There Are No Support Points Left On The Usdx!

[G-khan]

THERE ARE NO SUPPORT POINTS LEFT ON THE USDX!

Quote

THIS IS AN INTENSELY DANGEROUS SITUATION!

Excerpted from Bill Buckler's The Privateer at www.the-privateer.com (http://www.the-privateer.com/)

The US Dollar Is In NO MAN'S LAND:

The Privateer has stated this before, but it requires re-stating. The spot future close of 77.62 on the
USDX ($US index) on September 28 was the lowest in the history of the index - going back to March
1973. There are NO support points left on the USDX. This is an intensely dangerous situation. Behind
the US Dollar and the USDX stands the savage economic fundamentals of the situation the US is now in.
There is a huge US current account deficit of $US 860 Billion. In fiscal 2007 which ended on September
30, the Treasury officially added $US 501 Billion to its funded debt. The US credit expansion rolled out
an additional $US 3.757 TRILLION (annualised) in the second calendar quarter of 2007.

Blindly Oblivious To Reality:
Each one of these three fundamental US global imbalances will have to be brought back into real balance
with the rest of the world. Any of the three even if standing all by itself has the potential to cause an
unstoppable fall in the international value of the US Dollar. Tragically, the Bernanke Fed has already
signalled that it does not care about the international value of the US Dollar and the US Congress has
itself signalled that it expects to deficit spend, without consequences, for as far ahead as one can see.
The same thing applies geo-strategically. The Bush Administration has no intention to withdraw from
Iraq and it is patrolling the line with Iran looking for any likely casus belli to start a massive US air
assault.

This too has now been validated by votes in the US Congress, where the Congressional Research Service
estimates that as of May 2007, Congress had approved a total of about $US 610 Billion for the US wars in
Iraq and Afghanistan. The new $US 190 Billion request for 2008, if fully approved, would raise that total
to approximately $US 800 Billion. This is both US strategic and financial insanity writ large because it
sets the geopolitical stage for the rest of the world to simply stop lending to the US. The Privateer
expects this to be on the minds of the G-7 Finance Ministers and Central Bankers meeting on October 19.

[torchbearer]

Ok, why is this not headline news across the country?

[RP4ME]

So we unless we are invested correctly we could all be starving tommorow?? I men do they relly think tht once most citizens are aware of this they wont diversify out of dollrs themselves which will cause n overnote crsh.....If they pln on continued spendin in Iraq dont they depend on teh dollr a wee bit to get tht done? Can someome explin to me how much time we hve until their is mass urban chaos and food shortages???:eek:

[Marshall]

I'm going to invest in the Elbonian 'Eye Crud'. I hear it became worth more then a USD shortly after Canadian dollars did.

[jonahtrainer]

Ok, why is this not headline news across the country?

Don't scare the sheep. The entire system is based on confidence.

[G-khan]

I don't think it will just collapse now! They are very good at issuing more paper to cover up problems..

It is October though so I also do not count anything out. October is known for its crashes and if we get a big failure of a bank or hedge fund and the derivatives start unwinding - well all bets are off and it will get ugly fast.

[RP4ME]

I don't think it will just collapse now! They are very good at issuing more paper to cover up problems..

It is October though so I also do not count anything out. October is known for its crashes and if we get a big failure of a bank or hedge fund and the derivatives start unwinding - well all bets are off and it will get ugly fast.

My financial advisor seems to think it will be managed to a slow burn....if poosible...
But its dicey - so what like Vincenet Fox says we just give up our cuurency and soverintyy and accept the new currency??? This sucks but we will be forced into this Amero thing Im thinking - what can we do to stop this??? aside form RP
yy

Does anyone know what this woudl look like? I'm in city - yuck. We want to sell but im not sure we can sell and buy in teh country fast enough for this....I mean how much longer can they keep thsi charde going?

