The Day the Dollar Died

[arthur]

http://www.youtube.com/watch?v=2N8gJSMoO...r_embedded#!


This fictional video actually sends shiver down my skin. If this day is to come, I will change all my SGD to AUD. Not gold though. Still not a gold bug no matter what.

[mrEngineer]

nice video but unrealistic. First of all, it does not address why QE was actually implemented in the first place. The reason is because US is already in a liquidity trap and unable to lower its interest rate. To further lower the "interest rates" to stimulate borrowing and local investment, Fed had to use QE. So the main point was ignored that if borrowing improves and investments begin to see results, the possiblity of QE3 may not even happen.

All balance of payments have to always equal. The decline in US current accounts will have to be compensated by the increase in capital account where not all the inflow of foreign investments into the treasuries. Some of these inflows goes to fund the investment or actual businesses in US which may provide the next phase of growth in the US economy.

So its which side of coin u decide to see. I am leaning more towards the asset bubble burst in Asia than hyperinflation in US.

[koh_52]

for me i put my SGD in 50% OIL related commodities....the rest 50% in RMB...maybe some Russian currency if there is spare

as for USD, i will put a 5 ft pole away from it...as far as possible.

On asset bubble burst....my take, how to burst it US keep on printing money actually you are increased the balloon insulation thicker and thicker, hence the balloon will be more difficult to burst, hehe...frictional analogy lar.

[sgd]

if they can't find anybody to buy their treasuries the fed will buy it, isn't that what they are doing now in QE1 QE2?

Bad from our point of view but I can see from the american view point this way is better and less painful this will mean they can keep spending and the best thing is dollar will lose value in time that will make american services and exports cheap again, that could lead to jobs creation that is on the minds of american voters.

Any other way of reform or overhaul will be bloody painful, will mean recession and mean job losses and americans in my view are not ready for that kind of pain no matter how much they say that they want change or reform.

Also no american president will ever want to have recession during their term in office as it affects re-election chances.

To curb spending will mean deep drastic cuts in probably in the area of military spending. Drastic cuts in overseas deployment will lead to turmoil with no big brother presence to police the world order old rivalries and old debts will return.

America Tax Pie Chart

[plaktoz]

hi sgd

i think the need for big brother to police the world order is overstated. there are just a few countries that need such a service for eg north korea and iran.

probably it is useful in the case if war happens, u can adequately protect yourself and even better to conquer the country and make it your own.

in today's context, it is more of a economy warfare rather than physical warfare.

[sgd]

If there is no global police I think we will be roti prata already swallowed up by malaysia or indonesia in no time.