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Why saving US$ is bad.

Discussion in 'BlackHat Lounge' started by bloggerdon, Jul 7, 2010.

  1. bloggerdon

    bloggerdon Registered Member

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    It's simple, the rate of inflation has been greater than the shitty 3% interest you get on your savings... especially when they print out trillions of us dollars. Also, more importantly, the UN is fed up with the US Dollar, it will no longer be the reserve currency for the world. That means that dollars are going the way of the Germans' Marks, hyperinflation my friends. No one wants monopoly money, so thats why If I were holding american dollars I would invest them right away. If you dont know where to invest them a good investment is finite materials such as gold, silver, and platinum. These finite materials keep their value because there is a limit to them, the US$ is infinite however... it is just paper money. Worthless.

    China is definitely the new america, and the arab countries are wise in building up their stockpiles of gold. Heres the start of the new economy, the economy where a poor kid in a shanty town with just a PDA can become a millionaire through internet marketing. These are exciting times for those in the know.
     
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  2. HoNeYBiRD

    HoNeYBiRD Jr. VIP Jr. VIP

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    it may sound noobish, but i can never really understand what is this big hype lasting for thousands of years about precious metals, stones etc.
    yea, some of them are useful in industry for example, but you can't live in it, it doesn't make you food, water...is it only because of they're relatively rare & shiny?!

    instead of investing in real estate & land what has a real value
     
  3. Fwiffo

    Fwiffo Power Member

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    People choose metal assets because they have the same "perception of limited quantity" as land / real estate (ie you can't just run a printing press and make more of them), however are more liquid - ie if you need food, you can't just sell 3 square feet of land from a few acres - but it is easy to sell increments of items like gold / silver / jewels / etc. in manageable quantities. (yes, real estate produces a cash flow, but many people don't buy it for that purpose)

    As well, usually gold / silver / etc. isn't too leveraged (ie not a whole lot of people buying it with heavy amounts of debt like with real estate / land) so it's usually a "straight price" instead of the stupid prices that we've seen in the real estate market in the last few years.

    Personally, I don't touch the stuff (metals / etc). I'm actually taking the other side of the trade from the OP's position. We're living in interesting times.
     
  4. voodoo1

    voodoo1 Registered Member

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    China is not the new America, you can't compare the two!
     
  5. jclz123

    jclz123 Regular Member

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    It is, china produces and saves, america now consumes and does not produce nearly enough. America is riddled with debt, and Obama won't stop spending.
     
  6. hillbill

    hillbill Registered Member

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    Dont put your money in gold, the price for gold has never been higher. A good investment right now will be BP
     
  7. bloggerdon

    bloggerdon Registered Member

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    Relative to the US dollar gold will go up because the dollar will go down until it reaches 0. I'd rather invest in the drilling companies that BP outsources to instead of BP, you avoid stock volatility due to brand damage. But yes investing in BP now should be profitable because they are cheap, and should go up when there are other problems for everyone to talk about.

    Chinas the bank, and americas the guy with a mortage, hp's and all sorts of loans to the bank (China, and the rest of the world). I like this thread :)

    What I dont like though is that so many innocent americans are being duped out of their money, and more importantly, their dreams. It really is a dog eat dog world out there, not pretty.

    EDIT: Gold only goes up due to currency devaluing. Gold's value actually remains rather constant, because there is a finite, and 'measurable' supply.
     
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  8. bloggerdon

    bloggerdon Registered Member

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    gold etc is attractive because it retains its value. when a currency is dying people rush towards gold so they dont lose everything. Inflation is the hidden tax.

    What has real value? I think the question you're looking for is "Where is the cash flowing?" It's simple. Invest in where cash is flowing (NOT JUST DEBT). Invest where there is a good/service in demand that is being produced. For example, it has been good to invest in the Chinese companies that produce Apples products for a long time now, ever since the iPod really.
     
  9. voyevoda

    voyevoda Regular Member Premium Member

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    The government won't stop spending. FTFY.