[Marshall]

I guess the 'elbonian eye crud' was too much of a Dilbert reference, or else, it's just not as humerus as I thought :o

[Hook]

I guess the 'elbonian eye crud' was too much of a Dilbert reference, or else, it's just not as humerus as I thought :o

I thought it was funny, but not enough to write a response.
:D

[Hook]

My financial advisor seems to think it will be managed to a slow burn....if poosible...
But its dicey - so what like Vincenet Fox says we just give up our cuurency and soverintyy and accept the new currency??? This sucks but we will be forced into this Amero thing Im thinking - what can we do to stop this??? aside form RP
yy

Does anyone know what this woudl look like? I'm in city - yuck. We want to sell but im not sure we can sell and buy in teh country fast enough for this....I mean how much longer can they keep thsi charde going?

RP4ME, could you please get a better keyboard. It is really hard to read your posts. Not to be picky or anything :-)

[Marshall]

I thought it was funny, but not enough to write a response.
:D

That makes me feel better. If there were no Scott Adams fans on these forums I'd be extremely depressed.

[erowe1]

Ok, why is this not headline news across the country?

Because most investors know better than to give any consideration to the so-called "support points" of mechanical investing. This article is sensationalist hoo hah. I have a hunch that the website behind it ultimately wants to get you to invest in something, and that they'll make a profit when you do. This silly article is just a way of scaring you into that. It's the kind of thing you can find from investment peddlers on a daily basis.

[RP4ME]

RP4ME, could you please get a better keyboard. It is really hard to read your posts. Not to be picky or anything :-)

Sure send me some money

[fluoridatedbrainsoup]

Silver is up .33 today. Silver will easily break 14 by the end of October. As it is said, this is not an increase in the value of silver, but a decrease in the value of fiat paper money.

[Wendi]

The dollar is fake anyway. Probably the best thing that could happen to *us* as in those of us who want to return to a system of real money ... would be for the whole charade to start to crumble.

[RP4ME]

The dollar is fake anyway. Probably the best thing that could happen to *us* as in those of us who want to return to a system of real money ... would be for the whole charade to start to crumble.

yes but we wont....we will get the amero.....it will be held out as our only solution in a time of chaos - it will be hard to get organized in a time like that to solve the money issue in a way that keeps our soveriengty in tact when you have folks who are purposefully debasing our currency with a plan in place to destroy our constitution....if Paul is elected then well we are in capable hands but if something happens before then or if someone else is elected who is complicit in the CFR/SPP NAU agenda!

[ghemminger]

I have been reading about hyperinflation in Germany...it brings about radical regime change...as well as many other unintended consequences...most notably a severe change in morality...

[katao]

A couple quick question for you financial guys out there:

1. What happens to mortgage debt if the dollar collapses? Since the debt is in dollars, will we be able to pay off our mortgages with small amounts of gold?

2. What happens to our national debt?

[RP4ME]

A couple quick question for you financial guys out there:

1. What happens to mortgage debt if the dollar collapses? Since the debt is in dollars, will we be able to pay off our mortgages with small amounts of gold?

2. What happens to our national debt?

I doubt that your debt goes away but you will have a harder time making paymnets and so mny will forclose and teh banks will take back teh properties unless the govt intervenes.....or those who are well positioned will swoop in buy your prperty for song - liek how they wealth becomes more and more centralized in thsi country????

[erowe1]

I doubt that your debt goes away but you will have a harder time making paymnets and so mny will forclose and teh banks will take back teh properties unless the govt intervenes.....or those who are well positioned will swoop in buy your prperty for song - liek how they wealth becomes more and more centralized in thsi country????

No it's just the opposite. With high inflation paying down your debts becomes easier, not harder. But your savings lose their value at the same time that your debts do.

[Spirit of '76]

But... but... but... in the debate Fred said the economy is "rosy"! :confused:

[G-khan]

My financial advisor seems to think it will be managed to a slow burn....if poosible...
But its dicey - so what like Vincenet Fox says we just give up our cuurency and soverintyy and accept the new currency??? This sucks but we will be forced into this Amero thing Im thinking - what can we do to stop this??? aside form RP
yy

Does anyone know what this woudl look like? I'm in city - yuck. We want to sell but im not sure we can sell and buy in teh country fast enough for this....I mean how much longer can they keep thsi charde going?

All paper fiat currencies fail at some point and when I say fail I mean go back to their real worth - and that worth is the cost of the paper. My guess is they will make it collapse at a time they think is right and yes maybe announce the Amero.

