The Golden Truth: A Warning On The Dollar From il Padrino...

Tuesday, January 25, 2011

A Warning On The Dollar From il Padrino...

"If the dollar collapses, every investment you own will be adversely affected -- your home, your stocks, your insurance policies, your bonds, your 401K -- everything that is denominated in dollars." LINK

I've been watching the dollar all day today (well, I do everyday) and so far it has bounced 3 times at the 78 level since this afternoon. This could get ugly for anyone who does not have a significant portion of their wealth in precious metals...

6 comments:

SatyaPranavaTuesday, 25 January, 2011
hey dave, just an off-topic question: how safe do you feel in denver/CO more generally riding out this storm? why?

as i used to live in denver over a decade ago, i can't imagine the changes since then, but it seems like it's just as overbuilt as everywhere else (save Nevada).

I'm curious to know your thoughts since you're there (and I used to live at quebec and iliff).

satya
ReplyDelete
Replies
Dave in DenverTuesday, 25 January, 2011
In terms of civil unrest I think Denver is not going to get too ugly. But nowhere in this country will be safe from the tentacles of what will become a totalitarian Government. I tell people that I can explain to them how to get to the "other side" of what's coming with their wealth relatively intact. But do you really want to see that the "other side" looks like?
ReplyDelete
Replies
BillWednesday, 26 January, 2011
HOLY S*IT!!!!!!!!!!!!!!!!

http://www.bloomberg.com/apps/quote?ticker=BDIY:IND
ReplyDelete
Replies
Dave in DenverWednesday, 26 January, 2011
Bill, I think the BDI is worth following, but the question is, does the index level move based on whether or not new ship capacity comes online or demand changes? Capacity is "lumpy" and if a lot of cargo ships were orded two years ago, we could be seeing extra marginal capacity vs. a change in demand. I don't know the answer to this. I think it's possible there is a slowdown in demand for commodities in China but who the heck really knows.

All this is to say that I think the BDI is worth tracking to use in conjunction with other data out there, but not necessarily a good leading indicator in and of itself.
ReplyDelete
Replies
BillWednesday, 26 January, 2011
Italian authorities have confiscated $20 billion in counterfeit U.S. government bonds.

http://finance.yahoo.com/news/Italy-confiscates-euro20-apf-1927243563.html?x=0

Ha ha ha ha

Bill
ReplyDelete
Replies
SatyaPranavaWednesday, 26 January, 2011
hey bill...look at the BDI from the bright side of things...it's up over 100% from the 2008 lows :)
ReplyDelete
Replies

Add comment

Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.