Comments on: Lessons From A Dubai Default

By: UncoolSam

UncoolSam — Wed, 02 Dec 2009 05:43:39 +0000

@Todd

You said, “brave new [post-dollar] world,” whatever that will be.

I believe it is the new ‘Amero’. This will replace the collapsing dollar once Mexico, USA and Canada are merged into a supernation.

Just watch the first 20 seconds of this video and notice how USA/Mexico/Canada is all the SAME colour (1 country !!!).
http://news.sky.com/skynews/Home/Wor…vonne_Fletcher

All 3 countries will become NAFTA (North American Free Trade Agreement).

Notice how all of the other nations are merged into supernations !!

By: Greg

Greg — Wed, 02 Dec 2009 05:42:40 +0000

UncoolSam,
People like gold expert Jim Sinclair say we will not go to another fiat currency but to some sort of gold or commodity backed currency. The BRIC countries are talking about a Super Sovereign currency backed by gold, oil and other commodities, as a competitor to the dollar. If there is an Amero it will probably be backed by something. Sinclair thinks the U.S. dollar will have to be backed by gold someday. I guess we will have to wait and see. Thank you for your comment and the video!!!
Greg

By: Eric

Eric — Tue, 01 Dec 2009 01:18:05 +0000

Hi Greg,
so far people in charge were and are able to maintain the financial system going, and this can go on, theoratically for ever. However in practice this is not the case in your view what are the most likely events in order of posibilities (this of any kind of events)or signs of events that could or would trigger a meltdown

Regards
Eric Zurcher

By: Greg

Greg — Tue, 01 Dec 2009 01:16:41 +0000

Eric,
Someday soon this will pop. I hope you are ready for it. Thank you for the comment!!
Greg

By: Tom Paine

Tom Paine — Tue, 01 Dec 2009 01:15:21 +0000

This is just another example of what has been dubbed the “sky scraper indicator.” That is, every time a new world’s tallest building is built, it is fairly quickly followed by a financial meltdown in the building country.

Thanks for not being another cheer leader.

By: Greg

Greg — Tue, 01 Dec 2009 01:14:40 +0000

Tom,
Good comment…I did not know that!
Greg

By: Marshall

Marshall — Mon, 30 Nov 2009 16:15:45 +0000

Uhh, buying gold takes nothing out of the banking system. The person or organization that sells the gold gets dollars for it, and the person buying it gives dollars for it. The seller deposits the money, the purchaser withdraws the money. For the banking system it is 0 gain/loss game. It is no different than buying any other commodity.

Marshall

By: Greg

Greg — Mon, 30 Nov 2009 16:15:45 +0000

Marshal,
I disagree because the gold seller does not turn around and deposit the money. The coin store, for example, will take the money and pay salaries, expenses, take profit and buy more products to sell. The buyer will take the money out of a bank and therefore the bank will no longer have it to loan out. So buying precious metals is not a zero sum game. Thank you for your comment.
Greg

By: Todd

Todd — Mon, 30 Nov 2009 15:38:05 +0000

Yes you’re quite right, this whole thing is just picking up speed. Well I hope that the astute readers of this and other columns have shielded themselves with an aegis of precious metals. Years ago, I used to scoff at the end-of-the-roaders, but today, not so much.

I really think this whole collapse is being engineered. But I think that the model is Argentina, rather than Zimbabwe. I think the idea is to destroy dollar hegemony and move on to a “brave new [post-dollar] world,” whatever that will be.

Short-term, I wouldn’t be the LEAST bit surprised to see some sort of bank holiday(s) official dollar devaluation once or twice on our road to perdition here. But rest assured, there’s no pulling back from the precipice at this point — no way. The continuum I’m imagining runs from “really really bad” to “pretty much catastrophic”.

But I doubt if heads will roll! I think Americans will be too involved keeping body and soul together to worry about what punishment is meted out to whom. We’re in for a real nor’wester.

By: Greg

Greg — Mon, 30 Nov 2009 15:37:53 +0000

Todd,
Something big is going on that is for sure. I think all the signs are there that this crisis is getting worse. I hope people take the steps to protect themselves. Thank you for your comment and insight!
Greg