The thing to remember is they will be scaring the hell out of everybody so we will accept whatever they offer. If all this does happen it could get more ugly and bad than most can imagine. If you owned Gold/Silver they would not have the control they now have? They stole our stable money and gave us debt money IOU's in its place..

[RP4ME]

All paper fiat currencies fail at some point and when I say fail I mean go back to their real worth - and that worth is the cost of the paper. My guess is they will make it collapse at a time they think is right and yes maybe announce the Amero.

The thing to remember is they will be scaring the hell out of everybody so we will accept whatever they offer. If all this does happen it could get more ugly and bad than most can imagine. If you owned Gold/Silver they would not have the control they now have? They stole our stable money and gave us debt money IOU's in its place..

Eaxctly but she feels its likley to occure in teh next 6 mo sto 1 year...shes unsure but feels its about as long sthey can keep the charde going...who knows....

Yes I think it will go down when they want it to.....nd teh shepp wont know what hit them - perhaps on ereason we have all these concentraion camps built out, staffed and with noone in them.....what do you do with such chaos?

But I wonder hwat do these folks like Cramer or Suzie Ormond think about all thsi - surely they see it? Is its just bout them making money....i think Ormond hs heart atleast...mybe she doesnt see it - CNBC acts like they dont see it - like its just a cycle - but so does my unles who is a CFP s well.....is its just denial or something more sinister?

[freedominnumbers]

Indeed. If you have large sums in US dollar cash or US backed securities including savings accounts, 401ks or CDs you should be (should have already actually) moving them into foreign assets or precious materials.

What will happen is that you will make the normal return on the investment plus a deflation bonus.

Move your 401Ks into ETFs/funds that invest in large corporations overseas in developing nations. These are the markets who benefit most from "free" trade and return handsome rewards.

If you are a CD type of person then hold CDs denominated in a foreign currency. Not only will you get the nominal cd rate but you'll get a huge deflation bonus which will translate into extra US$ when you convert back.

Some yields from Everbank with a 6 month CD valued at $10,000 starting in January:

Euro: January $US 10,000 = $EU 7,693.34
Base Rate (2.63%) = $EU 101.50 Interest = $EU 7,794.84 6 month total
6 month deflation rate = 3.24%
June $EU 7,794.84 = $US 10,460.92 = 9.56% Annualized return

GBP: January $US 10,000 = $GBP 5,105.78
Base Rate (4.25%) = $GBP 109.07 Interest = $GBP 5,214.85 6 month total
6 month deflation rate = 1.43%
June $GBP 5,214.85 = $US 10,360.12 = 7.43% Annualized Return

Australian: January $US 10,000 = $AUS 12,775
Base Rate (4.88%) = $AUS 313.61 Interest = $AUS 13,088.61 6 month total
6 month deflation rate = 7.60%
June $AUS 13,088.61 = $US 11,024.77 = 21.87% annualized return

New Zealand: January $US 10,000 = $NZ 14,389.50
Base Rate (6.63%) = $NZ 480.96 Interest = $NZ 14,870.46 6 month total
6 month deflation rate = 8.92%
June $NZ 14,870.46 = $US 11,256.46 = 27.12% annualized return


For perspective this is available to US citizens through Al Warka bank in Iraq.
Iraqi Dinar: January $US 10,000 = $IQD 16,950,000
Base Rate (14%) = $IQD 1,220,400 Interest = $IQD 18,170,400 6 month total
6 month deflation rate = 15.85%
June $IQD 18,170,400 = $US 12,419.95 = 55.18% annualized return

[RP4ME]

Indeed. If you have large sums in US dollar cash or US backed securities including savings accounts, 401ks or CDs you should be (should have already actually) moving them into foreign assets or precious materials.

What will happen is that you will make the normal return on the investment plus a deflation bonus.

Move your 401Ks into ETFs/funds that invest in large corporations overseas in developing nations. These are the markets who benefit most from "free" trade and return handsome rewards.

If you are a CD type of person then hold CDs denominated in a foreign currency. Not only will you get the nominal cd rate but you'll get a huge deflation bonus which will translate into extra US$ when you convert back.

