Comments on Market Skeptics: Bad Ways Of Betting Against The Dollar

Anonymous said... You guys fail to realize one th...

2009-07-10T17:40:35.075-07:00

Anonymous said...
You guys fail to realize one thing, and one thing only:

There is no alternative to the US dollar for a reserve currency.

All you doomsters need to get some sunlight, I swear...

If and when this new alternative should rear its head then we can talk, but until that time you guys are only adding perception that you're all insane.

Dig?

I love the "there is no alternative to the US dollar for a reserve currency" argument. Everytime I hear it, I imagine someone standing on the deck of the Titanic on the night of April 14, 1912, and declaring, "this boat can't possibly sink because their aren't enough life boats!"

The lack of viable alternatives doesn't mean the dollar can't sink, it simply means that when it does go down, it will be a trajedy of epic proportions which will be remembered for centuries to come.

Dig?

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Anonymous said...
Pfff, my ass, have a look:

Record US soybean crop, No 2 corn crop - USDA

You obviously haven't been reading my blog very long. Try reading some of my past entries:

USDA Deliberately Misleading Investors To Hide Looming Food Shortage
More USDA Propaganda
USDA's India Estimates Are Bogus
*****Clear Evidence Of Wheat Manipulation*****

If you want to believe USDA estimates, that is your right. However, be sure to consider just how bogus these estimates are:

In June, the Buenos Aires Grain Exchange said the Argentine wheat crop may fall to 6 MMT this year from 8.3 MMT last season, according to a report on Bloomberg (here).

USDA June estimate for Argy wheat: 11.00 MMT
USDA July estimate for Argy wheat: 9.50 MMT (They finally lowered it a little bit today!)

So in June, the USDA was saying Argentina would produce 11 MMT and the Buenos Aires Grain Exchange (which is much better placed to know) was saying 6 MMT. Pretty big disconnect no?

How is one to take you serious now Eric?

Easily. It is the USDA which has become a joke.

Eric, One really has to wonder about what you say...

2009-07-10T06:47:01.285-07:00

Eric,

One really has to wonder about what you say when it comes to not only the dollar collapse (because really its not going to happen), but also now with agriculture.

"The sky is falling, the sky is falling!"

Pfff, my ass, have a look:

Record US soybean crop, No 2 corn crop - USDA

How is one to take you serious now Eric?

I have a question about economic theory. I've been...

2009-07-10T03:30:12.803-07:00

I have a question about economic theory. I've been reading about it in the internet and I couldn't find something.

Is there an index that measures the rate that the various money supply measures (M0,1,2,3) transform from one to another in an economy?

For example, if I sell an asset and walk away with cash in my pocket then we transformed a part of M3 to M0 (I think). Is there an index that measures the rate of those transformations?

I know that M3 has M0 inside. I was thinking something on the lines of

d(M3-(M0+M1+M2))/d(M0)=Dm3tom0
d(M3-(M0+M1+M2))/d(M2-(M0+M1))=Dm3tom2

or something.

The Dollar is Doomed, I tell ya! America has to m...

2009-07-10T01:37:06.046-07:00

The Dollar is Doomed, I tell ya!

America has to much debt and soon will default!

American defaulting on its debts is paramount to the ends times!

Oh the humanity, the humanity!

Yeah, yeah... w/e.

You guys fail to realize one thing, and one thing only:

There is no alternative to the US dollar for a reserve currency.

All you doomsters need to get some sunlight, I swear...

If and when this new alternative should rear its head then we can talk, but until that time you guys are only adding perception that you're all insane.

Dig?

Anonymous said... Eric, you always say to buy phy...

2009-07-10T01:34:48.317-07:00

Anonymous said...
Eric, you always say to buy physical gold. But what about physical silver?

It is easier to write "buy physical gold" than "buy physical gold and silver". I am bullish on both.

A weak dollar DOES NOT NECESSARILY give US busines...

2009-07-10T01:25:48.090-07:00

A weak dollar DOES NOT NECESSARILY give US businesses an advantage. Please consider input costs! The current global trends are towards keeping one's own resources and giving em at a discount to the own people and businesses. Therefore US businesses will ONLY have an advantage if the US were a resource-rhich country.

Eric, you always say to buy physical gold. But wh...

2009-07-09T21:01:08.496-07:00

Eric, you always say to buy physical gold. But what about physical silver?

Those who ridicule Eric's prediction regarding the...

2009-07-09T20:31:00.454-07:00

Those who ridicule Eric's prediction regarding the Dollar should take a look at the first graph displayed on

http://www.theoildrum.com/node/5553

That graph displays the buildup of US Treasury debt over the years versus the depletion of US natural resources (exemplified by the declining oil reserves remaining in US soil). Looking at that graph and contemplating its consequences, it is clear to me that the US must default (either directly or indirectly via hyperinflation). It is not a question of whether the US will default. It is only a question of when it will default.

Take a look at that graph and think about it for a few minutes.

Those people who complained about losing money in ...

2009-07-09T20:19:26.358-07:00

Those people who complained about losing money in Iceland are lucky they got any money back at all! I mean the country's currency and economy completely collapsed. There is one sleazy character who pumped Iceland for years and never mentioned it again after it all fell apart - read about it here: http://soyouthinkyoucaninvest.blogspot.com/2009/03/beware-of-false-prophets.html

As for gold, if you are so worried about deflation and economic collapse causing gold prices to fall, hedge your gold exposure by shorting highly cyclical markets like stocks and oil. Problem solved.

Implicit within the deflationary argument is a tac...

2009-07-09T19:04:19.703-07:00

Implicit within the deflationary argument is a tacit acceptance of fiat FRN's and the accompanying corruption contained therein.

Global communication has rendered much of the strategy involved with a reserve currency impotent. In other words, the cat's out of the bag. There is absolutely no way for the United States of America to avoid debt default without a substantial dollar devaluation. In 2010 debt to GDP may crack 100, and unlike the postwar environment the last time this happened, oil is very expensive. In case you haven't noticed, we've got some competition in the export department as well.

The S&P 500 now moves in a proportional inverse to the USD. That may serve to increase domestic sentiment towards a devaluation (much like 1933). The prisoner's dilemma serves as the only effective counterweight, which might be negated in a bum's rush towards the exits. That, coupled with market manipulation have put gold and silver on sale. Take advantage.

The ECB's inability to print money makes the euro ...

2009-07-09T18:25:08.822-07:00

The ECB's inability to print money makes the euro ATTRACTIVE compared to the dollar

Matbe, but.. Trichet looks like he does not know much what printing is, but have you already read following article? He likes monetizing too and "lends" to banks hundreds of billions and it seems it is only the beginning.
Merkel is shouting for stopping it but I believe she will change immediately as nationalization of banks is coming.

How the ECB’s fig leaf has completely withered away

I think you are going to get killed on your gold c...

2009-07-09T18:05:49.538-07:00

I think you are going to get killed on your gold call. Yet another inflationista dellusional will bite the dust.

Comments on Market Skeptics: *****Bad Ways Of Betting Against The Dollar*****