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thepeel
Joined: 08 Aug 2004
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 Posted: Sat Nov 24, 2007 8:58 pm Post subject: U.S. dollar could plunge 90% |
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RHINEBECK, N.Y., Nov. 19 (UPI) -- A financial crisis will likely send the U.S. dollar into a free fall of as much as 90 percent and gold soaring to $2,000 an ounce, a trends researcher said.
"We are going to see economic times the likes of which no living person has seen," Trends Research Institute Director Gerald Celente said, forecasting a "Panic of 2008."
"The bigger they are, the harder they'll fall," he said in an interview with New York's Hudson Valley Business Journal.
Celente -- who forecast the subprime mortgage financial crisis and the dollar's decline a year ago and gold's current rise in May -- told the newspaper the subprime mortgage meltdown was just the first "small, high-risk segment of the market" to collapse.
Derivative dealers, hedge funds, buyout firms and other market players will also unravel, he said.
Massive corporate losses, such as those recently posted by Citigroup Inc. and General Motors Corp., will also be fairly common "for some time to come," he said.
He said he would not "be surprised if giants tumble to their deaths," Celente said.
The Panic of 2008 will lead to a lower U.S. standard of living, he said.
A result will be a drop in holiday spending a year from now, followed by a permanent end of the "retail holiday frenzy" that has driven the U.S. economy since the 1940s, he said. |
http://www.upi.com/NewsTrack/Business/2007/11/19/forecast_us_dollar_could_plunge_90_pct/4876/ |
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keane
Joined: 09 Jul 2007
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| Posted: Sat Nov 24, 2007 10:09 pm Post subject: |
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90% already posted
You don't appear to have read the forum before posting today. |
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thepeel
Joined: 08 Aug 2004
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| Posted: Sat Nov 24, 2007 10:14 pm Post subject: |
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| I tend to give up on threads once the true believers in adult diapers get all upset. Besides, a 90% decline deserves a thread to itself. It is the death of an empire. |
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dogshed
Joined: 28 Apr 2006
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| Posted: Sat Nov 24, 2007 10:19 pm Post subject: |
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So how many won would I need to pay off my $40,000
in student loans?
0.10 x 930 x 40,000 = 3 720 000 won
woo hoo |
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dogshed
Joined: 28 Apr 2006
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| Posted: Sat Nov 24, 2007 10:20 pm Post subject: |
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| keane wrote: |
90% already posted
You don't appear to have read the forum before posting today. |
Your reply bumped this one up so it's the first one I saw. |
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keane
Joined: 09 Jul 2007
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| Posted: Sat Nov 24, 2007 10:25 pm Post subject: |
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| thepeel wrote: |
| I tend to give up on threads once the true believers in adult diapers get all upset. Besides, a 90% decline deserves a thread to itself. It is the death of an empire. |
Don't be a afraid of the true believers: Darwin can tell you what will become of them.
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Ya-ta Boy
Joined: 16 Jan 2003
Location: Established in 1994
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| Posted: Sun Nov 25, 2007 12:25 am Post subject: |
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So how many won would I need to pay off my $40,000
in student loans?
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If the US economy collapsed, who would be buying Korea's Kias and microchips? I think things would get pretty grim here too. Not to mention Canada and China and a big chunk of Europe. |
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sojourner1
Joined: 17 Apr 2007
Location: Where meggi swim and 2 wheeled tractors go sput put chug alugg pug pug
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| Posted: Sun Nov 25, 2007 12:45 am Post subject: |
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Yes, the US is the central point in todays global economy, but that can and will eventually change. If the US dollar value drops as the economy collapses, then the whole world will be shaken for quite some time to come.
This will mean that hard times are ahead of us due to there being so few jobs that pay anything. It already is a fairly bad situation for many young to middle aged adults after college, but we have not seen anything yet.
We will just have to keep going and see what we can make of the future for ourselves. I know the future doesn't look any better than today and in fact, looks terribly worse from an economic and financial perspective. Even if you are inheriting from mom and dad, it may not be worth much or it may all be lost in the event the banks fail. If you see a trend of people withdrawing many deposits and liquidating securities causing a run on the banks, then run for the hills and don't look back.
I do like the idea of it costing only 3.7 million Korean won to pay my US $40,000 student loan, but if things get that bad to allow this, it won't matter anyhow. |
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contrarian
Joined: 20 Jan 2007
Location: Nearly in NK
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| Posted: Sun Nov 25, 2007 12:46 am Post subject: |
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If the US dollar dropped 90% here is what would happen:
1. Since almost all commerce between the US and other countries is contracted in US dollars, the creditor nations such as China and Japan would be repaid in US dollars.
2. This would have the effect of the US escaping 90% of the "real debt".
3. There would be a bad recession in the US and the sales of imported goods would be drastically reduced. Samsung and Hyudai would be in serious trouble.
4. A large percentage of those who export to the US invest in the US as a safe place to put money.
>> The Americans beat the French out of huge debts after the Revolutionary War.
>> They then bought Louisiana From the French cheap.
>> They did the same thing to the British after the Civil War.
<< They did it to Europe after WWWI and again in WWII.
>> They fif it to Saudit Arabia sfter the first oli crisis. Adnan Koshogi the Saudi arms dealer brought property all over the US. He lost millions in Utah and Georgia. The buildings her invested in sold later for about 56 cents on the dollar. |
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keane
Joined: 09 Jul 2007
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| Posted: Sun Nov 25, 2007 12:49 am Post subject: |
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| sojourner1 wrote: |
| I do like the idea of it costing only 3.7 million Korean won to pay my US $40,000 student loan, but if things get that bad to allow this, it won't matter anyhow. |
Can't have too much good credit!
100% Chance of Recession
| Quote: |
| David Tice, Prudent Bear Fund says there is a 100% Chance of Recession on Bloomberg News Video. Says stock market to decline 50-60%. |
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contrarian
Joined: 20 Jan 2007
Location: Nearly in NK
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| Posted: Sun Nov 25, 2007 4:14 am Post subject: |
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| A recession is good, just in time to blame it on the Democrats. That would make Hillary Clinton or Barak Hussein Obama a one term wonder. |
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thepeel
Joined: 08 Aug 2004
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| Posted: Sun Nov 25, 2007 4:17 am Post subject: |
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| contrarian wrote: |
| A recession is good, just in time to blame it on the Democrats. That would make Hillary Clinton or Barak Hussein Obama a one term wonder. |
Uh, a recession is two quarters of neg or very low growth. It will likely be declared in Q2. This is a perfect time for the Dems (and one Republican) to capitalize during the election campaign. |
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keane
Joined: 09 Jul 2007
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| Posted: Sun Nov 25, 2007 5:30 am Post subject: |
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| thepeel wrote: |
| contrarian wrote: |
| A recession is good, just in time to blame it on the Democrats. That would make Hillary Clinton or Barak Hussein Obama a one term wonder. |
Uh, a recession is two quarters of neg or very low growth. It will likely be declared in Q2. This is a perfect time for the Dems (and one Republican) to capitalize during the election campaign. |
As you pointed out with that chart on M3, the US is already there. |
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thepeel
Joined: 08 Aug 2004
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| Posted: Sun Nov 25, 2007 5:33 am Post subject: |
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| Right. Quite a few bears already think we are there. I tend to agree. But quite a large amount of market behaviour is perspective and subjective feelings about how "the market" is "doing" (the is best demonstrated in how people point to an increasing stock market as evidence that "the economy" is doing well, as a certain poster recently did with Korea on this site). That's why I used the word "declared". I don't think the government-wall street will be forced to admit it until Q2. |
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thepeel
Joined: 08 Aug 2004
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