World economy talk

[tidus1203]

The USD is rebounding, commodity prices are dropping and the stock market is so volatile.... I say is this is all a wonderful correction and we should be thankful for it so that commodities do not become a bubble and the dollar does not get oversold so it can fall much more later

[uls]

The market was expecting a 1% rate cut but the Fed just cut .75%

Traders were thinking the Fed is done with rate cuts so they had to get out of their USD short positions.

Since commodities are used by traders as a hedge against the falling dollar, they had to get out of their long positions...specially gold.

Sell! Sell! Sell!

Commodities fell.

Gold dropped big time. Oil dropped too. If only oil can drop like gold.

This is evidence rising commodities prices were driven by speculators... not fundamentals.

Now if the freakin speculators will just go back to the stock market and stay the hell out of commodities.

Food and fuel prices will stabilize or even go down.

[frenchtower]

I have kept my portfolio partially in several ounces of American Eagles (gold and silver) and South African Krugerrands (which I later decided to liquidate at a winning range). I intend to keep a safe percentage of my position still in precious metals depending on how the market responds to the US economy.

Does precious metals still have that luster to protect investors in the long term? I was almost tempted to convert 75% of my investment as prices are still high from previous to present. Now if ULS is correct to say that gold prices are on a dipping trend, then I guess I'm more inclined to increase my gold and silver stash in the short stab. As far as I'm concerned, the US dollar already lost it's credibility, at least if the US reinstates it's New Rome status.

I take my hats off to tidus, empy and uls.

[frenchtower]

Hope this helps:
[ame="http://www.youtube.com/watch?v=4n3g5lUgkWk&feature=related"]YouTube - The inevitable collapse of the dollar[/ame]


...and this one:

[ame="http://www.youtube.com/watch?v=1w0LOtWmy_o"]YouTube - Jones on Gold and Silver[/ame]

[tidus1203]

Ayus yan ah si Peter Schiff You guys should also listen to Jim Rogers and Marc Faber. These guys know what they are talking about unlike those "So-Called" experts in the TV telling us that stocks are still the best asset class over the long run. Of course, they rip clients off from stock trading since they get their commissions there....

[uls]

Oil hit $112 per barrel last night in futures trading.

The drop in commodities a few weeks back was just a freakin correction.

The market is expecting more rate cuts from the FED.

Speculators are buying commodities to hedge against the falling USD.

oil, gas, metals, grains... everything we need to survive is priced in USD.

And the speculators are pushing the prices up everyday...

sh*t... gulo ito... there will be rioting in the streets if people go hungry...

[tidus1203]

The Japanese Yen and the Chinese Yuan (two very undervalued currency especially the Yuan). If there was a safe investment then it has to be the Chinese Yuan this thing will surely go up without a doubt.

I am gonna pat myself in the back here for awhile so bare with me . But the Chinese Yuan has breached pass the 7RMB to 1USD last week, it has pullback somewhat but I still maintain my RMB and have no plans of selling it. This will surely go up even more. Same for the Japanese Yen, the Euro is still solid but I am not as optimistic about it as the Japanese Yen and the Chinese Yuan.

[frenchtower]

Has anyone of you guys heard about "AMERO" ? There is so much buzz around the rumor mill that this will be the one single currency being eyed by the North America Union (NAU) to represent Canada, USA, & Mexico. The objective is much the same as the EURO. I guess the US is contemplating on seeking salvation to its recently unpopular currency thru this route. Any inputs sirs?

[tidus1203]

Has anyone of you guys heard about "AMERO" ? There is so much buzz around the rumor mill that this will be the one single currency being eyed by the North America Union (NAU) to represent Canada, USA, & Mexico. The objective is much the same as the EURO. I guess the US is contemplating on seeking salvation to its recently unpopular currency thru this route. Any inputs sirs?

It won't work as well as it will in Europe because of imbalances. You have a 3rd world country in Mexico and 2 developed countries of US and Canada. The economic imbalance won't work and the unified currency will hamper the 2 developed countries especially Canada (which is opposed to the idea by the way).

[uls]

The current Euro USD "position"

http://bigpicture.typepad.com/photos...k_cherry_2.png


hehehe

[uls]

Bailout:

http://bigpicture.typepad.com/photos...ke04092008.jpg


haha

[tidus1203]

Si Ben Bernanke ba yung nasa helicopter throwing life...este throwing money hot of the printing presses?

[uls]

kawawa naman ung mga passenger ng sinking ship.

Ung mga may ari ng ship and captain lang i-se-save ni Ben...

Goes to show ung "govt of the people, for the people, and by the people" is just a load of crap.

----

btw, i know the Fed is a private institution. But still...

[tidus1203]

http://www.cnbc.com/id/24618324

I can't believe that the Fed bases their interest rate policy on phony and fraudulent (intended or not) inflation figures. And for that reason the USD is an extremely flawed currency. I don't want to own a currency which has a central bank being blind with the real inflation figures and continue to be academic. Buti pa Australia and Eurozone they acknowledge that they have high inflation and are acting accordingly.

[uls]

Hahahaha

the govt agency that comes out with the CPI...

Ya those BLS guys...

They are on drugs.

[empy]

well, the advantage of US market investors is that information is freely available from a dizzying array of sources. so, if you want to take government facts with a grain of salt (and i agree you should), or if you simply are looking for some kind of support to back up whatever pet theory you have at the moment, you can easily find an analyst to tell you what you want to hear

[tidus1203]

A very good video so you can understand why the dollar is falling and why oil is high and gold is high. MABUHAY KA PETER SCHIFF!

[ame="http://www.youtube.com/watch?v=0ZnT2UTGWPM"]YouTube - Peter Schiff Interview with Don Harrold[/ame]

[Jun aka Pekto]

A very good video so you can understand why the dollar is falling and why oil is high and gold is high. MABUHAY KA PETER SCHIFF!

YouTube - Peter Schiff Interview with Don Harrold

Gold..... Right on the money.

We knew it'd be a sound investment back in the late 90's. That plus lumber (through the wife's family business back in RP). To top it off, we lived like it was still the 80's. Penny-pinching whenever we can. So now, we're in much better shape to ride off this new recession.

[tidus1203]

[ame="http://www.youtube.com/watch?v=3RhnHo3RDfg&feature=related"]YouTube - The Ultimate American Dollar Collapse[/ame]

Very educational video regarding the DOLLAR DECLINE. And yes the bulk of the decline just came during and after the 1970's and guess what? That is the time that the USD was de-pegged from GOLD. Remember folks its not that GOLD is getting more expensive, GOLD IS GOLD. It has never changed for thousands of years, its our paper money has severely depreciated.

[tidus1203]

More about inflation and how its being created...
[ame="http://www.youtube.com/watch?v=2RaIRxBpTt0&NR=1"]YouTube - Soaring U.S. Global Inflation[/ame]
[ame="http://www.youtube.com/watch?v=Ed4sv6ND5Qo&feature=related"]YouTube - Soaring U.S. Global Inflation pt. 2[/ame]
[ame="http://www.youtube.com/watch?v=2_xU9yD6x-0&feature=related"]YouTube - Soaring U.S. Global Inflation pt. 3[/ame]