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Post by Swampy on Feb 16, 2013 1:49:52 GMT -5
Australia's dollar may be overvalued, though I'm not so sure about that, because, like Canada, it has been going through a commodities boom, and, since the rest of the world is in recession or growing sluggishly, the digger dollar may actually be a good currency. That said, there is a danger of a currency war, as everyone may want to print money to lower the value of their currencies so as to make their exports cheaper. And that's why the G-20 have pledged not to do so. But they will be printing for another reason anyway, to pay their debts. So I guess the trick is for everyone to print the same amount, so they don't undercut each other. Life can be very simple.
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Post by boxcar on Feb 16, 2013 2:01:11 GMT -5
I think we are way ahead of the rest of the world in printing money. In the near future we may have to back up the truck to pay for groceries.
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Post by Sir John on Feb 16, 2013 3:16:36 GMT -5
The debts of most of the world's leading nations are simply unpayable.
The budgets of the world's leading nations are out of control.
Solution,
print the money to cover the deficits, thus inflating the currency to repay the debt with valueless toilet paper.
Problem solved.
SELL YOUR BONDS!
SJ
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Post by Sir John on Feb 16, 2013 3:17:07 GMT -5
........BUY PHYSICAL SILVER!
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Post by Sir John on Feb 16, 2013 3:17:35 GMT -5
.....AMERICAN SILVER EAGLES!
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Post by Sir John on Feb 16, 2013 3:18:43 GMT -5
.......LOTS!
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Post by Swampy on Feb 16, 2013 10:58:44 GMT -5
Platinum is also good, as is the right type of real estate. But I remain optimistic about the future.
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Post by Sir John on Feb 16, 2013 13:30:32 GMT -5
Swampy,
REAL assets, as in 'REAL estate' is good, no matter what happens a house is a house, and 10 houses (for rich lawyers) is a good investment and always will be. The only drawback is finding the renter that actually pays the rent and does not trash the place. Unemployed renters do not pay the rent.
But they are not good as an easily NEGOTIABLE coin that can be turned into food, or cash to pay a power bill etc. Silver is a lot easier than a gold one.
If you have a Platinum or Palladium coin and try to sell it, you will get a blank look from 99.99% of the population, and even then they will have little idea of its market value.
Coins for daily survival, and 1Kg bars for re-establishing normality afterwards. You can use the bars to buy houses off poor starving lawyers.
JMO
SJ
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Post by jerryfmcompushaft on Feb 17, 2013 11:30:31 GMT -5
Do poor starving lawyers eat silver bars?
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Post by mcnoch on Feb 17, 2013 11:42:57 GMT -5
The main suspects here were Japan and China. After the declarations of the G-7 and G-20 I think this topic is now done.
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Post by Swampy on Feb 17, 2013 11:49:58 GMT -5
Everyone knows that a currency and/or trade war would be detrimental, so they're trying to ensure everyone can grow together. The problem is, there is no paradigm to explain what's going on.
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Post by Sir John on Feb 17, 2013 15:11:26 GMT -5
Post #2
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Post by Sir John on Feb 17, 2013 15:19:37 GMT -5
Jerry,
"Do poor starving lawyers eat silver bars?"
No, they cannot, but a bar of silver will track the inflation rate (at least) just like an ounce of gold went to 100 Trillion Marks in Germany in 1923. German 100 or 1000 or 10,000 or 100,000 Mark notes were used to fire up the water heater, or wallpaper the house. mcnoch will confirm his (great?) grandfather's memories.
Fiat (paper) currency always ends up at its true value - NIL.
SJ
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Post by Sir John on Feb 17, 2013 15:25:27 GMT -5
mcnoch,
"After the declarations of the G-7 and G-20 I think this topic is now done."
I place little store on the 'declarations' of politicians and economists on the current situation, none have proved accurate so far that I can see. They defy basic common sense.
This 'topic' will not be done for 3 years at least, probably a lot longer. It will be headline news every day.
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Post by Sir John on Feb 17, 2013 19:52:10 GMT -5
Back to the OP, a currency war is looking almost unavoidable.
Most economies are in a mess and heading south, so generating exports via currency devaluation is the most popular way to go, not that it solves all that much. The hard bit is getting the advantage in the race to the bottom.
Most of the G20 (maybe 15) are in the same boat and their Central Banks are all printing like mad. AFAIK this has never happened before and will end in a MESS! The printing gets the Bonds sold, and the budget 'balanced', and currency devalued at the same time, so as stated, the end result is DOOM.
Fasten seat belts.
SJ
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