The Falling Dollar & Rising Gold !!! What you NEED to know for 2006

As a common person, my understanding of the economic forces that control the world was lacking the ability to determine the current situation facing the Dollar.

Recently, I have been taking courses on Economic and the Stock Markets as well as other securities in order to pass the series 7exam and become a licensed Securities Broker.

While researching the current value of the American Dollar, I have come accross many things that have me terrified of the future economic crisis that we will be facing this year and moving forward.

I have no doubt that their is a COVER-UP taking place within our govt. to hide the true value of the dollar, and the true inflation rate. This will be very hard to explain, there are several things happening here...and they are all happening at once...RIGHT NOW!

1. The Stock Market Crash of 2000-2001. The Terrorist Attack on 9/11 was directly aimed at taking out the World Trade Center...but that wasn't the terrorists main objective. The Attack on 9/11 was an attack on the Stock Market and Economy of the USA. This is evidenced in the fact that the terrorists "Short Sold" the market immediately following the attacks, and lead the way for other investors to pull out of the market causing the Stock Market to be closed for 3 days... the first time it has EVER been closed in history.

www.suntimes.com...


2. Greenspan, in order to "stimulate" the economy...to get us back on the forward path then Lowers the interest rates down to the lowest level in history. Here's where it gets tricky. When the Federal Reserve Bank lowers the interest rate it does so to increase "borrowing". Whenever money is borrowed from a bank, more money in created. This is called the multiplier effect. If a bank borrows 1000 dollars from the FRB, then lends that same 1000 to a borrower...the borrower will either use the money or will deposit it at another bank. In any event the money will end up at a new bank where it will be borrowed again by another person...and more money is created.


3. The USA National Debt is past the point of no return...especially when you consider that we sell MUCH less than we buy, causing a Trade Deficit.
It is clear that the only way to LOWER our debt is to decrease the value of the dollar. This is the reason that China and others are talking about switching their Reserve Currency to the EURO, and why the Iranian Oil Bourse will start trading OIL and Gas in Euro's and not the Petrodollar.

www.globalpolicy.org...


4. With every NEW dollar that the FRB creates, the dollar in your pocket becomes less valuable. This is called inflation, and is a political tool used to make the populace feel like they are more wealthy...when in fact the value of money is just an illusion.


bigpicture.typepad.com...


5. During the Clinton administration, the Govt. changed the way we MEASURE inflation...by changing the "basket of goods" used to determine the CPI (consumer price index). So the Rate of Inflation numbers are not the TRUE rate of inflation, it actually MUCH MUCH higher!!!

www.gillespieresearch.com...=343


6. The interest rates that banks have been offering are Equal to or in many cases LESS THAN the TRUE Rate of Inflation ...which is why the long term bonds are trading at an "interest rate inversion" Which means that the long term rates are the same as the very short term interest rates...showing you how the traders and economists feel about the long term future of the economy.


7. The Value of Gold, which is the BEST investment to Hedge against a rise in the value of the dollar or any national currency going through an inflationary position,...Has gone through the roof in 2005. I was under the impression that the value of Gold went up World Wide... because of greater demand. But thats NOT the case at all. The value of Gold has jumped in DOLLARS ONLY!!! What does this mean? The dollars in your pocket are about to lose more of their value in 2006.

See this chart below.... ALSO, this chart would give you a better idea of what the TRUE inflation of the American dollar is ... and its NOT pretty.

view.e.newsmax.com...

The Federal Reserve Bank has destroyed the American Dollar and you and your Family are about to pay for it. I expect the cost of Goods & Energy to increase to the point where a World wide market crash will become self evident in the near future, as a result of the HYPERINFLATION that Greenspan caused.

Is it any suprise that the Federal Reserve Bank announced that effective March 2006 they will no longer be publishing for public disemination the M3 numbers, which are an aggragate total value of all dollars that are in circulation and being held in banks?


