I'm predicting the future devaluation of the US dollar

Wont be in the near future... China may be the worlds biggest market, but we are second or third still I believe.. and you cant yank that out of the world economy without a domino effect across the globe.

a reply to: onequestion

originally posted by: Painterz
The US dollar has been gaining in strength the last few years though. People have been moving money into USD from Sterling and Euros and all sorts, because the USD is seen as the strongest currency around at the moment.

Just a guess on my part, but the gaining strength in no small part is due to the 'new; oil reserves created by fracking and shale development. It makes the U.S. Dollar more 'liquid', lol. Backed by oil.

Rather than backed by gold, the U.S. dollar is backed by oil. Both China and Europe are net importers of oil. The U.S., on the other hand could easily export the stuff. Huge, huge change in the dynamics....

originally posted by: nwtrucker

originally posted by: Painterz
The US dollar has been gaining in strength the last few years though. People have been moving money into USD from Sterling and Euros and all sorts, because the USD is seen as the strongest currency around at the moment.

Just a guess on my part, but the gaining strength in no small part is due to the 'new; oil reserves created by fracking and shale development. It makes the U.S. Dollar more 'liquid', lol. Backed by oil.

Rather than backed by gold, the U.S. dollar is backed by oil. Both China and Europe are net importers of oil. The U.S., on the other hand could easily export the stuff. Huge, huge change in the dynamics....

No the worlds currencies are loosing value.....the flight to the us dollar has strengthened it artificially.....
Theres a huge # hole in the road ahead which the dollar is about to tumble into....

Text

a reply to: bandersnatch


Ok, they're all 'losing value'. They're all printing/issuing fiats without backing them. Shrinking economies add to it. Without backing, currencies are down to being measured against the GDPs. Even without an increase of 'dollars' or, whatever they are named in that country, less GPD means less value, internationally, of their currency.


In the case of the U.S. massive oil reserves, their currency is dropping slower in relation to the rest. Ergo, higher in comparison.


Does that make any sense or am I spitting upwind....again??

originally posted by: onequestion
I'm making a prediction that in the near future will see our currency devalued more and inflation to continue at a faster pace. We have control over certain variables and the amount of currency circulating our country the less it's worth making it more attractive to foreign investment because they have purchasing power here.

This isn't how currency works. Currency is a good like any other which has a supply/demand curve. Raising the supply doesn't necessarily lower the value if the demand goes up. The demand for money is typically referred to as the velocity of money. With a high velocity people are spending rather than saving and always need more. With a low velocity people sit on a lot of cash, when this happens even if the money supply contracts there can still be deflation. There's also the matter of population to consider, an increasing population can level out the amount of money per capita while the supply still expands.

originally posted by: Konduit
a reply to: onequestion

Trump is the only candidate I can consider to be an expert when it comes to trade markets and economics. It's been his profession for over 40 years.

a reply to: nwtrucker

The US oil reserves don't really have a lot to do with dollar strength right now....NW...
The dollars strength is really artificial....
The us is in no better financial shape than Zimbabwe really....
But they flee into dollars because their afraid....
1/3 Gold/Silver to hedge...1/3 cash in your mattress,1/3 in the stock market / bonds is the formula I think...

originally posted by: bandersnatch
a reply to: nwtrucker

The US oil reserves don't really have a lot to do with dollar strength right now....NW...
The dollars strength is really artificial....
The us is in no better financial shape than Zimbabwe really....
But they flee into dollars because their afraid....
1/3 Gold/Silver to hedge...1/3 cash in your mattress,1/3 in the stock market / bonds is the formula I think...

the proven & yet unattainable oil reserves... are NOT ever going to be exploited... (as per Alternative news media: the Chinese & India, the huge holders of USA Paper, have made secret deals to have a Lein on the Natural Resources like oil/minerals on government lands to secure the 'Liquidity' of the Trillion$ in Treasury Bonds/Notes held by those nations)

So--- the idea of Gold Silver mining oe even oil extractions on public lands by bidders of leases is a non-starter... WE have no resources to exploit, oil & minerals are already contracted to China/India

the dollar strength is not artificial it is just temporary but real...
every one of the nations we cause conflicts in need the access to Billions of USDs to keep the battles raging

* then the requirement that the USD ia also the required Petro-Dollar for trading in oil
* then the requirement that the Trillion$ in Derivatives all across the financial global world can ONLY be settled in USDs

with this trident of forced 'need' to settle accounts in USDs give the USD Its' 'strength'


As for the allocation of your USD fiat-money-wealth...
1/3 PMs
1/3 Cash
1/3 Bullets-Butter-Bacon...food, water, barter items, self-defence, prepper stuff in general


well, that's my take on a couple members' replies in a broad brush manner, ty


oh, watch out for

originally posted by: bandersnatch
a reply to: nwtrucker

The US oil reserves don't really have a lot to do with dollar strength right now....NW...
The dollars strength is really artificial....
The us is in no better financial shape than Zimbabwe really....
But they flee into dollars because their afraid....
1/3 Gold/Silver to hedge...1/3 cash in your mattress,1/3 in the stock market / bonds is the formula I think...

I humbly suggest you might be underrating the value of the world's biggest oil reserves may be assessed by those bailing from other currencies. One only has to look at the huge drop in the Canadian Dollar, largely attributed to the drop in oil prices, if I understand it correctly.

It may only be perception based and in reality 'artificial' but looking at the Eurozone and the Yuan, the U.S. looks the best bet. A sorry state of affairs....

originally posted by: St Udio
* then the requirement that the USD ia also the required Petro-Dollar for trading in oil

The dollar as mandatory petrocurrency only applies top OPEC and not all of them sell exclusively in dollars.

As long as debt can keep growing at a rate of at least 12% per year then currency will not be devalued. If the growth rate of debt slows even a small percent then currency will have to go somewhere else, like into prices.

How can we keep the debt growing? Easy make sure trade remains imbalanced. The difference between exports and imports becomes debt. Keep growing the imbalance, that has worked for almost 50 years.

"U.S. Department of Commerce
Exports of goods increased $1.8 billion to $118.6 billion in February.
Imports of goods increased $2.7 billion to $183.3 billion in February."
www.bea.gov...

How can we keep the increasing trade imbalance going? Easy, keep buying stuff from overseas and try not to manufacture much in the U.S. or those goods may get exported, decreasing the trade imbalance.

We have to keep importing stuff and stop exporting stuff or debt growth will slow down and the dollar will devalue rapidly into hyperinflation.