Comments on: Danger for the Dollar http://dailyreckoning.com/danger-for-the-dollar/ Economic News, Markets Commentary, Gold, Oil and Investing Strategies. Sat, 26 May 2012 08:56:41 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: No More Nonsense. http://dailyreckoning.com/danger-for-the-dollar/#comment-20492 No More Nonsense. Mon, 24 Aug 2009 20:00:51 +0000 http://dailyreckoning.com/?p=17937#comment-20492 “Last fall, our financial system stood on the brink of a collapse that threatened a depression. The crisis required our government to display wisdom, courage and decisiveness. Fortunately, the Federal Reserve and key economic officials in both the Bush and Obama administrations responded more than ably to the need." Warren Buffett. Hey, someone should wise up Buffett. There is nothing courageous about these spineless governments always taking the soft-option! As if that weren't enough, he is advertising to the world that he is delusional when he puts the word wisdom and government in the same sentence. “Last fall, our financial system stood on the brink of a collapse that threatened a depression. The crisis required our government to display wisdom, courage and decisiveness. Fortunately, the Federal Reserve and key economic officials in both the Bush and Obama administrations responded more than ably to the need.”

Warren Buffett.

Hey, someone should wise up Buffett. There is nothing courageous about these spineless governments always taking the soft-option!

As if that weren’t enough, he is advertising to the world that he is delusional when he puts the word wisdom and government in the same sentence.

]]> By: Osama Bin Greenspan http://dailyreckoning.com/danger-for-the-dollar/#comment-19874 Osama Bin Greenspan Fri, 21 Aug 2009 16:44:03 +0000 http://dailyreckoning.com/?p=17937#comment-19874 Hahahahahaha, you dumb Americans. You infidels and your lavish lifestyles bought this upon yourselves. Hedonism and wars that you couldn't afford to fight. Now that we have our al'Queda inside men controlling your economy - both the Fed and Treasury - expect your future and your children's future to be one of doom and grinding poverty, god willing. Hahahahahaha, you dumb Americans. You infidels and your lavish lifestyles bought this upon yourselves. Hedonism and wars that you couldn’t afford to fight. Now that we have our al’Queda inside men controlling your economy – both the Fed and Treasury – expect your future and your children’s future to be one of doom and grinding poverty, god willing.

]]> By: Richard Krueger http://dailyreckoning.com/danger-for-the-dollar/#comment-19867 Richard Krueger Fri, 21 Aug 2009 16:09:02 +0000 http://dailyreckoning.com/?p=17937#comment-19867 I am not an economist by training, but I did take the mandatory Econ 101 back in college. As I understand it, there is the money that is in circulation say M2 and then there is all this debt out there - government, business, real-estate, and consumer credit card debt. A lot of the debt is failing, specifically mortgages and credit cards. So financial value (or money) is vanishing out of the system. Meanwhile the government is borrowing what it can from the Social Security trust fund and the Chinese and making up the shortfall by printing more money. Yet inflation is nowhere to be seen. Why is this? Simply because bad debt is causing value to disappear faster than can be offset by printing money. The end result is that people are getting poorer, because the instruments underlying the debt are losing value (houses, cars, educations), but the value of money seems to be increasing. This is very counter-intuitive but I think it explains what is going on. I am not an economist by training, but I did take the mandatory Econ 101 back in college. As I understand it, there is the money that is in circulation say M2 and then there is all this debt out there – government, business, real-estate, and consumer credit card debt. A lot of the debt is failing, specifically mortgages and credit cards. So financial value (or money) is vanishing out of the system. Meanwhile the government is borrowing what it can from the Social Security trust fund and the Chinese and making up the shortfall by printing more money. Yet inflation is nowhere to be seen. Why is this? Simply because bad debt is causing value to disappear faster than can be offset by printing money. The end result is that people are getting poorer, because the instruments underlying the debt are losing value (houses, cars, educations), but the value of money seems to be increasing. This is very counter-intuitive but I think it explains what is going on.

