Comments on: The Future of the Dollar http://www.aspousa.org/index.php/2009/10/the-future-of-the-dollar/ Truth in Energy Thu, 09 Feb 2012 00:48:31 +0000 http://wordpress.org/?v=2.6.2 By: Luís de Sousa http://www.aspousa.org/index.php/2009/10/the-future-of-the-dollar/#comment-3375 Luís de Sousa Fri, 16 Oct 2009 14:31:34 +0000 http://www.aspousa.org/?p=2602#comment-3375 Hi Dave, Glad to know you still read TheOilDrum. Best. Hi Dave,

Glad to know you still read TheOilDrum.

Best.

]]> By: Bill Simpson in Slidell http://www.aspousa.org/index.php/2009/10/the-future-of-the-dollar/#comment-3370 Bill Simpson in Slidell Thu, 15 Oct 2009 14:51:06 +0000 http://www.aspousa.org/?p=2602#comment-3370 Here is part of a discussion of the dollar by Alex Merk, of Merk Hard Currency Fund Manager, on CNBC U.S. at about 8:40 a.m. e.d.t. Thursday, Oct. 15, 2009. Merk, speaking to Joe Kernen said, " They (meaning the Federal Reserve) have now intentionally overvalued mortgage backed securities and government bonds. Why would a rational investor buy these? On the margin, rational investors will go overseas...where prices aren't as manipulated as much. So due to the Fed's actions, they are trying to push down the currency. Indeed the Fed wants to have a weaker currency. If you look at what Bernanke said about how to get out of the Great Depression, one key factor was to get off the gold standard. Well the equivalent (today) is to try to have a weaker currency. He is putting actions into his words. He is working on it, and he might be getting more than he is bargaining for." In jest, Joe Kernan eventually said, "Have someone else start your car." Referring to Mr. Merk's statement, Ken Langone, cofounder of Home Depot said, "He is absolutely right...we have monetized debt, and we continue to do it." Here is part of a discussion of the dollar by Alex Merk, of Merk Hard Currency Fund Manager, on CNBC U.S. at about 8:40 a.m. e.d.t. Thursday, Oct. 15, 2009. Merk, speaking to Joe Kernen said, ” They (meaning the Federal Reserve) have now intentionally overvalued mortgage backed securities and government bonds. Why would a rational investor buy these? On the margin, rational investors will go overseas…where prices aren’t as manipulated as much. So due to the Fed’s actions, they are trying to push down the currency. Indeed the Fed wants to have a weaker currency. If you look at what Bernanke said about how to get out of the Great Depression, one key factor was to get off the gold standard. Well the equivalent (today) is to try to have a weaker currency. He is putting actions into his words. He is working on it, and he might be getting more than he is bargaining for.”
In jest, Joe Kernan eventually said, “Have someone else start your car.”
Referring to Mr. Merk’s statement, Ken Langone, cofounder of Home Depot said, “He is absolutely right…we have monetized debt, and we continue to do it.”

]]> By: Bill Simpson in Slidell http://www.aspousa.org/index.php/2009/10/the-future-of-the-dollar/#comment-3369 Bill Simpson in Slidell Thu, 15 Oct 2009 05:42:17 +0000 http://www.aspousa.org/?p=2602#comment-3369 'The rumors of the dollar's decline are greatly exaggerated' by Martin Wolf in FT.com Oct. 13, 2009. He forgot the word 'immediate'. ‘The rumors of the dollar’s decline are greatly exaggerated’ by Martin Wolf in FT.com Oct. 13, 2009. He forgot the word ‘immediate’.

]]> By: Francis Wingate http://www.aspousa.org/index.php/2009/10/the-future-of-the-dollar/#comment-3368 Francis Wingate Wed, 14 Oct 2009 06:43:21 +0000 http://www.aspousa.org/?p=2602#comment-3368 To quote Bill Bonner - "The ultimate value of any fiduciary currency is zero. The only difference between them is how fast they get there." To quote Bill Bonner - “The ultimate value of any fiduciary currency is zero. The only difference between them is how fast they get there.”

]]> By: Bill Simpson in Slidell http://www.aspousa.org/index.php/2009/10/the-future-of-the-dollar/#comment-3367 Bill Simpson in Slidell Wed, 14 Oct 2009 02:25:12 +0000 http://www.aspousa.org/?p=2602#comment-3367 CNBC World reports that new auto sales in China will reach 12,000,000 in 2009. I'll bet China doesn't scrap too many cars every year with the income going up as fast as it is. That will mean a very rapid increase in oil demand from China. CNBC World reports that new auto sales in China will reach 12,000,000 in 2009. I’ll bet China doesn’t scrap too many cars every year with the income going up as fast as it is. That will mean a very rapid increase in oil demand from China.