The only HEDGE against HYPER-Inflation is buying GOLD & foreign Currency. The OLD money knows this, and GOLD is being OVER SOLD right now. What does the "old money" know that you don't know? You should want to find out!

It happened in Germany during the Wiemer Republic in 1910's and I believe that it is about to happen again IN AMERICA.
goldismoney.info...

There is a lot more on this subject that I have not yet covered in this post,... I empower you to do your own searches on the web and on ATS ... the truth is out there, but don't expect the MEDIA to tell you!

If you didn't understand anything that I said...please feel free to ask, there are no stupid questions....only stupid politicians!

And for these reasons... I believe that the next terror attack will be against the New York Stock Exchange... or one of the other Regional Exchanges.

What reasons?

in 1993' the Terrorists attacked the World Trade Center,....and failed, only to complete their goal in 2001. The other part of their 2001 Goal was to crash the stock market,...and failed.

Well wouldn't logic tell you that they are going to make the stock market their target???


And wouldn't the Govt and the Federal Reserve Bank, benefit the most from an attack that creates a stock market crash....because they then could blame the crash on something other than thier own incompetence and irrational spending and creating money exuberence? They can say to the people...the terrorists caused the Inflation and stock market crash.

Good post Wheretohide, very informative. Then also intangle the whole oil fiasco in with this, and you start to see the bigger picture.
You get one of my Way above awards for the month.

Excellent post.

I've read about the financial side of things before, in Jim Marrs' Ruled By Secrecy, I think was the last time I came across it in any detail.

I have a hard time remembering it all, because it's such a tangled little web, but as I'm reading it there and then, it's always a light bulb moment.

The whole banking model is corrupt - Fiat money, and fractional banking, all this stuff - it makes money worthless - which I see as all part of the illusion - Keep the worker bees concentrating on their shiney pennies, when the pennies are in essence, worthless.

Which leads me to the thought that those in power don't clamour for money, but for something else - Power? Status? Control? Something more sinister? Who knows. They say 'follow the money' - but what do you follow after you get to the money?.....

Any way, excellent post.

A little bit more about the US Trade Deficit .... not to be confused with the National Debt or Budget. The Trade Deficit is the measure of American Imports vs. American Exports.

While the Dollar was strong, our Exports were very expensive to other Nations...which is why we have such a large trade deficit. The dollar was strong and foreign currency was weak, which means that Foriegn Exports were very cheap to Americans. Take a look at the Automobile Industry, there is a reason why Toyota and Honda are the largest sellers of vehicles in America....because they are cheap.

HOWEVER, now the American dollar is falling... which means that IMPORTS will become more expensive to Americans...while our Exports will become cheaper to other Nations.

De-Valuing the Dollar will cure 2 huge problems facing America...1. It will stop Imports into America, while America becomes an Exporter...which will lower the trade deficit. 2. It will lower our National Debt...not by paying down the debt...but by CREATING NEW MONEY to pay for it!!!

The Problem is ... China and Japan don't want us to Monetize our debt...because, ok here let me try an example. Say I owe you $100 and there are $1000 dollars in circulation. Then i would owe you 10% of my dollars. BUT, to pay you back your $100 instead of giving you 10% of my money, I print $1000 new dollars. NOW you still get the $100 dollars that I owe you, but the value of those dollars is only 5% of my money....and therefor less valuable to you. Would you be happy? If you didn't understand inflation and fiat money, you probably would be happy because you got the Dollar Amount that was owed to you. But you have to understand that the Dollar Amount is NOT THE SAME as the Value of the Dollars owed.

China and Japan know this ... and do you think they are happy that they have been buying BILLIONS of dollars of our debt since BUSH W. came into office.


The OIL problem is the immediate problem facing the dollar. The Value of a FIAT money, like we have is only worth what other nations are willing to pay for it. This Dollar has been artificially high, because ALL OIL PRODUCTS are sold in american dollars...called the PETRODOLLAR. Other nations that want/need to buy oil must have US DOLLARS in their reserves to purchase oil.

