The dollar is rocking right now!

[Tulpen]

Wow!

Euro down 2.9% and Pound down 4.4%

[grapejelly]

Re: The dollar is rocking right now!

it's just incredible...and silver looks like it is kissing the 8s and gold the 6s. Simply amazing.

[Supercilious]

Re: The dollar is rocking right now!

Simply amazing.

Nope. Quite predictable actually. Get a good tinfoil hat and you will have no surprises anymore....

[Tulpen]

it's just incredible...and silver looks like it is kissing the 8s and gold the 6s. Simply amazing.

Gold $686.85
Silver $8.83

and dropping.

[grapejelly]

Re: The dollar is rocking right now!

the Yen is up 6.82% as of right now...

Pound down 6.35%

Euro down 3..54%

What happens after something goes parabolic?

This is really scary.

[YoplaitLight]

Re: The dollar is rocking right now!

Here are my thoughts. I would love some critique from the iTulip community.

1. There is way too much debt out there to be paid. It is literally impossible to pay the debt that exists with the money that exists.

2. Therefore, in order to "pay" that debt, governments that owe money will print money. Alternatively, they could default outright on their sovereign debt, but that seems unlikely as inflation is a much stealthier and more politically palatable process.

3. Therefore, betting on a currency is a fool's game, as it's a race to the bottom for who can devalue the fastest -- swiss francs, backed partially by gold, are arguably a better bet than others, but in the end, all fiat currencies are in a race to the bottom.

4. In the medium term, therefore, things that exist in finite quantities are a better bet than things that can be increased by fiat, in that they will rise relative to whatever can be printed (dollars, euros, pounds, yen, etc.). That is, commodities, like gold, oil (or energy generally), water, land, etc.. There's only a certain amount of them, and that amount can't be increased by government fiat, unlike currencies.

I think it must be true that things that exist in finite quantities will rise in value relative to things that are increasing in supply (i.e., fiat currencies). I guess the question is, when will base money inflation reach the tipping point against credit destruction, such that the overall money supply is increasing?

YL

[Chris]

Re: The dollar is rocking right now!

I think it must be true that things that exist in finite quantities will rise in value relative to things that are increasing in supply (i.e., fiat currencies). I guess the question is, when will base money inflation reach the tipping point against credit destruction, such that the overall money supply is increasing?

Must it? What if there is no demand for those things?

[grapejelly]

Re: The dollar is rocking right now!

Here are my thoughts. I would love some critique from the iTulip community.

1. There is way too much debt out there to be paid. It is literally impossible to pay the debt that exists with the money that exists.

2. Therefore, in order to "pay" that debt, governments that owe money will print money. Alternatively, they could default outright on their sovereign debt, but that seems unlikely as inflation is a much stealthier and more politically palatable process.

3. Therefore, betting on a currency is a fool's game, as it's a race to the bottom for who can devalue the fastest -- swiss francs, backed partially by gold, are arguably a better bet than others, but in the end, all fiat currencies are in a race to the bottom.

4. In the medium term, therefore, things that exist in finite quantities are a better bet than things that can be increased by fiat, in that they will rise relative to whatever can be printed (dollars, euros, pounds, yen, etc.). That is, commodities, like gold, oil (or energy generally), water, land, etc.. There's only a certain amount of them, and that amount can't be increased by government fiat, unlike currencies.

I think it must be true that things that exist in finite quantities will rise in value relative to things that are increasing in supply (i.e., fiat currencies). I guess the question is, when will base money inflation reach the tipping point against credit destruction, such that the overall money supply is increasing?

YL

I agree.

Right now, financial assets are being dumped. Every bank is insolvent. To provide them with the cash for the dumped assets, the central banks are supplying limitless "paper".

At some point, this will be over. Financial assets will be worth very little and there will be so much "currency" around...chasing after something, anything.

We are in the 3rd inning. I think I am going to stock up on canned goods this weekend. There can come a time, any time, when the price of food is very low, and there isn't any to be purchased.

[YoplaitLight]

Re: The dollar is rocking right now!