]]> By: Werner http://dailyreckoning.com/danger-for-the-dollar/#comment-19784 Werner Fri, 21 Aug 2009 06:01:50 +0000 http://dailyreckoning.com/?p=17937#comment-19784 I fully agree with Bill Bonner's staying away from the Dollar. There is a huge propaganda machine (Dow Jones news, for instance) talking the "safe-haven" dollar up. The dollar is not a safe haven, its a sure proposal to loose your shirt over the medium-term. Sitting in Switzerland and trading it since 1968, at 4.30 agst CHF to start with, and 1.06 and odd now, I know what I am talking about. And the race to the bottom for all fiat currencies is not finished yet. I just hope my currency will be the slowest one in this race. I fully agree with Bill Bonner’s staying away from the Dollar. There is a huge propaganda machine (Dow Jones news, for instance) talking the “safe-haven” dollar up. The dollar is not a safe haven, its a sure proposal to loose your shirt over the medium-term. Sitting in Switzerland and trading it since 1968, at 4.30 agst CHF to start with, and 1.06 and odd now, I know what I am talking about. And the race to the bottom for all fiat currencies is not finished yet. I just hope my currency will be the slowest one in this race.

]]> By: Dennis (EU) http://dailyreckoning.com/danger-for-the-dollar/#comment-19782 Dennis (EU) Fri, 21 Aug 2009 05:54:44 +0000 http://dailyreckoning.com/?p=17937#comment-19782 We're running towards the least wished scenario: deflation and high interest rates - impossible? Wait and see... Problem is: which bank or what treasury will survive to pay you for your savings in the future (after 2011)? My advice: find some land to grow your own food, organize with people you trust and buy good weapons and bullet-proof jackets. We’re running towards the least wished scenario: deflation and high interest rates – impossible? Wait and see…
Problem is: which bank or what treasury will survive to pay you for your savings in the future (after 2011)?
My advice: find some land to grow your own food, organize with people you trust and buy good weapons and bullet-proof jackets.

]]> By: Lost & Found http://dailyreckoning.com/danger-for-the-dollar/#comment-19774 Lost & Found Fri, 21 Aug 2009 05:07:11 +0000 http://dailyreckoning.com/?p=17937#comment-19774 @ Kurt You know in the end it boils down to corporate responsibility or, as is, corporate irresponsibility. When humans are seen as human capital only and are treated accordingly, it is by no means wondering when human capital isn't as fast as monetary capital and thus looses the race. @ Kurt

You know in the end it boils down to corporate responsibility or, as is, corporate irresponsibility. When humans are seen as human capital only and are treated accordingly, it is by no means wondering when human capital isn’t as fast as monetary capital and thus looses the race.

]]> By: Lost & Found http://dailyreckoning.com/danger-for-the-dollar/#comment-19773 Lost & Found Fri, 21 Aug 2009 04:57:52 +0000 http://dailyreckoning.com/?p=17937#comment-19773 "Second, the feds are not really interested in the health of the real economy anyway. This is an insight, which while it may seem obvious, it only came to us recently." That insight that seemed to have flown to you from outer space..., nonetheless, did'nt help you to make a new point. How come? “Second, the feds are not really interested in the health of the real economy anyway. This is an insight, which while it may seem obvious, it only came to us recently.”
That insight that seemed to have flown to you from outer space…, nonetheless, did’nt help you to make a new point. How come?

]]> By: The Real Deal http://dailyreckoning.com/danger-for-the-dollar/#comment-19771 The Real Deal Fri, 21 Aug 2009 04:28:06 +0000 http://dailyreckoning.com/?p=17937#comment-19771 Harry - BB has been around a long time, seen an awful lot. BB has been right about the US economy for years. Calling him 'silly' without exposing your credentials only tells me you're the silly one. "Buffet is an optimistic fellow. He believes that responsible authorities will turn off their dollar-printing machines in order to protect the greenback." Well, if that is what WB really thinks, he wouldn't have written that piece on how he worries about the dollar right? Anyway I won't listen to the 'Oracle' too much. He is only an investor and he talks with forked tongue whenever that will serve his investment interests. Harry – BB has been around a long time, seen an awful lot. BB has been right about the US economy for years. Calling him ‘silly’ without exposing your credentials only tells me you’re the silly one.