NOW, 1 month before America attacked IRAQ, Saddam Hussian was about to begin trading its OIL in EUROs instead of dollars. If they were successful they would have been responsible for devalueing the american dollar at the height of the USA recession....which could have caused a crash. But, the Bush Administration made up a story about WMD's and off to war we went. Once we toppled the statue of Saddam and secured the Oil fields intact, we made sure that IRAQI oil was traded in only American Dollars.

BUT GUESS WHAT!!!! In MARCH 2006 IRAN IRAN IRAN is now planning on creating an OIL market to sell its oil products in EURO's rather than Dollars. We all know that it would take a few years at least for IRAN to be able to create a viable nuke weapon...but we are pressing the UN for WAR NOW....hmmm.

The RUSSIAN deal, that states that Russia will enrich the uranium for IRAN on Russian soil is an attempt to dismiss the NUKE THREAT, and show the world what this next war is all about... The Falling American Dollar.

Also, I mentioned in my first post that the CPI (consumer price Index) is the measure of inflation in our economy. One of the key goods measured in the CPI is the price of OIL. If OIL goes up in price, there is more inflation.

And there are people talking about OIL going to $100 dollars a barrell...from 60!

And you all know that AMERICA doesn't get its oil from IRAN right? America gets its OIL from MEXICO, Venezuela, and least of all Saudia Arabia.


I just wanted to make sure that you all understood why we will be going to war with IRAN this year, and emplore you not to believe the Politicians when they tell you its about their NUKE PROGRAM.


78 vies only 2 POSTS .... COME ON PEOPLE, you need to post in order for this topic to continue to be viewed, and People need to know what is happening in the world RIGHT NWO!

I was going back over some of my other threads... This one is from January... I don't claim to be a psycic...and I don't have any special powers...its just that if you can add things up in your head...then you can predict a possible outcome.


Why didn't ANYONE ELSE Figure this out??? Why don't you know about it?



This was FROM JANUARY! Thats When Gold was trading around $550...and before OIL went above $70! And WAY BEFORE This Current "Inflation" crisis...trust me you will hear more about this next month when the June CPI and PPI come out.


Why Do you not pay attention when I post something? Why don't you pay attention when others try to warn you? You could must realize that if you can predict possible future outcomes...then you could benefit from it finacially???

[edit on 21-6-2006 by Where2Hide2006]

I think their in shock!!
I sure as h.ll am I am so sick of our Goverment lieing to us.
If this is the case, then we have henchemen running this country.
What do we do about this,and how do we get the truth out there for everyone to see?

Originally posted by Where2Hide2006
7. The Value of Gold, which is the BEST investment to Hedge against a rise in the value of the dollar or any national currency going through an inflationary position,...Has gone through the roof in 2005. I was under the impression that the value of Gold went up World Wide... because of greater demand. But thats NOT the case at all. The value of Gold has jumped in DOLLARS ONLY!!! What does this mean? The dollars in your pocket are about to lose more of their value in 2006.

See this chart below.... ALSO, this chart would give you a better idea of what the TRUE inflation of the American dollar is ... and its NOT pretty.

view.e.newsmax.com...

Interesting post. I cannot fully take part in the discussion, seeing that I am not American. But I am on the other side of the spectrum.

As the Dollar destabilize our (South Africa's) economy stumbles as well. The Rand/Dollar exchange reached its highest point in two years this week. $1.00 = ZAR7.02. That means anything we buy from outside the borders is more expensive. Oil (fuel/petrol) prices are about to reach the highest mark ever...

But, you would say, we (South Africa) are one of the biggest Gold producers in the world?! Let me tell you that the gold price has absolutely no affect on our economy. I have never been directly affected by the gold price.

So my point is that even though the gold price is at record highs - which should be a good thing for a producing country like South Africa - it has no affect on Joe Public's pocket. It's the mine owners (and maybe the government?) that smiles all the way to the bank.

So, give an an average lay person some advice here, please?

