So Long, US Dollar (Petrodollar article)
- Thread starter guerilla
- Start date
Last time I checked I couldn't buy milk at the local grocery store with a vile of gold dust. I don't think I can make a car payment with my melted down gold jewelry. Until either of these are possible here in the U.S., I'm probably gonna need to use some form of widely accepted currency, and I'll guess that's going to be the dollar.
Yeah, but some fags are trying to artificially increase the inflation to keep up. Because otherwise it screws up tourism etc *FACEPALM*
I am seriously considering to get into politics...
you consider moving into a currency that would tank just a bit less hard than some other
That was a good read.
There's little doubt that the USD is in decline. The world is changing and changing fast. As other countries continue to develop it only makes sense that they would want to have more control over their currency, specifically more control in the global exchanges. Until recently however, the want to do so was outweighed by the benefits of staying beholden to the USD. In my opinion this was for two major reasons. First because the US was the strongest developed economy in the world. Buying US debt made sense on an economic level at the time. You knew you were going to get a return and that all payments would be made. That's a solid and stable investment, it was also easy. The surety that once existed in repayments and the virtually guaranteed return on invest have been lessened since the recession began and took a large chunk of the world economy with it.
Secondly, the rest of the world didn't want to engage in what could be construed as a hostile move, specifically over currency. Everyone knows that the US has an itchy trigger finger. Any indication that a "lesser" country was attempting to change the currency status quo could have been viewed as hostile. That would have led to sancations (that rarely work) and then ultimately some form of military force.
Things have changed lately though. The US, while still the major military power in the world, has lost some of it's "alpha" reputation around the world. The wars in Iraq and Afghanistan took/have taken forever. A decisive outcome is only likely if the US were to outright lose the battle. There is virtually no way it can "win" these types of wars. I have to believe that other countries recognize this. The fact that the US hasn't had a truly decisive large scale military victory since WWII yet has basically been in active conflicts for much of the time since WWII takes a bit of the shine of the US military.
The leaders in much of the world weren't around the last time the US was a true military super power that had the ability to instill the fear of God into the rest of the world. Now it's more like, "if we piss off the US, they'll come and start some shit for awhile. Eventually they'll get tired of playing in the sand/forest/whatever and leave without having accomplished much of anything other than spending a fuck ton of cash and leading thousands of people to their deaths."
All in all, it makes sense for other countries to stop allowing the USD to dominate the global market. Would that hurt the US? Undoubtedly, but in the long run a global currency that is basically a melting pot of currencies from around the world would likely lead to a more stable global economy over time. Since it seems that a truly global market is the way the world is headed, this could ultimately be a good thing.
P.S. - For all you people freaking out about Google's last algo update (and the one before that, and the one before that, and the one before that, etc.,) this article is a great example of what truly GREAT content is. It's aimed at the target audience of the website. It gives them a relatively clearly laid out explanation of the problem, where the author thinks things are heading and does so in a way that makes a very complicated situation understandable for the masses. This is the type of shit that gets people coming back to your site to find what they want. Since guerilla said he's a fan of these guys research, I feel confident is saying that he didn't find this with some random Google search. He found it because he went directly to the website (or it was delivered to his inbox) because he trusts them, likes them, and searches them out when he's looking for this type of information.
Google is only part of the battle. Sure getting your site ranked is awesome and getting that free G traffic is incredibly important to most websites. But getting them there isn't enough, specifically if you're website is a place you want visitors to visit again. Once you're there you have to give them what they want. Engage them. Answer their question, entertain them, or do whatever else it is that a person looking for your content would want and not sound like a dumbass when doing so.
There's little doubt that the USD is in decline. The world is changing and changing fast. As other countries continue to develop it only makes sense that they would want to have more control over their currency, specifically more control in the global exchanges. Until recently however, the want to do so was outweighed by the benefits of staying beholden to the USD. In my opinion this was for two major reasons. First because the US was the strongest developed economy in the world. Buying US debt made sense on an economic level at the time. You knew you were going to get a return and that all payments would be made. That's a solid and stable investment, it was also easy. The surety that once existed in repayments and the virtually guaranteed return on invest have been lessened since the recession began and took a large chunk of the world economy with it.
Secondly, the rest of the world didn't want to engage in what could be construed as a hostile move, specifically over currency. Everyone knows that the US has an itchy trigger finger. Any indication that a "lesser" country was attempting to change the currency status quo could have been viewed as hostile. That would have led to sancations (that rarely work) and then ultimately some form of military force.
