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alstry (36.54)

Defenders of the Dollar!!!!!

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March 03, 2009 – Comments (12)

I am getting a little tired of hearing the dollar bears whine and cry about a weakening US Dollar.  Few currencies in the world have any where near the assets backing it like the US Dollar.  Farm Land, Oil Rights, Mineral Rights, Natural Resources, Raw Land beyond comprehension, Gold, Silver, Platinum and lots more with an amazing group of individuals supported by hardware defending our dollar against anyone trying to destroy it!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

My friends, there will always be oscillations in the value of currency ......but in the end, there is nothing like the US dollar and the group people standing tall defending against any improper agression.....

 

12 Comments – Post Your Own

#1) On March 03, 2009 at 4:17 PM, shffl (< 20) wrote:

alstry,

thanks for providing a thoughtful insights on the dollar. i do believe that over the long term (not sure how long) the dollar will rise in value again. its just the recent eventst that lead me to believe a that dollars devaluation is a possibility meanwhile.

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#2) On March 03, 2009 at 4:18 PM, jesusfreakinco (29.08) wrote:

Enjoy it while you can...  Time to buy some gold and perhaps other currencies while it is strong.  Our day is coming.  Just a matter of time.

JFC

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#3) On March 03, 2009 at 4:32 PM, BenGriffin71 (28.30) wrote:

I have always suspected that the reason we went to Iraq was to defend the dollar.

Iraq and Iran had both threatened to sell oil for euros  and skip the dollar, which granted them immmediate membership in the Axis of evil. 

Invading Iraq was invisioned as giving us a strong central millitary foothold.  It took control away from Sadam, so that oil woudl still be sold in dollars, it threatened Iran (we hoped into compliance and aways from Euro oil trade), and it was viewed as allowing us to more easily keep Saudi Arabia under the Wahhabi thumb.

Why would we care if oil was sold for euros?  As the defacto world trade currency, trillions in dollar reserves are kept in banks worldwide.

  If the dollar even shared this status with another currency like the euro, banks would have excess dollar reserves that would need to  be put to better use.

  The dollar reserves coming back on the market, would likely drive the worth of the dollar back down to its intrinsic value.... that is, the value of a very durable woven quasipaper material with beautiful designs on both faces..... a little less than the current value of our lowest denomination of coin, the penny.

 

I believe that the previous administration faced with this armagedon like scenario decided it was necessary to do something.  Necessity being the mother of invention, and excessive complexity in a lie being a dead give away that an idiot contructed the lie...We have 'the decider's' solution to our currency problem. And now 8 years later, we can truly say 'Mission Complete'.

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#4) On March 03, 2009 at 4:42 PM, Rehydrogenated (32.36) wrote:

Do you really believe that garbage about dollar reserves? Yeah I'm sure all those banks would love to dump all their worthless dollars that they paid good money for. Just like China. It would totally be to their benefit to crash the American economy and sell their dollars as if they were worthless. Then we could all switch to the majestic euro, which has about a year of life left before it fails...which leaves gold. OMG EVERYONE BUY GOLD BEFORE EVERYONE GOES CRAZY AND DECIDES MONEY ISN'T WORTH ANYTHING.

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#5) On March 03, 2009 at 5:10 PM, tumachar (69.50) wrote:

It would be fair to say that Dollar may loose its status as reserve currency, but expecting Dollar demise overnight is wrong.

The question that needs the answer is what will be the replacement. Surely, not GOLD or precious metals. They are not store of value, those are pure fantacy. It has to be some other currency. So untill there is clarity on strong alternative currency.. dollar is not going anywhere far.

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#6) On March 03, 2009 at 5:15 PM, OtherOracleOfOMA (30.95) wrote:

A decent point, actually. In a severe economic downturn, even precious metals are worthless compared to guns. Who has the biggest, baddest, and greatest quantity of guns on the planet? Well, that's undoubtedly the United States armed forces.

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#7) On March 03, 2009 at 5:39 PM, jstegma (29.54) wrote:

If the US military attacked the destroyers of the dollar, it would cause political instability that would probably hurt the dollar more than just leaving the Capitol Building and White House intact.

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#8) On March 03, 2009 at 5:44 PM, BenGriffin71 (28.30) wrote:

Rehydrogenated:

What part of dollar reserves do you disbelieve?  Is it the existence?  Or is it that banks need to makeuse of their assets?  Or do you really believe that because someone paid a high price for somethign they are less inclined to sell when it is plummeting?

The banks certainly don't want to make it crash, but it is inefficient to hold excess reserves in a currency if that currency is no longer the defacto world trading currency.  Once the idea startts, then the first sellers will have the best return on their dollars.

 I actually don't think it is a threat right now.  i think it was a perceived threat in 2001.

 

I agree with OtherOracle. Which is why i hold SWHC and RGR in my real money portfolio.

And I was aboard the biggest baddest gun of them all.... Ohio Class.

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#9) On March 03, 2009 at 5:51 PM, abitare (64.51) wrote:

Comrades,

"Few currencies in the world have any where near the assets backing it like the Ruble,  Farm Land, Oil Rights, Mineral Rights, Natural Resources, Raw Land beyond comprehension, Gold, Silver, Platinum and lots more with an amazing group of individuals supported by hardware defending our ruble against anyone trying to destroy it!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

Yes, Russia is still a net oil exporter and has far more in natural resources then the US. But the ruble collapsed, 

The US imports 65% of it's oil.

I could go on and on, take a read of my post: Lessons from the Collapse of the USSR. In many ways USSR was better off then the US is. Mainly, Russians were already living with shortages and hardships, the modern American has never seen and is not ready for. 

The dollar unlike the Confederate Currency or the Continental is working NOW. Tommorrow, 2010, 2020- the US has some major pain coming. 

I think the US is on its 3rd or 4th currency. In my lifetime, we will LIKELY get a replacement. Usually, currency collapse and replacement comes after/during a war. The US is in multiple wars, right now.

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#10) On March 03, 2009 at 6:04 PM, abitare (64.51) wrote:

Mas? Ok:

Here are some counter points:

I like Faber, you can start at 6:50 (then go backwards)

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#11) On March 03, 2009 at 6:32 PM, Harold71 (20.49) wrote:

"I am getting a little tired of hearing the dollar bears whine and cry about a weakening US Dollar. "

Dick "Deficits Don't Matter" Cheney would love this logic!  And it actually sounds like it came straight out of his corrupt, dirty, rotten, evil mouth!

"If the US military attacked the destroyers of the dollar, it would cause political instability that would probably hurt the dollar more than just leaving the Capitol Building and White House intact."

jstegma, I think that was too complicated for anyone using Cheney/alstry logic.

"In my lifetime, we will LIKELY get a replacement."

abitare, I estimate that the US Dollar will no longer be with us, in it's current form, in under 36 months.  And it could be much sooner than that.

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#12) On March 03, 2009 at 6:41 PM, alstry (36.54) wrote:

Excellent perspectives by all...its good to see a few CAPs players can still think...on both sides of the table.

The dollar dies if debt and entitlements are not repudiated....if debt is restructured.....if debt is restructured...there will be no place like home.

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