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mick silver
3rd November 2008, 13:56
The dollar will collapse when demand in the physical gold market overwhelms demand in the COMEX. Either there will be defaults on the delivery of gold for futures contracts, or there will be a government intervention limiting the withdrawal of gold. Either of these events will be a "perception changing event" of enormous proportions. After all, who wants to stay in low interest bearing US treasuries (which are financing all the bailouts) when faced with the collapse the currency? The move out of the dollar could be so violent that it brings down the financial system despite all the bailouts to date.

(if you own COMEX gold, either sell it or request delivery and hope you are one of the lucky ones who gets their gold)

What will the dollar collapse look like?

For starters, there will be a massive exodus out of US assets. Stocks, bonds, treasuries, and anything liquid will be sold so that dollars can be transferred to safer currencies (are there any?) and gold. At the same time, the price of US imports, specifically oil, will skyrocket. With their lifesavings wiped out, I don't know how exactly Americans will deal with 10 or 20 dollar gas, but it won't be prettyhttp://www.marketoracle.co.uk/Article7032.html

mick silver
3rd November 2008, 13:56
http://www.marketoracle.co.uk/Article7032.html

research24
3rd November 2008, 14:54
The dollar will collapse when demand in the physical gold market overwhelms demand in the COMEX.

What on earth does the dollar have to do with gold? The dollar isn't going to collapse. The only thing that will happen to it is an intentional devalution when the gummint reaches the point it can no longer refinance its debt. This was done in 1933 and in 1974 and will be done again, probably in 2010. Its the easy way out instead of monetizing debt, i.e. printing.

MikeJ
3rd November 2008, 16:04
What on earth does the dollar have to do with gold? The dollar isn't going to collapse. The only thing that will happen to it is an intentional devalution when the gummint reaches the point it can no longer refinance its debt. This was done in 1933 and in 1974 and will be done again, probably in 2010. Its the easy way out instead of monetizing debt, i.e. printing.

Gold is the anti-dollar, and is the currency of last resort. Gold will skyrocket when the dollar falls below that critical low 70's level.

chux03
3rd November 2008, 16:14
The fraudsters that own and operate the printing presses, NOT PRINTING?? HA! HA! HA! :) :D Oh, that's a good one!!! The printers NOT PRINTING MONEY??? :D OH STOP...YOU'RE KILLING ME!!! I'd think we'd sooner see the earth stop spinning than these muxsters stop printing funny money. You'll sooner see gold at $2000 and silver at $35 than them stop printing. To say otherwise is to ignore BOTH monetary history and human nature.
That's about the only thing they can do, which begs the question....how is more of the same going to fix what's wrong with our economy, especially when it's authored and engineered by the same criminals that got us into this mess??

skijake
3rd November 2008, 17:00
Off subject alittle. How about those markets a day before the elections? Silver in a 25 cent range for the most part
Gold in a 10 range for the most part
Stock market off 5 points. No last 1/2 hour heroics needed.
What's up with that?:confused:

JesterJay
3rd November 2008, 17:04
EVERYONE is getting ready to go vote for McCain.
They don't want nObama to CRASH the markets to the ground.
Yup, that's it!
JesterJay



Off subject alittle. How about those markets a day before the elections? Silver in a 25 cent range for the most part
Gold in a 10 range for the most part
Stock market off 5 points. No last 1/2 hour heroics needed.
What's up with that?:confused:

skijake
3rd November 2008, 17:43
EVERYONE is getting ready to go vote for McCain.
They don't want nObama to CRASH the markets to the ground.
Yup, that's it!
JesterJay

Sounds like a sitcom on ABC, Cruzin with McCain.
1st episode title , Smooth Sailing.
2nd episode Now, My Friends
3rd episode, Was that Flak?
4th episode, Ah ****!!!;)

thowze
3rd November 2008, 17:56
The US Dollar is definitely on its way to collapse. Currently the rush into Treasuries is supposedly the factor in the greenbacks rise. But when foreign investors begin to truly realize that America hit the critical point of being unable to pay its debts, they will refuse to buy our "junk" and the Fed will have to make a mad effort to print its way out of it. (The US can't pay the current obligation of $448 billion, how can they handle even more?) This will cause the collapse.

An article in Bloomberg citing record borrowing to finance the runaway general deficit. Goldman Sachs analyst Ed McKelvey projects the Treasury's total 2009 borrowing needs at about $2 trillion.

U.S. to Borrow Record This Quarter to Finance Deficit
http://www.bloomberg.com/apps/news?pid=20601087&sid=aLx_ufXAnIqE&refer=home

US Treasury to expand debt arsenal as deficit rises
http://www.reuters.com/article/bondsNews/idUSN0336150620081104

research24
3rd November 2008, 18:28
Selling T-bills is not money creation. The attempt to reflate the bubble has totally failed because the banks can't or wont lend, and that is how money is created. So far the Fed has monetize only about $200 billion. If you want to know how much the fed is creating, watch the treasury purchase numbers. Otherwise, unless the gummint starts mailing checks, there isn't going to be any US generated inflation.

The monetary base (cash) increased 25% in Oct. but where did that money go? It went under the mattresses as frightened people pulled money out of banks.

Then there is the Bank of Japan with its $900 bn. reserve which creates dollars by lending dollars with its $900 bn reserve which they use for fractional reserve lending. That money is primarily lent to hedge funds and it will again go into stock markets and commodities. Therefore, we can expect to see commodities and stock market bubbles arise again. But everything else is deflating, including your paycheck, in case you haven't noticed.

cugir321
3rd November 2008, 18:31
It will crash when it's supposed to.

research24
3rd November 2008, 19:03
This is true . . . . .

mick silver
3rd November 2008, 19:07
when it happens we will be the first to know

research24
3rd November 2008, 19:14
Unless I'm sleeping . . . . or drunk.

goldragon
3rd November 2008, 20:18
when usd index goes to 100.5 -120, it will collapse.

Trvlr45
3rd November 2008, 22:10
EVERYONE is getting ready to go vote for McCain.
They don't want nObama to CRASH the markets to the ground.
Yup, that's it!
JesterJay

I hope you're right, Jester. This entire election was a re-enactment of a PT Barnum circus that only got worse with US getting the WORST either party had to offer.

I voted for Juan Pablo over Chairman MaoBama. MaoBama will at the least station a stormtrooper at the entrance to every coin shop in the country to collect the NEW 99% capitol gains tax on your silver and gold after he forces us into a depression with his assinine taxes on energy and everything else that he can think of.

In the event of a huge economic collapse we'll be lucky if MaoBama doesn't enact EVERY unconstitutional executive order various presidents have signed over the last 30 years including the one recently signed by Bush that allows the president to send congress and the senate packing allowing HIM or HER to be Fhurer in case of ANY national disaster. Including a hurricane.

Give me Juan Pablo over a racist, American hating, terrorist loving moron ANY time. I'll take my chances on the right side rather than the wrong side. At least I'll still be able to by ammunition legally. Not that THAT will help if MaoBama encircles ever state he doesn't like with UN stormtroopers and our OWN military and then cuts off the food supply like Stalin did starving thousands.

research24
4th November 2008, 06:32
This is not a political forum. How about taking that kind of talk elsewhere?