Should I take my 401K and just cash it out and put it somewhere? Should I take my kid's college roth fund thingy and cash it out too? How about the very few bonds I have? They only reach about $2000 tops for them. I'm kinda worried about having my money tied into the stock market, should I be? And one more question: what about my cash in the savings?

I don't know what to do with any of it. Worst case would be the banks close and everything is locked up and NO MONEY AT ALL for God knows how long. Didn't this happen in the great depression? Now, by no means am I rich, I'm just an average hard working person. I don't squander my money and I really put forth an effort to "secure" my future.

Any tips?

Originally posted by Where2Hide2006

And you all know that AMERICA doesn't get its oil from IRAN right? America gets its OIL from MEXICO, Venezuela, and least of all Saudia Arabia.

What about Canada?

Your # 1 source !

Source Link

Beware the loonie

I understood that the last time that GOLD went on the rise and almost reached a 1000.00 the Gov sold off Fort Knox reserves of gold and effectively wiped out the deficit at that time. How accurate is this?

Is it possible that the US Government issued te PATRIOT act and other laws so that they can control the people once the financial crisis starts and people start loosing their savings and cannot pay of their morgage.

Interesting topic


here watch this movie trailer and you'll be amazed to find out that the American Federal reserve bank isn't federal at all, it's a privatly owned bank...

According to this video the Dollar's real worth is about 0.04dollar cents.
Can anyone tell me if this claim is true ?

having the dollar's value lower would help decrease the trade deficit and probably create a few jobs around here in manufacturing but, do we still have the equipment and workers needed to produce these products after the many decades of neglect? how long do you reckon it would take to kick start our manufacturing sector back into production, not to mention the "monkeys" to work in them. (don't forget that many of these workers have long ago changed careers and have no desire to return to your status of "monkeys", especially at a wage that would be more competitive to the slave wages paid by china. )

I've already suggested to my husband that he buy a wheelbarrow, just so we have something to haul that ton of money down to the store for that loaf of bread!!

Great post WheretoHide!

I too have been watching stocks/resource/bohds etc for some time and the signs are not good for the global economic environment over the next 12-18 mths. The complex interconnectivity of our global economy is such that the ramifications of US meltdown are horrific - and I'm watching it all from the hikks in Oz - I feel for you all in North America!

Are the KBR (Halliburton) detention centre contracts a precaution against civil strife in the wake of a potential crisis - New Orleans is hardly an inspiring model?

Are the minutemen/NG troopers down on the Mexico border ready to keep dissenters in?

Is the forthcoming assault on Iran also an (however ill conceived) attempt to drive the Us economy via its war engines? Just look at the other infrastructure spending on roads etc just like all declining industrial empires.

Do the Chinese know what they are doing when they are buying many US treasury bonds etc - they have a deft hand when it comes to finances and strategy: less hubris and much more depth and contemplation?

Personally I have tried to remain financially solvent, not debt-laden (I have a very modest private housing loan) and live on a land co-operative in a mutually supportive environment in a solar powered house with clean drinking water and my only utility cost is the telephone line. This gives me much personal autonomy from the system and much financial freedom. As a parttime educational professional/father of 2/partner I am engaged with the system but not slave to it. This state of balance has taken us some 9 years to achieve since we began but the rewards have been outstanding.

I urge all thinking people to adjust their lives accordingly to enable greater personal autonomy and less reliance on our financial/industrial systems. Self-empowerment seems to be the only solution to our problems of monetary bondage and corrupt state governance.

The anarchist in me says "BRING IT ON!"

The humanist in me says "Tread carefully - there is a dog poo on every lawn"

The Fool in me just smiles as if to say "Do what thou Will"

Originally posted by Where2Hide2006

Recently, I have been taking courses on Economic and the Stock Markets as well as other securities in order to pass the series 7exam and become a licensed Securities Broker.

I have no doubt that their is a COVER-UP taking place within our govt. to hide the true value of the dollar, and the true inflation rate.

I've got a series seven, too. Had it for a decade. But I bet you won't listen to me, just because of it.

