Good Time to dump Gold and buy the dollar?

Darla said:
LOL, I couldn’t help it.

I didn’t know that about the euro though, it’s interesting information, though doesn’t bode well for my dream trip to Paris next New Year’s.
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No, it doesn't bode well for my plans to go to the tour de France either.
 
Obfuscate said:
If I were to dump gold I'd wait a few months, but would get alot out before gold starts losing to the dollar, which imo will happen 2nd half of 08.
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Will depend a lot on how bad our economy gets. As I stated, I think we hit $950 before any type of breakdown. Personally, I think we hit that by the end of February at the latest.
 
Obfuscate said:
With M1 money decreasing are we setting up for the dollar to strengthen and lower inflation?

http://bp2.blogger.com/_gL4N3uYQG50/R2lvazIMjOI/AAAAAAAAAeQ/m1LePwaB_14/s1600-h/101-3.GIF
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While it saddens me to say this, I don't see much in our future to give hope on the strengthening the dollar, China's diversifying it's holdings, OPEC talking of using the EURO in trade vs dollars, our 9 trillion dollar debt, we're at historic lows, which means you can get them relatively cheep, however there isn't much hope, especially if we have a Democrat controlled Congress and President, given their teenager with a credit card Presidential campaigns, that our fiscal position will strengthen with regard to the value of our currency, don't forget our record shattering trade deficit.
 
WRL said:
While it saddens me to say this, I don't see much in our future to give hope on the strengthening the dollar, China's diversifying it's holdings, OPEC talking of using the EURO in trade vs dollars, our 9 trillion dollar debt, we're at historic lows, which means you can get them relatively cheep, however there isn't much hope, especially if we have a Democrat controlled Congress and President, given their teenager with a credit card Presidential campaigns, that our fiscal position will strengthen with regard to the value of our currency, don't forget our record shattering trade deficit.
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That's right it will be ALL the dems fault. George W. Bush had NOTHING to do with us getting to here and spending like a drunken sailor. Shit I Imagine that in 2 years time Willie you will have blamed all of this on the Dems.
 
The only one to author a balanced budget in 25 years was a Republican, Newt Gingrich, the only one's who've talked about a balanced budget amendment are Republicans. Who just fought the Dims when they wanted to expand welfare to cover people making 80,000 a year, Republicans.
 
Yes and George W Bush and the Republicans hardly spent a thing while they controlled both. The pill bill anyone?
 
WRL said:
While it saddens me to say this, I don't see much in our future to give hope on the strengthening the dollar
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The trade deficit is no big deal, it’s a goods surplus, and China is growing at 10% a year and they will have to diversify their holdings. The debt is very bad but remember it was Clinton with a Republican congress that had budget surplus. It’s this war in Iraq, doubling the dept of education, pill bills and tax cuts that are the newest cause of the debt. Don’t get me wrong tax cuts are not the problem; it’s spending however tax cuts can give short term stimulus but in the long run without spending cuts just leads to debt. What we need is gridlock again and sound monetary policy. Until the public demands spending cuts I can’t trust either party. Inflation will be the greatest affect on the dollar and inflation {at least long run} is from too much money chasing too few goods, and at least one of the main ways of determining the money supply has actually decreased.
 
yes dhula I pulled a chart of Currencey in Europe vs the Dollar. As usual what you try to do is peck at a punctuation mark because the topic is way over your head.
 
WRL said:
The only one to author a balanced budget in 25 years was a Republican, Newt Gingrich, the only one's who've talked about a balanced budget amendment are Republicans. Who just fought the Dims when they wanted to expand welfare to cover people making 80,000 a year, Republicans.
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What a load of well spun crap that is. 1960 was the last time any President or Congress lowered the national debt in a fiscal year.

1960

All the bullshit talk about a "balanced budget" or "budget surplus" is just that..... bullshit. Because they are both meaningless if you do not stick to the budget. If you overspend, you raise the nations debt.

Ike was President the last time it was lowered year over fiscal year.
 
Superfreak said:
What a load of well spun crap that is. 1960 was the last time any President or Congress lowered the national debt in a fiscal year.

1960

All the bullshit talk about a "balanced budget" or "budget surplus" is just that..... bullshit. Because they are both meaningless if you do not stick to the budget. If you overspend, you raise the nations debt.

Ike was President the last time it was lowered year over fiscal year.
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They balanced the budget, but managed to spend every cent of the surplus, so factor in interest, and you're right, but technically I'm not wrong either.
 
Obfuscate said:
The trade deficit is no big deal, it’s a goods surplus, and China is growing at 10% a year and they will have to diversify their holdings. The debt is very bad but remember it was Clinton with a Republican congress that had budget surplus. It’s this war in Iraq, doubling the dept of education, pill bills and tax cuts that are the newest cause of the debt. Don’t get me wrong tax cuts are not the problem; it’s spending however tax cuts can give short term stimulus but in the long run without spending cuts just leads to debt. What we need is gridlock again and sound monetary policy. Until the public demands spending cuts I can’t trust either party. Inflation will be the greatest affect on the dollar and inflation {at least long run} is from too much money chasing too few goods, and at least one of the main ways of determining the money supply has actually decreased.
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Nice post, however I disagree with your point on the trade deficit being 'no big deal'. Large trade deficits have never really benefited nations, all the way back to the Roman Empire, many have argued the trade deficit starting around 2000 years ago begin to mark the fall of Rome.

China doesn't have to diversify their holdings, they're doing quite well by not, but hats off to Treasury Sec. Snow, for getting them to commit and actually make a move in this direction. Getting them on a level playing field regarding trade is a double edged sword however being how many T Bills, or dollars they could unload, we have to be careful to watch the value of our currency.

You know McCain argued the same things regarding the tax cuts, he simply stated without corresponding spending cuts the tax cuts where fiscally irresponsible, it's one of the main reason's I plan to vote for him, he'll watch the value of the dollar, it's not even mentioned by any-other candidate. I hope you can put your differences aside and vote for McCain, on these principles, gridlock, and a fiscal conservative President to reign in spending.
 
WRL said:
They balanced the budget, but managed to spend every cent of the surplus, so factor in interest, and you're right, but technically I'm not wrong either.
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Yes, you are correct that they "balanced the budget". My point was BFD. Any idiot can create a balanced budget. That is the easy part. It is STICKING to the budget that is the hard part. The part that none of the morons in either party have managed to accomplish in the past 47 years.

So bottom line, standing up and proclaiming balanced budgets or budget surplusses as some sort of accomplishment is simply partisan spin. (no matter which side is doing it)
 
Almost a year later and it looks like the dollar is slightly higher, gold is down and inflation is of no concern and if anything deflation is the current worry. The Fed has pumped up the M1 the last few months maybe we'll have inflation worries in 18 Months to a year again.
 
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