Must it? What if there is no demand for those things?

No demand for what? Gold, oil (or energy generally), water, or land?

YL

[Chris]

Re: The dollar is rocking right now!

No demand for what? Gold, oil (or energy generally), water, or land?

YL

I was being pedantic and it was a purely theoretic point. There doesn't have be demand for everything that isn't infinite. ;)

[we_are_toast]

Re: The dollar is rocking right now!

Stock futures limit down 550! Looks like there will be a market time-out.

Why aren't people running to gold?! It's suppose to be the ultimate safe haven?

What to do? I'm still holding some PM stocks (before I discovered itulip). Should I dump them all as fast as I can, or do I do a Slim Pickens and ride the bomb down to the bottom?

[grapejelly]

Re: The dollar is rocking right now!

Stock futures limit down 550! Looks like there will be a market time-out.

Why aren't people running to gold?! It's suppose to be the ultimate safe haven?

What to do? I'm still holding some PM stocks (before I discovered itulip). Should I dump them all as fast as I can, or do I do a Slim Pickens and ride the bomb down to the bottom?

go to the grocery store and buy food and water.

[Chris]

Re: The dollar is rocking right now!

grapejelly, can you decode this for us please in summary? What are the implications of yesterday/today's events?

[grapejelly]

Re: The dollar is rocking right now!

grapejelly, can you decode this for us please in summary? What are the implications of yesterday/today's events?

it's not yesterday or today, it's a trend. As EJ said, no more bubbles. The FIRE system is collapsing. The real economy will be greatly harmed. Think martial law, think no food on the shelves, think a bank "holiday".

As Bart has pointed out, there has been nothing but lies about this situation coming out of Washington and parroted by the press. That is the key: they have given us the Big Lie, which shows they are scared shitless and obviously can't do anything about what is going on, even though they have tried.

Their next step is to shut down the markets.

Sorry. I've stocked up but not enough. It's off to the store for me!

[nitroglycol]

Re: The dollar is rocking right now!

Here are my thoughts. I would love some critique from the iTulip community.

1. There is way too much debt out there to be paid. It is literally impossible to pay the debt that exists with the money that exists.

2. Therefore, in order to "pay" that debt, governments that owe money will print money. Alternatively, they could default outright on their sovereign debt, but that seems unlikely as inflation is a much stealthier and more politically palatable process.

3. Therefore, betting on a currency is a fool's game, as it's a race to the bottom for who can devalue the fastest -- swiss francs, backed partially by gold, are arguably a better bet than others, but in the end, all fiat currencies are in a race to the bottom.

4. In the medium term, therefore, things that exist in finite quantities are a better bet than things that can be increased by fiat, in that they will rise relative to whatever can be printed (dollars, euros, pounds, yen, etc.). That is, commodities, like gold, oil (or energy generally), water, land, etc.. There's only a certain amount of them, and that amount can't be increased by government fiat, unlike currencies.

I think it must be true that things that exist in finite quantities will rise in value relative to things that are increasing in supply (i.e., fiat currencies). I guess the question is, when will base money inflation reach the tipping point against credit destruction, such that the overall money supply is increasing?

YL

This is all very well. What it doesn't explain, though, is why the US dollar is rising against other fiat currencies. The US is the worst debtor nation in the world; why should this be bullish for their currency?

I have a guess as to why, though I'd like the input of folks more knowledgeable than I. Consider an analogy -- you have cancer, and a better than even chance of being dead in a year. Does it therefore make sense to bet money on being dead in a year? No, because you won't be around to collect. So you bet on surviving, even if the odds against you, because if you lose the bet it won't matter.

Similarly, to bet on the collapse of the US dollar is to bet on the collapse of the entire international financial system. Of course, something new will arise in its place, but from the point of view of a participant in the system, such a collapse is a huge catastrophe, and winning a bet on it happening won't be much comfort.

Indeed, there's another factor at play as well -- bets for or against the system tend to be self-fulfilling, so it makes even more sense for those who have a vested interest in the system to bet in its favour.

Does this make sense?