Some yields from Everbank with a 6 month CD valued at $10,000 starting in January:

Euro: January $US 10,000 = $EU 7,693.34
Base Rate (2.63%) = $EU 101.50 Interest = $EU 7,794.84 6 month total
6 month deflation rate = 3.24%
June $EU 7,794.84 = $US 10,460.92 = 9.56% Annualized return

GBP: January $US 10,000 = $GBP 5,105.78
Base Rate (4.25%) = $GBP 109.07 Interest = $GBP 5,214.85 6 month total
6 month deflation rate = 1.43%
June $GBP 5,214.85 = $US 10,360.12 = 7.43% Annualized Return

Australian: January $US 10,000 = $AUS 12,775
Base Rate (4.88%) = $AUS 313.61 Interest = $AUS 13,088.61 6 month total
6 month deflation rate = 7.60%
June $AUS 13,088.61 = $US 11,024.77 = 21.87% annualized return

New Zealand: January $US 10,000 = $NZ 14,389.50
Base Rate (6.63%) = $NZ 480.96 Interest = $NZ 14,870.46 6 month total
6 month deflation rate = 8.92%
June $NZ 14,870.46 = $US 11,256.46 = 27.12% annualized return


For perspective this is available to US citizens through Al Warka bank in Iraq.
Iraqi Dinar: January $US 10,000 = $IQD 16,950,000
Base Rate (14%) = $IQD 1,220,400 Interest = $IQD 18,170,400 6 month total
6 month deflation rate = 15.85%
June $IQD 18,170,400 = $US 12,419.95 = 55.18% annualized return

Love the return on the Dinar - when I lived in ecuador the rates were in the 20's but i was too chicken to put my money in there.....I could have made a bunch howver a few montsh later they did have bank runs and many people lost everything......The dinar ahhhh...I guess if I had money to play with or it was FDIC insured some how.....Do you have a Dinar CD? Thanks for the info...yes we have been moving to precious metals, gold money and soon, gold coins and Euro pacific investmnets not depedent on US economy but when it comes down to it what really is not dependent on us.....

What are teh chances that the tptb will ban owning gold/metals when tshtf.....anythoughts

[jonahtrainer]

Love the return on the Dinar - when I lived in ecuador the rates were in the 20's but i was too chicken to put my money in there.....I could have made a bunch howver a few montsh later they did have bank runs and many people lost everything......The dinar ahhhh...I guess if I had money to play with or it was FDIC insured some how.....Do you have a Dinar CD? Thanks for the info...yes we have been moving to precious metals, gold money and soon, gold coins and Euro pacific investmnets not depedent on US economy but when it comes down to it what really is not dependent on us.....

What are teh chances that the tptb will ban owning gold/metals when tshtf.....anythoughts

I highly doubt there will be a gold banning (see several essays at Zealllc.com). If you want safety see GoldMoney.com; the perfect portal between fiat and real money. Zeal has an article titled Gold and the Information Age ... Great read.

I am a dollar bear. I just got tens of thousand more Australian dollars this week on top of all my GoldMoney and Canadian dollars (via Interactivebrokers.com). However, I highly doubt there will be a massive crash. It will lose reserve status and the standard of living of Americans will be greatly lowered (Chinese can take home gold from their banks). There is just too much capital tied up in US$ assets. We are talking $2,200 Trillion. If sold where would it go? Yes, we got problems and are scaring off capital, both human and economic, at faster rates but there are worse places for capital.

[OptionsTrader]

A couple quick question for you financial guys out there:

1. What happens to mortgage debt if the dollar collapses? Since the debt is in dollars, will we be able to pay off our mortgages with small amounts of gold?

2. What happens to our national debt?

It is a complex series of events. For a very good analysis of the events and how the dollar, the price of commodities and services will be effected and how hyperinflation works, buy Financial Armegeddon (http://www.financialarmageddon.com/) by Michael Panzner.

The short answer:

If you have a significant amount of money in savings bonds and/or cash, buy gold. Buy lots of gold. Only gold is money and if you do not own any gold, you do not have any money.

Peruse this site:
www.goldmoney.com