]]> By: Bill Simpson in Slidell http://www.aspousa.org/index.php/2009/10/the-future-of-the-dollar/#comment-3351 Bill Simpson in Slidell Mon, 12 Oct 2009 05:31:52 +0000 http://www.aspousa.org/?p=2602#comment-3351 Tax stock and debt transfers too. I think the Brits already do. When you buy thousands or millions of dollars of stocks or bonds, a few extra bucks of tax is nothing. But it could add up to a lot in a year. Commodity transfers, I don't know what that might do. A value added tax may also be needed. A VAT is regressive, which means that it is probably the one that the Congress will implement. One thing is for sure, if the budget deficit continues to grow, the dollar will continue to become worth less and less. Taxes are bad, but worthless money is worse, a lot worse. Tax stock and debt transfers too. I think the Brits already do. When you buy thousands or millions of dollars of stocks or bonds, a few extra bucks of tax is nothing. But it could add up to a lot in a year. Commodity transfers, I don’t know what that might do. A value added tax may also be needed. A VAT is regressive, which means that it is probably the one that the Congress will implement. One thing is for sure, if the budget deficit continues to grow, the dollar will continue to become worth less and less. Taxes are bad, but worthless money is worse, a lot worse.

]]> By: Roberto Zamit http://www.aspousa.org/index.php/2009/10/the-future-of-the-dollar/#comment-3326 Roberto Zamit Fri, 09 Oct 2009 21:07:22 +0000 http://www.aspousa.org/?p=2602#comment-3326 Sorry, but that is what I think about the critical situation the world is experiencing. Furthermore, according to my knowledge and perception,I believe that all what societies are suffering is only the begining of the fall into a even deeper abyss. My council: trust nobody in power, prepare yourself for the worst and good luck. Sorry, but that is what I think about the critical situation the world is experiencing. Furthermore, according to my knowledge and perception,I believe that all what societies are suffering is only the begining of the fall into a even deeper abyss.
My council: trust nobody in power, prepare yourself for the worst and good luck.

]]> By: Roberto Zamit http://www.aspousa.org/index.php/2009/10/the-future-of-the-dollar/#comment-3325 Roberto Zamit Fri, 09 Oct 2009 20:52:51 +0000 http://www.aspousa.org/?p=2602#comment-3325 The Dollar has no future and the further collapse of worl economy is a matter of time because all what is happening is part of an old and well elaborated plan towards a world government an a single currency. Is this a conspiracy? Yes, it is, and those who still have doubts about it should leave the books of economics and read a bit about the history of wealth and politics in relation with our western financial and banking system. Thank you, Roberto Zamit The Dollar has no future and the further collapse of worl economy is a matter of time because all what is happening is part of an old and well elaborated plan towards a world government an a single currency.
Is this a conspiracy? Yes, it is, and those who still have doubts about it should leave the books of economics and read a bit about the history of wealth and politics in relation with our western financial and banking system.