Anytime someone starts talking about "the true value of the dollar" (or anything else!), you want to put on your sceptic hat.

Can I sell you some commemmorative Elvis plates? How about a Civil War Chess set? Their true value is in the millions. Cash or check only, please.

What I'm saying is this: The dollar, like any other liquid commodity, is publicly traded in exchanges around the world, 24 hours a day. Government actions a drop in the ocean of business people from every nation buying and selling every currency as they do business.

The value of the dollar is what someone will give you for it. That's the definition of value.

There are two major currency markets in the US (NY and Chicago), even more smaller markets (like Philadelphia, which started modern forex) and dozens online.

I can guarantee the future direction of the dollar.

It will go up soon.

At around that time, either just before or after, it will go down.

Then, it will repeat, before reversing the pattern.

It's also important to remember that about half of all new forex accounts are opened by persons who think a given currency is about to collapse.

Even more importantly, 95-98% of all forex traders lose money.

I'd give you some advice, but hey, I get paid for that service; so no dice. And I'm not trolling for clients here. If you want loads of PRICELESS (or is that value-less?) advice, check out the financial bboard at Yahoo or elitetrader.com

And remember, free advice is generally worth every penny.

I will say that this post contains one of the truths that enables me to make solid predictions of future market behavior year after year. But which sentence is it?

I'll never te-ell

Originally posted by dr_strangecraft
Anytime someone starts talking about "the true value of the dollar" (or anything else!), you want to put on your sceptic hat.

But the dollar is a fiat currency and not backed by material, so isn't the strength of that currency based on the faith people have in the government? I am not saying anything will affect that faith, but if there was a catastrophe, then the dollar could suffer, right? Aren't Bill Gates and Warren Buffet shorting the dollar? Is their strategy the 2-5% that make money on the currency exchange? Doesn't Buffett hold more silver than almost anyone?

Originally posted by smallpeeps

But the dollar is a fiat currency and not backed by material, so isn't the strength of that currency based on the faith people have in the government? I am not saying anything will affect that faith, but if there was a catastrophe, then the dollar could suffer, right? Aren't Bill Gates and Warren Buffet shorting the dollar? Is their strategy the 2-5% that make money on the currency exchange? Doesn't Buffett hold more silver than almost anyone?

You're right, as far as you've written, but I'll go you one further:

Every vehicle of value, whether its gold, silver, art, classic cars, or a fiat currency, is only worth what you can sell it for. Yes, the dollar is a fiat currency. But in the end, its just a commodity, like flax or bananas, it is worth precisely what the market will bear.

And if you'll bear with me for just a moment, you'll realize that the dollar is not backed by faith in the government, so much as it is by the holder's faith in the future.

Think about that for a sec. It's not ultimately about what uncle sam does or says, it's about how good the dollar holder feels about his or her future. That is true, even for the government's enemies. Currency traders in suburban Tehran cannot in any sense be said to have faith in the US govt., but they do have faith that the USA will still be there in the morning. And so their market action will mimic what you see at NYMEX or CBOT. In fact, they probably have a satelite feed, and are watching CNBC right now.

As far as what the rich people are doing, who told you that? Did they open up their checkbooks and show you? Or did their PR rep tell some doomsayer, "oh yes, we're shorting the dollar!" The technical term for that type pronouncement is "the oldest trick in the book," and comes from the Medieval Latin term "rube." Gee, if you believe them, you probably need to go down to blockbuster and rent "Wall Street," "Glengary Glenross" and "boiler room." See, if you're such a big player that your aquisitions affect the market for more than 15 minutes at a stretch, then the market is illiquid, and you need more players on the other side of the transaction; you need to convince some more suckers to take the opposite side of your trade. Seriously, read this paragraph twice.

I noticed that you didn't mention George Soros or The dude that owns virgin records. They started shorting at the start of the Iraq war and have lost billions (if they ever really shorted things in the first place!) But the doomsayers have quit quoting from them for some reason. My fave quote from Richard Branson is his response when someone asked him how you become a billionaire. "Simple," he says. "You start out with TWO billion, and then proceed to lose half."