Things have changed lately though. The US, while still the major military power in the world, has lost some of it's "alpha" reputation around the world. The wars in Iraq and Afghanistan took/have taken forever. A decisive outcome is only likely if the US were to outright lose the battle. There is virtually no way it can "win" these types of wars. I have to believe that other countries recognize this. The fact that the US hasn't had a truly decisive large scale military victory since WWII yet has basically been in active conflicts for much of the time since WWII takes a bit of the shine of the US military.
The leaders in much of the world weren't around the last time the US was a true military super power that had the ability to instill the fear of God into the rest of the world. Now it's more like, "if we piss off the US, they'll come and start some shit for awhile. Eventually they'll get tired of playing in the sand/forest/whatever and leave without having accomplished much of anything other than spending a fuck ton of cash and leading thousands of people to their deaths."
All in all, it makes sense for other countries to stop allowing the USD to dominate the global market. Would that hurt the US? Undoubtedly, but in the long run a global currency that is basically a melting pot of currencies from around the world would likely lead to a more stable global economy over time. Since it seems that a truly global market is the way the world is headed, this could ultimately be a good thing.
P.S. - For all you people freaking out about Google's last algo update (and the one before that, and the one before that, and the one before that, etc.,) this article is a great example of what truly GREAT content is. It's aimed at the target audience of the website. It gives them a relatively clearly laid out explanation of the problem, where the author thinks things are heading and does so in a way that makes a very complicated situation understandable for the masses. This is the type of shit that gets people coming back to your site to find what they want. Since guerilla said he's a fan of these guys research, I feel confident is saying that he didn't find this with some random Google search. He found it because he went directly to the website (or it was delivered to his inbox) because he trusts them, likes them, and searches them out when he's looking for this type of information.
Google is only part of the battle. Sure getting your site ranked is awesome and getting that free G traffic is incredibly important to most websites. But getting them there isn't enough, specifically if you're website is a place you want visitors to visit again. Once you're there you have to give them what they want. Engage them. Answer their question, entertain them, or do whatever else it is that a person looking for your content would want and not sound like a dumbass when doing so.
NickRac
ก้้้้้้&
It's a defensive move, but I would still make money relative to my own currency.
The other option is to speculate on risky currencies with high swings and I am not interested in doing that as I am only interested in preservation and not high risk speculation.
Stay out of any fiat currency, buy actual assets and not IOU's. Buy companies that actually produce something of real value like clean drinking water, so for example look for a Brazilian utility company that pays a strong dividend. Build up a diverse portfolio that way, invest back into developing your own assets.
You should have a capital system where you're continuously moving money from high risk areas down the your risk pyramid with the most stable assets being at the bottom. The cash flow from the bottom of the pyramid gets pumped back to the top, to fund the high risk speculative stuff like AM. Thus high risk money flows down to lock away and low risk money flows up.
The key to making money and keeping wealth is understanding money/risk management.
You should have a capital system where you're continuously moving money from high risk areas down the your risk pyramid with the most stable assets being at the bottom. The cash flow from the bottom of the pyramid gets pumped back to the top, to fund the high risk speculative stuff like AM. Thus high risk money flows down to lock away and low risk money flows up.
The key to making money and keeping wealth is understanding money/risk management.
Good strategy, but the devil is in the details. You have to use fiat currency to run that strategy so which one(s)? Those Brazilian dividends and the shares in that Brazilian company are all denominated in BRL, so is that the one to hold?
You can buy stock in South American companies on the NYSE, and totally eliminate your currency risk. There's funds out there but most (if not all) cost, and don't produce cash flow, so I tend to stay away from them.
Here's an example of one that pays a good dividend - CPFL Energia S.A. (ADR): NYSE:CPL quotes & news - Google Finance
More like MAXIMIZE your currency risk - you're using dollars, the leader in the race to the bottom.
Speaking of that, did you see the news about that survivalist who holed up in his bunker to escape the police, then ended up shooting himself? Why go through all that trouble if you are going to off yourself when things get scary?
NickRac
ก้้้้้้&
How does buying it in Dollars eliminate the currency risk, the underlying assets are still in the country of origins currency so you are basically buying assets and speculating in two currencies at the same time. The only thing might be a currency hedge, but it still wont eliminate the fundamental currency risk on the value of the company.
Not a good move. In my opinion south american currencies have always been very high risk.
get ready to live off the land. Invest in led; enough to hunt/protect for 20+ years min. People may call ya crazy now, but when shtf - lulz