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New Martenson Report - So Long, Mr. Dollar (for subscribers)

Thursday, September 18, 2008, 2:34 PM

This report focuses on the recent move by the Treasury to sell $100 billion to "help bolster" the balance sheet of the Fed.  The way I view it, this is almost certainly the beginning of the end of the dollar.

So Long, Mr. Dollar (subscribers only)

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4 Comments

Lemonyellowschwin's picture
Lemonyellowschwin
Status: Platinum Member (Offline)
Joined: Apr 22 2008
Posts: 541
RFC Plan
From Bloomberg today: "Schumer proposed an agency to inject funds into financial companies in exchange for equity stakes and pledges to rewrite mortgages to make them more affordable. His remarks indicate momentum is building for some wider plan after the Fed and Treasury's takeovers of Fannie Mae, Freddie Mac and American International Group Inc. this month." The market is rallying on this. Isn't such a proposal extremely dollar negative / gold positive??
Lemonyellowschwin's picture
Lemonyellowschwin
Status: Platinum Member (Offline)
Joined: Apr 22 2008
Posts: 541
Expound Chris?
Chris, last week you made a statement to the effect that the Fed's single greatest intellectual oversight is its failure to realize that inflation is a function of the supply of money stock in relation to goods, services AND assets. Can you expound? I sense that you make a profound observation but I cannot quite understand how/why and how it relates to the current state of affairs. Thanks in advance.
EndGamePlayer's picture
EndGamePlayer
Status: Platinum Member (Offline)
Joined: Sep 2 2008
Posts: 546
Nails in the coffin
So it begins. We still have a few more nails to go before complete melt down. The poorly structured economy they built (and we are seeing crumble before our eyes) is only the beginning. I wonder how long they think they can keep up the charade of "business as usual" or will it all turn into the hyper-inflation Brazil & Argentina worked through? As for my thoughts on what the final nails for the dollar are: 1. We have food production as a source of sales to other countries. . at least for now. Our manufacturing base is weak. Though the "green sector" seems to be moving products as the general population seems to want anything that reduces future use of energy (and I do mean ANYTHING) those sales are "in-house" and not seeing huge increase in exports. Another "resource" is our "medical" industry and frankly, I don't think other countries are as enamored with western medicine as we are. Our lack of innovation and manufacturing boils down to food and war machines as all we have to offer the world. 2. Oil is traded in US dollars but that will change as larger countries demand more than U.S. and become the world's main gas/oil buyer(s). This could happen in the next few years. Watching the end of oil trading in US dollars will be the onset of the biggest price increases a country has ever seen. 3. China may assist the dollar's position if it sees the US consumers as a valuable asset. Personally, since gold/silver can't feed us & keep us warm in a total meltdown, then I need to "top off" my living with food, shelter and heating sources that are all non-dependent on outside sources. And, learn to live in peace and live simply, so others can simple live.
dcowley's picture
dcowley
Status: Member (Offline)
Joined: Aug 26 2008
Posts: 2
Credit card transactions, how do those play out?
US dollars, precious metals have all been addressed here but how will credit card transaction be handle in the scheme of things? e.g. I've got 3 months worth of cash, I've got precious metals on hand so if it gets real bad, I've canned my vegetables, but where does the credit card come into play. How does that play out? Maybe I am missing the obvious but when will a credit card transaction no longer be accepted? Chris I would certainly appreciate a very simplistic answer that I can wrap my small brain around. At what stage of the game does the credit card fade to obscurity?

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