Let me tell you something about Bill Gates and Warren Buffet. Something critical: neither of them made their millions in foreign exchange. They have deep pockets, that's all. And if you think about it, that makes them every bit as qualified as Paris Hilton, on the direction of the dollar. Seriously.

I guess I should start a blog here with some books for interested people to read. Every time one of these threads pops up, I post pretty much the same material. And a couple of posters will start asking deeper questions, but I don't feel like giving out free lessons.

Here's probably one of the most important books I've read on long term (centuries) market cycles. I'd read it before I spent a penny in the markets:

The Great Wave: Price Revolution and the Rythm of History
By David Hackett Fisher
Oxford University Press
08/1996

A good (but dated) intro to the currency markets, and the breakdown of government monopolies in forex, is

The Vandals' Crown: How rebel currency traders overthrew the world's central banks.
by Gregory J. Millman.
(He's a journalist, not a pro; so the book is more of a fun read than actual instruction. Still, it'll help you figure out what angles you want to follow to attack the problem of making money in securities.)

Originally posted by dr_strangecraft
You're right, as far as you've written, but I'll go you one further:

Every vehicle of value, whether its gold, silver, art, classic cars, or a fiat currency, is only worth what you can sell it for. Yes, the dollar is a fiat currency. But in the end, its just a commodity, like flax or bananas, it is worth precisely what the market will bear.

Thanks for the great info. I don't claim to be an expert at all.

But isn't the paragraph above based on the current paradigm? I mean truthfully the US is a debtor nation and the dollar is a debt instrument. It's not backed by anything except like you said, the expectation that the US will not default on its massive debts. BUT if default does occur, what then?

As I understand it, all US citizens are massively in debt even if they don't know it. The dollar as a debt instrument allows the citizens to discharge their debts, but it will never be "worth" anything as opposed to actual commodities that do not lose value like gold and silver.

Doc, have you ever heard of people who mention UCC 1-207 and the "implied benefit" of discharging debts with funny money? I mean there are times when the dollar (or State issued tender) is seen as being worth little whereas real valuables are shown to be more resiliant. Ten thousand FRNs stuffed under your mattress do not count as capital unless someone believes that claim, like you say, but it really isn't capital in the true sense is it?

We're not talking about making money in securities, but rather planning for an economic implosion of the US. Really it wouldn't be too hard to cripple the US economy through any of the bogeymen like bird flu or iran war or loss of dollar as the oil standard would it? How is it that these things don't concern you? Anyway, since it can't be hidden that Mr. Buffett hoards silver, it seems prudent to imitate what he does, not what he says. This seems to be what you are saying in the larger context.

I don't think this thread is about making big bucks is it? I think there could be a little more financial wisdom shared here at ATS so claims to such knowledge without sharing it mean little. I had a series seven license also and it enabled me to see just how much lying brokers do and also what a keystone cops organization the SEC is. You have confidence in the dollar in spite of almost no policing of corporate activity or misconduct? I know for a fact that insider trading happens all the time without reprisal. What kind of future exists for a nation which doesn't police its institutions and then also exports that flawed monetary policy to the third world in an effort to control those poorer nations?

Anyway, all I am saying is that no nation can act in a fiscally irresponsible manner forever without paying a penalty. It seems to me like the US is being set up for a fall economically. Anyway thanks for the books. I'll read them for sure.

Originally posted by Where2Hide2006
You could must realize that if you can predict possible future outcomes...then you could benefit from it finacially???

Very good post W2H, but honestly, I have no idea what to do. Perhaps you could lead us in the right direction.

Originally posted by dr_strangecraft
Anytime someone starts talking about "the true value of the dollar" (or anything else!), you want to put on your sceptic hat.

You sound skeptical of W2H. He seems to have made some very valid points. Something to consider. Why would he post this info... to get us to buy gold? What benefit would he gain by that?