy a foreign car.)
Economic growth is not a function of spending money, it makes spending possible, but you cant spend your way to growth...you can spend your way to bankruptcy, but not to growth. Our government is actually doing the EXACT opposite of what it should be doing.
Think about your own finances...How do you increase your wealth? You save money, then invest it. Thats the way that works. Why should the government do any different? No...the government is that crazy neighboor who spends all his money and will max out his credit cards just to show you he has more money than you. We both know that he will eventually go Bankrupt, but when people see him, they think he is doing well and is successful. Alot of people will invest money with him because they see his ferrarri in the driveway. Little do they know he's gonna make bernie madoff look like small potatos.
This collapse started with Regan in the 1980s. We outspent the soviets so that their economy would collapse. They only collapsed 20 years ago. It should'nt be too big a surprise that all that spending would collapse us too. If they just would've let the banks fail, it would've been better for us in the long run, but hey...at least we kept the party going another year or so. Now at least not all of us will be blindsided.
It is a race to the bottom. Good traders will be on the right side of the currencies... it's a time for traders, the death of buy and hold for awhile too... as we inflate like mad stocks will lose ground to the dollar and in the event of hyperinflation, trading index futs and stocks could become silly, the daily range won't support any kind of life, it will have to be the currencies for awhile then when things settle we will have to see what's going on and make more decisions.... always a challenge... I have real estate and gold for the long term and a trading account for the interim term.. the only foreign exposure I'm going to have will be in the form of Forex trades. If I really had a lot of wealth I might be buying quality foreign companies but really, why not just bypass all that and trade the Forex?
THATS A BET! You all heard it! 10oz of gold that the dollar will be worthless. But lets examine the word worthless....its two words put together...Worth and less. So as long as the dollar is "worth less" than it is today, i win that bet.
I'll get my lawyers to draw up the contract first thing monday morning, ok? =D
These guys on CNBC said the same thing as you in 2006 when they were saying that housing was not going to crash, but go up 10%, and later that MER and WM and BSC was a buy and when the dow was at 13k we were past the worst of the credit crisis and the dow was going to 16k soon.
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