600 billions Dollars... From where ???

Hi All..

I'm from New Zealand, and we just heard in the media 72 hours ago, that the US was planning on printing 600 Billion dollars to help ease the financial crisis. The media said it is the last bullet in the barrell... If this doesn't work, then nothing will.

Our Kiwi Dollar is quickly catching up on the US dollar now, about 80 cents to 1 NZ Dollar.... Our government is talking about pegging our dollar to the Gold Standard due to the US currency fluctuations...

What are your thoughts in the US about the possible outcomes of this "new money" entering your economy ?

Your replies will be appreciated.

reply to post by hmistry


In an intro thread all I will say is welcome.

I say let whatever is gonna happen, happen.

We'll adapt.
It's all just part of the effort to dig ourselves out.

I heard the Robert Zoellick, the president of the world bank, was promoting the idea of switching from "Bretton wood 2" to the gold standard again. What influence that would have on the united states, I am not quite so sure.

As an intro thread, I would normally be a little more informative about who I am. Being a member since 2006, and RSS'ing all my ATS news thus far I've seldomly posted and regularly watched.
I realise that most of you are relatively smart, and discounted the niceties of the formal intro.

Hello to all of you people who read these posts... It's been a great time looking "into" this site from the outside for so long, and a very learing experience.

Some of my brownie points....
I'm a Kiwi born Male New Zealander, I've had three UFO encounters in my 30 odd years, one with Police attendance. I'm married with 2 kids, work as an IT/Industrial Engineer. the best thing is that I not only live in Lonely Planets, top City in the world 2010, WELLINGTON... It's also one of the most volcanically, and earthquake active zones in the world. (So I keep an eye on you posters....)

Take care all, and again thanks for keeping me informed and entertained....

First things first welcome.

Next thing to say on the list, is I'm wondering where this money is coming from as well. I haven't heard or read anything lately so I do wonder where it will come from.

reply to post by hmistry


the money comes from thin air. what will happen will be inflation, loss of confidence in the dollar, and probably a dip in unemployment.

if the loss of confidence is strong enough to cause things like your government pegging their currency to gold, etc, i'd say we're in for some unbelievably awful times.

we've already tried two nearly 800 billion dollar bailout/stimuli, plus a massive 900? billion dollar healthcare fiasco. what makes them think this 600 billion will work is beyond me.

my guess is that obama is engaging in a special kind of job 'saving or creating' whereas he hunkers down and does whatever it takes, no matter how disastrous to save the only job that matters....his own.

welcom to ats.

yep thin air.. well actually IOUs.. the treasury says "hey were worth it" the fed print us money and buys bonds.. more IOUs.. it's the basis of all fiat currencies .. everyones.. even yours..

is it messed up.. stupid.. etc.. yep.. it is ad its been going on for decades, in almost every country on the planet..

the issue here isn't the fact its happening , its the fact that they are not ll doing the same and they are making each other look bad..

previous to now we they were all devaluing currencies at the same rate.. so we were all sinking at about the same rate.. now some countries are deflating others like the USA are inflating etc.. making the differences all over the place.

every fiat currency is based purely o the faith in it's value, the US dollar is the world reserve so it has some added faith in it because nearly every country in the world has some dollars.. however.. once that faith is lost its a very quick fall from top to bottom .. look at Zimbabwe for guidance.. took them a year to inflate the currency to oblivion. As stated before the USA has a bit of faith to throw around.. but once the dominoes start falling it will be over night and the dollar will be dropped as the worlds reserve and al these dollars will come back to the USA.. the entire world money supply back onto our local economy .. virtually overnight.. and inflation will go from manageable to hyperinflation overnight...

Now.. how to protect your self? buy precious metals and or other commodities.. and own them .. don't own a contract on them.. they will simply pay you in worthless paper.. when you demand the goods.. at least most have this in the contract.

Silvers up 60+% YTD and 20+% month to date.. gold up 30% YTD, many other commodities like sugar and cotton etc. are doingt he same large gains.. remember its not them gaining its the dollar dropping in value. It always take the same effort and resources to mine a ounce of gold or silver from the ground and refine it into a bar or rounnd.

I know currency comes from exactly where you mention. Zeitgeist clearly points this out with a few flaws..

However, it does seem the US ecomony, is becoming more and more disjointed from the rest of the economic world due to the people that drove it to the point it's at now.

New Zealand trades fine with all our partners, it just looks like the US, is becoming more and more enclosed within itself, not realising that the rest of the world would help it out, just like the US did when we asked for it.
As mch as I hate to say it, your stuff costs heaps here, but far out the quality is fantastic. (I'd put it up there with German products...)

Salient point ?

You mine between the buttocks of men.

reply to post by Marulo


here's the link about the world bank considering going to a gold standard...

ffog.net...

he says it would take some time to accomplish....

apmex gives this as the reason that gold and silver ran yesterday.....

reply to post by snusfanatic


Printing money has worked to recover economies before.

Think of it like this:

All of America's exports have now become cheaper to buy, this in theory should encourage more buyers into the market.

More buyers means more real revenue coming back into the economy.

If done right it will mean the US dollar will make a huge recovery.

I'm considering buying a heap of American dollars because right now 1 US dollar is buying 1 AUS dollar.

Wait for the recovery and then re-exchange the money, my $1 is now worth $1.50

reply to post by Chadwickus


I dont think that is a good idea.

What if there is no recovery?

Have you watched any glenn beck recently?

reply to post by rajaten


It's no different than working with shares.

Buy low.

Sell high.

And with shares, there is always a risk.

The printing of money may not work...It didn't in Zimbabwe, they had inflation rates as high as 11,200,000% a few years ago.

reply to post by snusfanatic


Lets see... the USA feds can print billions out of thin air...

and if "we the people" add fake money to our bank account or try to spend "pretend dollars" that is counterfit... WE can go to P-R-I-S-O-N for doing what FEDS get rewarded millions for doing????? Then FEDS are the criminals... why no "perp walks?" why no arrests?

This whole system is fake....I wish someone in power would do SOMETHING!

reply to post by Chadwickus


Good move, unless you think there is something unprecedented coming on the horizon of humanity (me )

Then its an epic fail.

If I had lotsa money, i'd just order a bucketload of cool stuff from america with your strong aussie dollar. At least then you have something to hold for your efforts.

reply to post by Chadwickus

"if they do it right"....
is the key phrase......
you are putting alot more faith in the clowns running the show here in the states than many americans have in them.
heck those clowns are spending millions of dollars for stupid stuff....the latest I read was studying burping cows...while well....parents in one state are being encouraged to drop their handicapped kids off at shelters....
the cows, it seems, are more important than the kids...at least to the clowns...

the only faith I have in them is that they will continue to screw up!

as long as their priorities are so screwy, well, I don't think the country will be going too far.

reply to post by dawnstar


Oh I agree, it's high risk, hence the high return if successful.

Fact is, USA needs to crash, I just don't think it's possible just yet.

From where does this money come, you ask?

Ben Bernanke pulls his head out of his backside. Then he pulls out the cash, gives it to wall street and finally reinserts his head.

At least that's my take on it.