    [​IMG]

    You should go back in time and tell Reagan to keep his job as a movie star instead of running for President. :)


    Disclaimer: I am not a Democrat or Republican.
     
  10. HoNeYBiRD

    HoNeYBiRD Jr. VIP Jr. VIP

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    thanks, i know that :)
    but why gold does retain its value? that's what i don't understand, there's no need for gold to live, that's why i say it has no real value
    what if somebody say tomorrow gold has no value from now on, and you can't buy anything with that?
    gold is nothing more just a shiny, relatively rare, heavy piece of stone in my eyes with no real value
     
  11. thedudelady

    thedudelady Registered Member

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    you guys should start a financial advisory forum i will signup as it will give me great entertainment :D

    On a serous note , i live in SA and the other day when i got back from Johannesburg I was wating for my wife to pick me up at the Durban airport. With the soccer world cup there is a lot of tourist all to be seen.

    Anycase while waiting i see a copper coin lying on the tarmac and ignored it as our copper coins are worthless. I then decided to pick it up and it happens to be a USA 1c 201 all brand spanking new with lot of scratches on the one side.

    Hey did't even know the USA still uses 1c. Anycase to me that shows the value of the $ and i take this coins as a indication for my income. small but it will grow and shifting my income to $ as that way i will work less and earn more while i live in SA

    So for that american that dropped that coin thanks
     
  12. silent_thunder

    silent_thunder Regular Member

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    American society is aging, the ratio of old (senior citizens) to young is high, which means more resources gets absorbed through insurance, health and other sectors...

    Old people are not exactly contributing the economy earn money hence the economic cycles fluctuate according the population.

    You should not control the population either as china will soon find out what happens when you do that :)

    So you have to face it no other way
     
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  13. TermsB

    TermsB Senior Member

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    Keep in mind gold and silver have actual use. Silver is the most conductive metal we have, and gold conducts with very little corrosion.
     
  14. cashfap

    cashfap Junior Member

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    The only solid investments in this world are food and guns. When the shit hits the fan good luck supporting yourself with a bar of "precious metal"
     
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  15. chano420

    chano420 Regular Member

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    there is some use practical use for gold. They use it in computers and many other electronics. However our love for gold came before we had currency, gold was essentially the first currency, because it was much easier to trade gold for 1 cow and a dozen eggs than it was to trade half a horse for 1 cow and a dozen eggs. I guess our love for it just grew with time. You do love gold dont you??? :p
     
  16. HoNeYBiRD

    HoNeYBiRD Jr. VIP Jr. VIP

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    thanks guys, i know we use gold, diamond and whatnot in industry, but only this fact doesn't explain their price
    i still don't understand these few thousand year old hype around these precious materials :)
    no thanks, i prefer girls :p
     
  17. bertbaby

    bertbaby Elite Member

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    The comment that China is the new America doesn't quite make sense keeping in mind it's always fashionable to knock the US. If any country will experience hyperinflation it's China. They are addicted to unsustainable GDP's between 8 to 10% a year. When that cycle ends, as they all do, they don't have political infrastructure to deal with the unrest among the masses.

    At that point it will be time for their leadership to galvanize the 25 million surplus Chinese males that are now looking for mates (the result by the way of their female infanticide practices) into an army designed to takeover much of Southeast Asia. One problem: after the initial shot in the arm war sucks for sustained economic growth! And don't talk about WWII and the US, all of our competitors literally had to rebuild their economies from scratch.

    Fun times ahead and America once again becomes the safe refuge for all! I agree with the opportunity regarding Internet marketing and the ability to exploit this turmoil.
     
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  18. bloggerdon

    bloggerdon Registered Member

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    Land, seeds, and gardening tools :) ftw. Anyways, the greatest asset you will ever have is your mind, we can all agree on that. It's financial intelligence and your ability to work as a team that will make you a success. No wonder I hated school, they train you to become a worker... I even had to cringe when my University lecturer said "when you go out into the workforce"... I was so ready to throw my shoe at him for speaking such foul language.