“Buffet is an optimistic fellow. He believes that responsible authorities will turn off their dollar-printing machines in order to protect the greenback.”

Well, if that is what WB really thinks, he wouldn’t have written that piece on how he worries about the dollar right? Anyway I won’t listen to the ‘Oracle’ too much. He is only an investor and he talks with forked tongue whenever that will serve his investment interests.

]]> By: Kurt http://dailyreckoning.com/danger-for-the-dollar/#comment-19770 Kurt Fri, 21 Aug 2009 04:12:36 +0000 http://dailyreckoning.com/?p=17937#comment-19770 The seeds for this Great Depression were planted long time ago when corporations such as GE betrayed the American worker by opening up factories abroad. The short-term corporate greed followed the Keynesian dictum that ”in the long run we shall all be dead”. While the CEOs responsible will surely be all dead, the next generations will pay the price. The Fed cannot correct major structural problems in the economy by monetary policy. However, those are the only tools available to them. They may only delay the inevitable, but make things much worse to deal with later. Thanks to Greenspan’s monetary policies, we now face the worse Depression while Bernanke fights the wrong one -the one that he apparently studied well in school. The seeds for this Great Depression were planted long time ago when corporations such as GE betrayed the American worker by opening up factories abroad. The short-term corporate greed followed the Keynesian dictum that ”in the long run we shall all be dead”. While the CEOs responsible will surely be all dead, the next generations will pay the price.
The Fed cannot correct major structural problems in the economy by monetary policy. However, those are the only tools available to them. They may only delay the inevitable, but make things much worse to deal with later. Thanks to Greenspan’s monetary policies, we now face the worse Depression while Bernanke fights the wrong one -the one that he apparently studied well in school.

]]> By: Mitch Gurney http://dailyreckoning.com/danger-for-the-dollar/#comment-19767 Mitch Gurney Fri, 21 Aug 2009 03:57:59 +0000 http://dailyreckoning.com/?p=17937#comment-19767 I have three comments, first for Harry: You frequently state economic indicators point to a recovery, but never provide data to support your claims. Why not? Second, in regards to Warren Buffet: Is it me or is he talking out of both sides of his mouth or perhaps wallet? First he commends the "government [for displaying] wisdom, courage and decisiveness" as they spend - borrow - trillions saving corporate America that has as he says put the US on a slow recovery but then raises alarm to the vast debt the government is racking up. What am I missing here? And third, cash for clunkers; giving cash to the consumer to buy a new car and take on a new debt in the process. So this new car buyer is triple slammed; 1)incurs increased personal debt; 2) incurs an eventual increase in tax liabilities with the gov who will have to someday pay back what it borrowed to fund the clunkers program; and 3)all this with interest...so who's the real clunker in the deal? I have three comments, first for Harry:
You frequently state economic indicators point to a recovery, but never provide data to support your claims. Why not? Second, in regards to Warren Buffet: Is it me or is he talking out of both sides of his mouth or perhaps wallet? First he commends the “government [for displaying] wisdom, courage and decisiveness” as they spend – borrow – trillions saving corporate America that has as he says put the US on a slow recovery but then raises alarm to the vast debt the government is racking up. What am I missing here?
And third, cash for clunkers; giving cash to the consumer to buy a new car and take on a new debt in the process. So this new car buyer is triple slammed; 1)incurs increased personal debt; 2) incurs an eventual increase in tax liabilities with the gov who will have to someday pay back what it borrowed to fund the clunkers program; and 3)all this with interest…so who’s the real clunker in the deal?

]]>