Is my Millionaire Forex Trading Friend Right About the Dollar?

[ArchPaul]

Originally Posted by Deborah K

Who's they? The treasury?

yep. Schiff had talked about it before.. I can't recall the radio episode though..

[Deborah K]

Originally Posted by ArchPaul

yep. Schiff had talked about it before.. I can't recall the radio episode though..

Wouldn't buying I-Bonds be like forcing the Fed's hand?

[LibForestPaul]

Originally Posted by Deborah K

Wouldn't buying I-Bonds be like forcing the Fed's hand?

1. who decides what the inflation rate is ? (kinda like the official unemployment rate)
2. they would simply borrow more money, which the Fed would print, and the taxpayer pays the interest on (not principal, since it can never be repaid)

[akforme]

Originally Posted by Sentinelrv

I have a millionaire friend that trades Forex and I recently asked him what he was doing to protect his fortune from the coming hyperinflation. I showed him some videos of Peter Schiff explaining the devaluation of the dollar and the Peter Schiff was right video to show him he's not talking out of his ass, but here is my friends reply...



What do you think about his answer? I don't want to see him lose his fortune, so should I push him a little harder, or do you think there's any truth in his response?

At some point China, Japan, blah blah blah are going to cut their losses. They won't go bankrupt, but it would be a short term hit. However, they produce and have savings so in the long run they'll turn around and be way better off. All of them are diversifying away from the dollar. The thing is it will happen overnight because somebody will panic and move too much at one time.

BTW, Tiger is a multi-millionaire and he didn't see a fire hydrant coming so being rich sometimes means they have blinders on. (or a wife chasing with a 4 iron) How old is he too? Older generations have a harder time seeing it because they have a lot longer trust built up.

[ArchPaul]

Originally Posted by LibForestPaul

1. who decides what the inflation rate is ? (kinda like the official unemployment rate)
2. they would simply borrow more money, which the Fed would print, and the taxpayer pays the interest on (not principal, since it can never be repaid)

exactly. I believe TIPS interest is based on CPI. So in reality, the govt. is short changing you.. because .gov will say inflation (cpi) is 3% but we're all paying 30% more for milk, meat, fuel...

[Zippyjuan]

Originally Posted by tmosley

Put money in CD's.

HA! Yeah, I'll do that.

They always have said that if CD's get to ten percent, lock in as long a term on that as you can.

[ILUVRP]

Originally Posted by LDA

How could one make a profit from the coming high interest rates?

If it were me and i thought that interest rates were going to go up.

I would buy TBT ($ 47/SHARE ), TBT goes up if interest rates go up.

JMHO

[eric_cartman]

i think your friend is wrong. there is an argument to be made for a stronger US dollar... but this is not that argument. if he was a deflationist like Robert Precher or David Tice, than he might have a point... but i think he's just plain wrong based on his reply