Thursday, October 15, 2009

Coordinated Intervention Won’t Work in Dollar Collapse

Oct. 15 (Bloomberg) -- The dollar may drop to 50 yen next year and eventually lose its role as the global reserve currency, Sumitomo Mitsui Banking Corp.’s chief strategist said, citing trading patterns and a likely double dip in the U.S. economy.

“The U.S. economy will deteriorate into 2011 as the effects of excess consumption and the financial bubble linger,” said Daisuke Uno at Sumitomo Mitsui, a unit of Japan’s third- biggest bank. “The dollar’s fall won’t stop until there’s a change to the global currency system.”
(snippet)
“We can no longer stop the big wave of dollar weakness,” said Uno, who correctly predicted the dollar would fall under 100 yen and the Dow Jones Industrial Average would sink below 7,000 after the bankruptcy of Lehman Brothers Holdings Inc. last year. If the U.S. currency breaks through record levels, “there will be no downside limit, and even coordinated intervention won’t work,” he said.
LINK HERE

8 comments:

  1. Peter Schiff said in an interview six days ago that one of his favorite currencies is the Yen. His least favorite currency to hold is of course the dollar.

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  2. It's not too late to go and convert savings into tangible assets , gold and silver , canned goods, ammo.

    Silver will probably go up the most in the short term. Pay cash (or max out the credit cards) take delivery in person at a reputable coin shop or bullion dealer.


    Don't be worried about any 'Fibbonaci' retracements. General trend lines wobble along their trajectories. The PTB did a great job of wobbling Gold down many times over the long term general trend from $350 to 1050. Smooth the curves over months and not days. Many individuals sold on dips fearing a longer downward trend that didn't materialize. In the words of Public Enemy 'Don't believe the Hype'.

    Not to mention 'We've got to fight the Powers that Be'

    Don't store your valuables in a bank deposit box. If they declare a bank holiday or emergency, you will not be allowed access.
    Bury it under a tree somewhere, known only to yourself. Contrary to the mantra of many
    'internet security experts', Obscurity is the only security.

    Hence 'Government Secrecy'

    You wouldn't want to be one of those with all your holdings in a safety deposit box the government confiscates as part of a 'wider investigation into the illegal proceeds of many individuals in the area' as they did in Great Britian not too long ago.

    As goes London, so goes the world.

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  3. Wow, the Dog Poet must have a sore head from wearing such a big tin foil hat

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  4. Absolutely right Dog Poet and historically correct. After the Federal Gold confiscations, you were not allowed access to your safety deposit box without a federal officer present to examine the contents.

    This time around they'll probably just go through them without you around.

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  5. keeing it in your house is the best bet , have it safeguarded by a R)FLe , i prefer the Russian SKS 7.62x39 mm assault R)fle

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  6. Put your silver or gold where no one would think to look. Get creative. Then buy a safe working or not. You can usually get a used one for $100 or so off Craigslist. Put the safe where it can be found. Fill it with rocks. Just heavy enough where it takes two guys to carry it off.

    Leave a book on top of it about how to invest in gold or diamonds.

    The thieves will focus on stealing the safe.

    Also, it is easy to set up auto-record night vision indoor/outdoor wireless IP cameras now - around $125. As soon as it sees movement in the area it starts filming. The recording PC can be anywhere, a cheap notebook tucked away. No DVR required.

    Point the camera at the safe. This will get you pictures of the perps and reinforce that you are protecting something valuable.

    Thieves are stupid; not difficult to outsmart them.

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  7. An SKS is a horrible short-range home defense weapon. The bullet will penetrate walls and head off to your neighbors house and you will be in a world of shit.

    A handgun with shotshells or hollow points would do the trick. Maybe a shotgun with birdshot. You are stopping a man, not a T-800.

    Keep the love inside your home!

    A good trick is to load a shotgun with two loads of lawyer ammo (rubber bullets) then the real thing. The fact that you tried to use non-lethal means at first will go a long way at your trial.

    If we are living in anarchy of course, all bets are off.

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  8. Make sure if you bury or hide your PMs disguise it with a top layer of junk metal to fool those who use metal detectors.

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Everyone is encouraged to participate with civilized comments.