Thank you, Roberto Zamit

]]> By: Bill Simpson in Slidell http://www.aspousa.org/index.php/2009/10/the-future-of-the-dollar/#comment-3319 Bill Simpson in Slidell Fri, 09 Oct 2009 08:24:17 +0000 http://www.aspousa.org/?p=2602#comment-3319 "That you don't know what you got till it's gone" "They Paved Paradise" by Counting Crows. So how do we prevent the collapse of the dollar? I think that we need to reduce the budget deficit, so that investors won't lose faith in the value of the dollar. We can cut the Federal budget, grow the economy, and raise taxes. You can bet that some budget cutting will occur, but in order to make a real impact on the deficit, the cuts would have to be so painful, that they would be political suicide. Wouldn't we all love to grow the economy like during the dotcom bubble days. How that can be done with the existing debt levels, baffles me. The post peak oil New Military Government of the United States will probably start massive public works programs to build things like the North American Water and Power Alliance plan in order to put people to work, since environmental laws will no longer exist. But that is another discussion. To me, the only hope of preventing a dollar collapse is to implement a steeply progressive income tax such as existed back in the 1950's. You know, when that radical leftest General Dwight D. Eisenhower was President. Back then, if you made over $300,000 (that would be something like $3,000,000 today) you then began to give 91% of anything above that to the IRS. Did a lot of high income people quit their jobs back then, because they were paying too much tax? Maby a few did, but I suspect that the economy still managed to somehow function without them. And funding the Cold War wasn't cheap. Let us look at a few figures from IRS records, according to the new book, "The Looting of America." In 1982 the average net worth of each of the top 400 earners was (in 2008 dollars) $604,000,000. By 1995 it had risen to $1,700,000,000. Now it is $3,900,000,000! The richest 400 earners in the United States have a total yearly income of over $1,560,000,000,000. That is roughly 10% of the gross domestic product of the USA. Of course, as we have recently seen, an enormous amount of money is being illegally hidden from the IRS in offshore tax havens. Can you do that? No one knows how much money is stashed in tiny, mostly formerly British islands all over the globe, but I'll bet it is in the trillions. UBS, a Swiss bank that just got some of your tax money thru AIG, just pled guilty to helping wealthy Americans evade income tax. They paid a tiny fine. I loved the story of how they taught people to stuff diamonds inside toothpaste tubes, so as to get them thru airports undetected. The encrypted computers at the clubs down in Florida were interesting too. Then there is the inheritance, I mean, 'death' tax. Somewhere I read that the richest 10% of Americans are now worth something like $47,000,000,000,000. While I do NOT advocate making the descendants of the rich poor, or even middle class, we must remember that all that money was earned within a civilization of which they were but a tiny part. Bill Gates once said that the whole social system helped him get so rich, not finding gold on some land that he owned. We can no longer afford to let people leave each of their children hundreds of millions of dollars. Some sort of very progressive inheritance tax should be adopted, with some initial reasonable amount being tax free, until the debt is brought under control. After the danger is passed, the rate can be reduced. I don't want to punish anyone, nor am I jealous. Most rich people worked a lot harder than I ever did, but to prevent a dollar collapse, everyone needs to do their part. If the dollar collapses, and chaos ensues, the rich might be in the greatest danger. Remember what happened to the last Romanovs? They certainly have the most to lose. I am always amused when I see people on Faux TV say that if we took all the money from the rich, we still couldn't balance the budget, pay off the National debt, or whatever. Applying that logic, why did you and I ever pay even one penny of tax? Would more taxes on the rich solve the dollar problem? No, but it would sure help. Do I believe that any of the aforementioned will happen, of course not. The US Senators are nearly all millionaires. The really fun part will be to see what they will use to pay for imported oil. Food export cartel anyone? “That you don’t know what you got till it’s gone”
“They Paved Paradise” by Counting Crows.
So how do we prevent the collapse of the dollar? I think that we need to reduce the budget deficit, so that investors won’t lose faith in the value of the dollar. We can cut the Federal budget, grow the economy, and raise taxes. You can bet that some budget cutting will occur, but in order to make a real impact on the deficit, the cuts would have to be so painful, that they would be political suicide.
Wouldn’t we all love to grow the economy like during the dotcom bubble days. How that can be done with the existing debt levels, baffles me. The post peak oil New Military Government of the United States will probably start massive public works programs to build things like the North American Water and Power Alliance plan in order to put people to work, since environmental laws will no longer exist. But that is another discussion.
To me, the only hope of preventing a dollar collapse is to implement a steeply progressive income tax such as existed back in the 1950’s. You know, when that radical leftest General Dwight D. Eisenhower was President. Back then, if you made over $300,000 (that would be something like $3,000,000 today) you then began to give 91% of anything above that to the IRS. Did a lot of high income people quit their jobs back then, because they were paying too much tax? Maby a few did, but I suspect that the economy still managed to somehow function without them. And funding the Cold War wasn’t cheap.
Let us look at a few figures from IRS records, according to the new book, “The Looting of America.” In 1982 the average net worth of each of the top 400 earners was (in 2008 dollars) $604,000,000. By 1995 it had risen to $1,700,000,000. Now it is $3,900,000,000! The richest 400 earners in the United States have a total yearly income of over $1,560,000,000,000. That is roughly 10% of the gross domestic product of the USA. Of course, as we have recently seen, an enormous amount of money is being illegally hidden from the IRS in offshore tax havens. Can you do that? No one knows how much money is stashed in tiny, mostly formerly British islands all over the globe, but I’ll bet it is in the trillions. UBS, a Swiss bank that just got some of your tax money thru AIG, just pled guilty to helping wealthy Americans evade income tax. They paid a tiny fine. I loved the story of how they taught people to stuff diamonds inside toothpaste tubes, so as to get them thru airports undetected. The encrypted computers at the clubs down in Florida were interesting too.
Then there is the inheritance, I mean, ‘death’ tax. Somewhere I read that the richest 10% of Americans are now worth something like $47,000,000,000,000. While I do NOT advocate making the descendants of the rich poor, or even middle class, we must remember that all that money was earned within a civilization of which they were but a tiny part. Bill Gates once said that the whole social system helped him get so rich, not finding gold on some land that he owned. We can no longer afford to let people leave each of their children hundreds of millions of dollars. Some sort of very progressive inheritance tax should be adopted, with some initial reasonable amount being tax free, until the debt is brought under control. After the danger is passed, the rate can be reduced. I don’t want to punish anyone, nor am I jealous. Most rich people worked a lot harder than I ever did, but to prevent a dollar collapse, everyone needs to do their part. If the dollar collapses, and chaos ensues, the rich might be in the greatest danger. Remember what happened to the last Romanovs? They certainly have the most to lose. I am always amused when I see people on Faux TV say that if we took all the money from the rich, we still couldn’t balance the budget, pay off the National debt, or whatever. Applying that logic, why did you and I ever pay even one penny of tax?
Would more taxes on the rich solve the dollar problem? No, but it would sure help. Do I believe that any of the aforementioned will happen, of course not. The US Senators are nearly all millionaires. The really fun part will be to see what they will use to pay for imported oil. Food export cartel anyone?

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