True or not? (US Dollar about to collapse)

[kaycivine]

http://www.naturalnews.com/039744_US...l_Reserve.html


I don't know what to think, tell me your thoughts? (Its seems a little bit paranoid-based to me...but who knows)

[evilfarmer]

I'm in a macro econ class right now, so we have been talking about some of the issues brought up in this "news" article that are true.

Cyprus did freeze the banks due to a feared run after it was exposed that the EU was going to acquire 10% of every bank account in an agreement to bail out the country. Cyprus has also voted down to accept the EU's offer and is looking to Russia to sell Natural Gas Rights as far as I am aware. I have not been keeping a close eye on the situation.

The treasury is printing more money to try and keep inflation low so that lending will be encouraged and the economy will hopefully be stimulated. This can back fire and cause hyperinflation. However once the economy recovered the treasury would remove the excess cash to try and maintain inflation. Our standing with other countries that is looked at like a Credit Score is GDP and devaluing the dollar this way reduces GDP which means we lose standing with other countries in trade negotiation and in our ability to borrow.

[HYHYBT]

Too much of this is conspiracy-minded paranoia to bother trying to ferret out any bits of truth that accidentally fell into the mix. The basic premise should be enough to keep people from taking it seriously.

[kaycivine]

Too much of this is conspiracy-minded paranoia to bother trying to ferret out any bits of truth that accidentally fell into the mix. The basic premise should be enough to keep people from taking it seriously.

Then I must know some big fools...cause a lot of my friends are taking this seriously. I can't, but I thought it was just me not being educated enough

[D_Yeti_Esquire]

Then I must know some big fools...cause a lot of my friends are taking this seriously. I can't, but I thought it was just me not being educated enough

It's not a question of being foolish or not. For some people, the Chicken Little dance makes a lot of money. If I buy up something like the Swiss Franc or actual gold AND can convince a number of people the US currency is going to collapse to the point that they try to bail out and buy into other assets, I can effectively make money (and not just a little bit) by buying the other asset first. Make no mistake, there are people who would love nothing better than to cause a panic. Without getting political, the collapse of the US fiat currency is the darling of the more Libertarian economic set that tend to be in love with the gold standard. However, those people are often unfamiliar with concepts that go along with that standard like sterilization of gold reserves and inability of gold standard countries to adjust prices quickly thus creating deep depressions.

As to the article itself... it's the same sabre rattling I've heard numerous times before. It doesn't really reflect the observed inflation rate which has been between 0-4% which is by no means historically high. It doesn't particularly build a case that the money injected into the economy isn't being offset by gains in production as a result of the debt relief provided by those programs. A necessary precursor to hyperinflation is a GDP that can't cover the debt load. The US is high when it comes to debt, but not that high. It just makes the case: inflation bad, central bankers evil, and they just learned the definition of ponzi scheme.

We're through QE3 at this point and there is rumbling that it may need to be stopped as its effectiveness has dwindled while other economic indicators are up. So as evilfarmer points out, it may be time to start buying those bonds back and removing money from the supply but it will probably happen very slowly if at all. After all, the money supply is meant to go up as long as the economy continues to grow. The Fed can easily just sit back and let the economy work itself out as long as employment and inflation are manageable.

The QE programs were never meant to bail out the government. They were meant to offload the bad debt banks took on during the sub-prime debacle. We invented money out of thin air so we could buy the bad mortgage-backed securities to keep the banking system solvent. That money in many cases made money as the government was able to work through those debts. Yes, we let the banks off the hook. No, there was never a better option. We might dislike the protracted recession we got, but it had nothing on the 25% unemployment rate of the Depression.

[smileyeagle1021]

However, those people are often unfamiliar with concepts that go along with that standard like sterilization of gold reserves and inability of gold standard countries to adjust prices quickly thus creating deep depressions.
.

Not to mention that the only way that gold can become a useable currency is if it becomes a fiat currency itself. Yes, we oppose so strongly to a fiat currency that we want to create a new one

[kaycivine]

It's not a question of being foolish or not. For some people, the Chicken Little dance makes a lot of money. If I buy up something like the Swiss Franc or actual gold AND can convince a number of people the US currency is going to collapse to the point that they try to bail out and buy into other assets, I can effectively make money (and not just a little bit) by buying the other asset first. Make no mistake, there are people who would love nothing better than to cause a panic. Without getting political, the collapse of the US fiat currency is the darling of the more Libertarian economic set that tend to be in love with the gold standard. However, those people are often unfamiliar with concepts that go along with that standard like sterilization of gold reserves and inability of gold standard countries to adjust prices quickly thus creating deep depressions.

.

Oooh. My bad >>
I guess, for some reason, I was thinking "fools" because a lot of people are posting that link with the whole attitude of "The Sky Is Falling!"

>> But I stand corrected. Sorry >>

[KabeRinnaul]

NaturalNews also isn't exactly the most reliable or rational source.

For example.

[BlaqueKatt]

NaturalNews also isn't exactly the most reliable or rational source.

yeah check the "About section" run by one guy and funded by a Korean company, their "source" for the article just as bad

Espousing Conservative viewpoints, cornerstone of which contain love of God, love of family, love of country, CFP's main ongoing inspiration is to provide stories for a loyal readership that are not printed or posted elsewhere.

note nothing about "facts" or factual stories.

[wolfie]

However, those people are often unfamiliar with concepts that go along with that standard like sterilization of gold reserves

That's a term I've never run across - what does it mean to sterilize the gold reserves? I assume it has nothing do do with the biological sense of the word (as in surgical tools being sterilized).

[Rapscallion]

Oh, those wankers.

One of our customers phoned up concerned about an article on that site. I could see why they would be concerned, but a little digging and thought made me suggest to colleagues that the author was a racist, xenophobic wanker who was trying to shill his own goods by talking down (inaccurately) other peoples' wares.

The site is not one I'd trust.

Rapscallion

[lordlundar]

NaturalNews also isn't exactly the most reliable or rational source.

For example.

Oh good lord my "conspiracy nut" alarm hadn't gone off so much since the "truther" fiasco.

[kaycivine]

Oops, I feel silly now.

[Aethian]

Oops, I feel silly now.

It happens. Sometimes these sites are done well enough to fool even the experts. At least you asked before assuming and passing it about willy nilly.

[HYHYBT]

It happens. Sometimes these sites are done well enough to fool even the experts. At least you asked before assuming and passing it about willy nilly.

Still, if the premise of the article is "a global conspiracy is about to take over," which is the case here, you can pretty safely assume it's garbage.