[PrestonSturges]

REREX (American Funds EuroPacific) has been very very good for me over the last 5 years, but you got to pull back when the US and EU both drop. For the first time since April 2008 I'm entirely out of the market as of a couple days ago, having moved everything into $USD money markets.

[copious.abundance]

If the dollar appreciates 30% over the next 6-12 months, it's time to head for the hills.

Told ya.

US dollar soars, everything else tumbles

What's really scary is that the dollar has only gained about 8% since this article was written.

[ColossalContrarian]

I've already lost $60 on silver that hasn't even arrived at my door yet! Wammo, Tuesday night got me good.

[EnergyUnlimited]

20 silver eagles (your likely purchase) won't make you rich... However, in some versions of doom-light scenario it can keep you going for 2-4 months.

[ColossalContrarian]

Maple Leafs actually and over time it really is just about saving money outside a bank and the dollar. Not everyone is looking to get rich. Sometimes it's Philharmonics, Panda's or the Kukabura (sp?) at this moment the Buffalo rounds seem best but I'll wait another week before making another purchase. Better than putting it in the bank IMO but I could be wrong and I know nothing about economics, I just hate banks.

[ColossalContrarian]

What's worse actually is I've been waiting to get my self a .44 Raging Bull and that was what I had to chose between, the Raging Bull or Silver. The price comes out less for the Raging Bull in my part of town ~$580 but I have a feeling 5 years from now the Silver will be worth more. Plus .44 ammo is getting pricey so it'd just be a money pit...

[PrestonSturges]

Once you have 500 pieces of brass you can say "Darling, it'd be crazy not to buy that reloading press!"

[ColossalContrarian]

Once you have 500 pieces of brass you can say "Darling, it'd be crazy not to buy that reloading press!"

Yeah, I'm a little late on that.... It would be money well spent no doubt!

[PrestonSturges]

I would have more, but a local gunshop used to give 10% off ammo if you returned a box of brass.

But I also rediscovered some ammo I'd bought 5 years ago, and that had definitely increased in value by $5 a box.

[kublikhan]

If the dollar appreciates 30% over the next 6-12 months, it's time to head for the hills.

Told ya.

US dollar soars, everything else tumbles

What's really scary is that the dollar has only gained about 8% since this article was written.

Whoa. Oily says its time to run for the hills. Never thought I would see this day. Next thing you know he will be building a doomstead and ripping on cornies. Stop it Oily! You are messing with me world view

[peripato]

If the dollar appreciates 30% over the next 6-12 months, it's time to head for the hills.

Told ya.

US dollar soars, everything else tumbles

What's really scary is that the dollar has only gained about 8% since this article was written.

Well for once Oily and I are on the same page. All the widespread nonsense about the dollar becoming worthless, blah, blah blah. In a crisis the dollar and treasuries are the retreat to beat and this crisis will be one for the ages - if it truly is it. Destruction for the dollar will come, but not before all other fiat currencies.


US dollar is at the stern of the world economy, all other fiats are at the bow...

[prajeshbhat]

Well for once Oily and I are on the same page. All the widespread nonsense about the dollar becoming worthless, blah, blah blah. In a crisis the dollar and treasuries are the retreat to beat and this crisis will be one for the ages - if it truly is it. Destruction for the dollar will come, but not before all other fiat currencies.

Apart from that, OPEC still accepts only the USD as payment. America is the only country that gets to buy oil in it's own currency. Now that is an exorbitant privilege. Even if the private demand falls, countries all over the world(including China) need oil for their military. (The military is going to be used extensively in the coming period of chaos). So they have no choice but to keep the dollar high. Sad situation.
Michael Hudson explains why countries tolerate it:

desire to prevent their currency from appreciating, limited options in purchasing alternative U.S. assets, fear of the U.S. military, wanting to be part of the U.S. "orbit", and "lack of imagination". He states the dominance protects the U.S. from austerity that it has subjected other countries to through the IMF and World Bank.

[NoWorries]

Does anyone here really believe the dollar will go up by 30% over next 12 mos (from date of article)?

[dolanbaker]

Does anyone here really believe the dollar will go up by 30% over next 12 mos (from date of article)?

More likely, most of the other currencies will fall 30% to make the dollar appear to be worth more.
If the Euro breaks up, then most of the "new" currencies will depreciate rapidly, those that remain in the Euro will probably stay on a par with the US dollar.

[prajeshbhat]

When all else fails, the reserve currency will be the final safe haven. So yes, the dollar could rise against all other currencies in the short run.

[TreeFarmer]

30% is, imo, the upper limit. I would NOT be surprised to see a 15% appreciation.

But then again, it is all in how you measure it. Against other currencies is one thing, against commodities in a contracting world-wide environment is quite another. I would NOT be surprised to see a number of commodities fall 50% in price relative to the US dollar.

Treefarmer

[peripato]

When all else fails, the reserve currency will be the final safe haven. So yes, the dollar could rise against all other currencies in the short run.

Exactly. The only thing that would prevent this eventuality would be if the U.S. economy collapsed ahead of either Europe's or China's. At this stage though it looks like Europe's is going to collapse first. Chimerica then gets to kick the can further down the road before curtain time, as the eventual death of either one would spell doom for the other too, so intertwined are they.

[peripato]

30% is, imo, the upper limit. I would NOT be surprised to see a 15% appreciation.

But then again, it is all in how you measure it. Against other currencies is one thing, against commodities in a contracting world-wide environment is quite another. I would NOT be surprised to see a number of commodities fall 50% in price relative to the US dollar.

Treefarmer

We saw this back in stage 1 of the GFC in 2008. Things are much, much, worse now and the authorities seem to be all out of bullets, as well as any credibility.

[PrestonSturges]

As I said before, the folks over at

http://theautomaticearth.blogspot.com/

have been predicting these macroeconomic currency and stock swings with remarkable accuracy for the last several years, and they aren't trying to scare you into buying a bunch of crap either.

[smiley]

This might throw a spanner in the works.

Government inching closing to shutdown
CNN