It's better than phony government statistics reminiscent of the USSR, for starters.
Rolling this answer into the response of "datbigfitz", there are good points there, but the country is in a downwards spiral when one sector, the financial, grabs all the wealth, destroying the middle class in the process. It is the middle class, through the freedom implied in its "pursuit of happiness" that has made the country the greatest on Earth. Those who ignore that factor miss how close the elitist faction is to getting their wish to see the country become a land of serfs.
Sorry Golbugger, it just isnt so. Yes we export inflation and yes the dollar is asymmetrically related to other currencies, but there will be no "PetroYuan or PetroRuble anytime soon.
Tell me something good about the accessibility of China's bond market compared to the U.S. ? Yup, silence. FYI only about 10% of Chinese hold savings in bonds...it's all in the banks. They may never get to where we are this decade. How about currency controls, non-transparency, and pricing inefficiency. And a fixed interest rate policy ? Forget a viable bond market until they fix all that.
As for Russia, look at what the mere drop in oil price has done. They are not developed and diversified enough to withstand it. They are selling foreign reserves to prop up the ruble. They may sell gold. Yes, they are trading with the Chinese and "bypassing" the dollar but that's just to stay afloat. One might think that the U.S. and Saudis PLANNED this oil thingy to hurt poor Vlad over Ukraine. Hmmm.
Look, the USA took over world financial leadership after WWII. Freedom, democracy, and multilateralism keep us here. Look at these other fools. They are barely catching up after decades of communism and backwardness. Yeah, we're an oligarchy, one-percenters, and I hate that. So vote for Ron Paul, he's from down here in H-town, loves silver and hates the Fed.
"The only sector thriving is financial" Really? Look at GS, WFC, BAC. The only bumps they get are with I-rate talk. All exWFC had a #$%$ year.
Oil here (and not those leveraged easy-come easy go shale plays) will do fine if you sit tight and collect your divvies. Good MLPs like VNRAP (which is UP from lows in spite of oil drop because they are hedged) can still make you money.
And those who cant afford houses, or "kids" who dont want one ? They rent apartments or condos. Check out AVB, WRI, and EQR and let me know how the latest "crises" and "market shocks" have hurt them.
Not busting yer balls, Fitz just keepin it real.
“...the dollar is toast...” based on the following:
“How 9 Countries Saw Inflation Evolve Into Hyperinflation”
The United States has “outsourced” its inflation to countries like China, Mexico, Philippines, to some extent a number of other countries in the Mediterranean region and others. Some countries, like Russia, China, Saudi Arabia, Brazil and others are banding together to distance themselves from the dollar by trading in currencies other than the petro-dollar.
Meanwhile the economy here is slipping. The only sector that is thriving is the financial sector. Ask any cut-rate supermarket checker why the price of eggs, for example, is north of $2.50 per dozen. They will roll their eyes and acknowledge that it is all fraudulent. The cover-up is sudden demand for eggs, according to the mainstream press. Really? In a month’s time?
When the average person is acknowledging that something is wrong with price levels we are indeed at the precipice. In the past they bought the “inflation” argument, which now is being held in increasing doubt.
The recent surge in PM prices is probably no more than a monumental head fake. It’s a last ditch effort to draw more into the PM markets before plunging it downwards again to draw into inventory more lower cost gold and silver from the hands of small investor.
For sure they called "BS" on Super Mario, because those dudes know how to run a clean house. Yes, they inflicted some devastating pain on some FX traders, and they hammered their own exporters and tourism industry but that's nothing compared to whats down the road for those who do not heed the lesson.
“Swiss Abandon Euro-peg As QE Looms, Franc And Gold Soar Which Will Be The Currency Of The Year?”
Take note that a general stock market correction could affect the conclusions for the upside potential of PMs.
This is displayed on various websites.
a huge turn for the better.
Now, to park the estimated $1.6 Trillion in Swiss Banks costs you .075%.
Japan and Germany also have some bonds yielding negative interest.
So buying gold and silver is now going to possibly be viewed less expensive to park safe haven money.
Along with the NEED for safe haven money in these turbulent times,we have a perfect storm brewing.
Could it be? Possibly. Maybe.
Talk about LOW I rates........LOL
"There's no inflation" as long as you don't eat, drive, use medical care, etc. But the Fed has the only opinion that matters, and its "by their measure" that decision are made. I believe we cant afford and wont see a rate hike anytime soon, so PMs will be safe from that standpoint. Fear and volatility are the main plays now, and outweigh the strong dollars effect on the metals for now.
"The dollar is TOAST" compared to what ? Its been on multimonth unstoppable surge, and none of the usual suspects threaten it. EUR weakness is upon us, the ruble is kaput, and we lead the world with our anemic "recovery." Prettiest pig, buddy
Precipice of what ? Maybe the central banks credibility. Since SNB pre-empted Draghi's move on QE (hence telling the world in no uncertain terms that they were expecting a huge amount of QE and wanted no part of the euro) it will be interesting to see if Draghi fires, and what it's effect will be. If markets it's a dud, we have our answer.
Just like FXCM and I'm sure many other FX brokers, their clients traded francs highly levered. Can't really blame them since EUR:CHF never changes more than a few tenths of a percentage point every day. Until it doesn't.
I don't know that we can point to this as a direct failure owing to the macro economic environment. It seems that a very large, and really, really bad, bet was made and it didn't pan out. There will be repercussions, but the magnitude would seem to be minor save for those that had money invested, of course. I'm reminded of the timeless maxims: "Never put all your eggs in the same basket." Or, "Diversification is good."
"Hedge fund manager Marko Dimitrijevic is closing his largest hedge fund, Everest Capital's Global Fund, having lost almost all its money after the Swiss National Bank (SNB) scrapped its three-year-old cap on the franc against the euro, Bloomberg news reported on Saturday. Citing a person familiar with the firm, Bloomberg said the fund had been betting that the Swiss franc would decline."
Just another RAMP SCAM contrived by the gold/silver CALL WRITERS in the sleazy wall street club, in order to dump gazillions of ultimately WORTHLESS gold/silver CALL options into the hands of the usual gang of amateur FOOLS...and with CNBC screaming yesterday that people should buy gold/silver CALL options, that is your 100% GUARANTEE the lousy golds/silvers will now plunge into the toilet.
Sorry girls, but this pathetic DEADCAT bounce in your WORTHLESS golds/silvers has NOT been confirmed by the smaller JUNIOR stinkers (e.g. Alexco, Great Panther, Richmont, Goldenstar, etc. etc) and that PROVES WITHOUT DOUBT it is another SCAM RAMP job by the slimy banks and funds to SUCKER my POOR sweet gold/silver FAILURES into buying even more WORTHLESS gold/silver CALL options, again!!! ROFLMAO.....girls, as per Graham and Dodd, a sector can NOT possibly be undergoing a genuine sustainable uptrend when its JUNIORS repeatedly refuse to confirm the upmove.
Look out BELOW, girls, because RELATIVE to its DYING sector of silver and gold stink, this SLW trash is THE most obscene mega-bubble in USA stock market trading history---and its PANIC SELL CRASH is coming at any moment
We are seeing huge price increases at Costco and other markets. Of course the government doesn't track food prices on the CPI. (???) This is the best indication, we think, that the dollar is TOAST.