Libertarian's Forum
Libertarian Forum to discuss politics and free market economics.
Libertarian's ForumLibertarian's ForumFreedom Forum › Trade and Currency Wars: There Will Be Blood
Page Index Toggle Pages: [1] 2 3  Send TopicPrint
Hot Topic (More than 10 Replies) Trade and Currency Wars: There Will Be Blood (Read 256 times)
BobK71
Libertarian Freedom Member
*****
Offline

Libertarian's Forum

Posts: 899
Joined: Jun 12th, 2015
Trade and Currency Wars: There Will Be Blood
Aug 13th, 2019 at 11:37am
Print Post  
In a nutshell, what has been happening between the US and China is as simple as this.

While both the US and Chinese elites enjoyed the fruits of financial leverage and its natural twin, lopsided trade, in the 90s, the two are increasingly at odds with each other over who should pay the price for the resulting financial imbalance, built up over the decades.

That's really it.  Forget what arguments float around the mainstream media.  When the elites of the world's two big economies co-operated, it was 'the Great Moderation' and 'the Goldilocks economy.'  When this alliance of tectonic proportions is fundamentally fractured, well, we know we got a Great Depression and a couple of world wars after the last one.

(Friendly advice is to watch the USD/CNY exchange rate.  In this situation, every country has overwhelming incentives to devalue.  But if all countries devalue, fiat money as a whole loses, and elites in all countries lose.  So the US has to hold a line in the sand, globally.  It's not easy!)

The ultimate culprit, as always, is the money system.  When the system is in good shape, it rewards the *current* crop of elites for financial inflation and imbalance.  Problems thereby are left to the next crops, who will try desperately to patch things up for their time.  But this very act makes things even worse for the next crop.  At some point, the system has to reset.  With nuclear weapons in abundance, it can no longer reset in WW1/WW2 style.  Only time will tell what actually will happen.
  
Back to top
 
IP Logged
 
SkyChief
Libertarian Freedom Member
*****
Online

Libertarian's Forum

Posts: 10897
Location: California Coast
Joined: Aug 18th, 2014
Re: Trade and Currency Wars: There Will Be Blood
Reply #1 - Aug 13th, 2019 at 12:00pm
Print Post  
BobK71 wrote on Aug 13th, 2019 at 11:37am:
  At some point, the system has to reset. . .  

Yep.

Better have some physical silver &/or gold in the safe or in a cache.

Federal Reserve Notes will become worthless, and all the ones and zeroes in the cloud will be worth even less.

Remember what happened in Zimbabwe? 

They inflated their currency out of existence.  They printed 100 Trillion Dollar notes!   Shocked



They eventually adopted the US Dollar as currency!   Grin

"A dollar is a receipt for a claim check on an IOU." - Mike Maloney
  
Back to top
 
IP Logged
 
SkyChief
Libertarian Freedom Member
*****
Online

Libertarian's Forum

Posts: 10897
Location: California Coast
Joined: Aug 18th, 2014
Re: Trade and Currency Wars: There Will Be Blood
Reply #2 - Aug 14th, 2019 at 2:45pm
Print Post  
BREAKING NEWS

Stocks plummeted today - Dow Jones closed down 800 points. (2.9% loss)

Gold and Silver prices shot up as yield-curve inversion triggered recession fears.  Savvy investors run to metals when the Markets become volatile.

Also, the yield on 30-year Treasurys also fell to a new low, compounding concerns of a recession.

Today's  Gold-to-silver ratio is 88:1, so silver is the best bargain.

https://markets.businessinsider.com/news/stocks/stock-market-today-yield-curve-i...

For reference, the Stock Market Crash of 2008 began when the DJI fell 777 points in one day.
« Last Edit: Aug 14th, 2019 at 4:28pm by SkyChief »  
Back to top
 
IP Logged
 
Industry
Libertarians Full Member
***
Offline

Libertarian's Forum

Posts: 126
Joined: Jun 14th, 2019
Re: Trade and Currency Wars: There Will Be Blood
Reply #3 - Aug 14th, 2019 at 3:05pm
Print Post  
haha someone plz post a picture of dr evil look sad cause a mil is not as much as he thought it was
  
Back to top
 
IP Logged
 
Jacob
Libertarians Full Member
***
Offline

Libertarian's Forum

Posts: 173
Joined: Aug 3rd, 2019
Re: Trade and Currency Wars: There Will Be Blood
Reply #4 - Aug 14th, 2019 at 3:42pm
Print Post  
EVERYBODY PANIC! Grin
  
Back to top
 
IP Logged
 
SkyChief
Libertarian Freedom Member
*****
Online

Libertarian's Forum

Posts: 10897
Location: California Coast
Joined: Aug 18th, 2014
Re: Trade and Currency Wars: There Will Be Blood
Reply #5 - Aug 14th, 2019 at 3:48pm
Print Post  
Jacob wrote on Aug 14th, 2019 at 3:42pm:
EVERYBODY PANIC! Grin

No need to panic. 

But maybe it's time to think about diversifying your portfolio with precious metals.

Precious metals are immune to wild Market volatility or Inflation.

Smiley
  
Back to top
 
IP Logged
 
yamcha
Libertarian Freedom Member
*****
Offline

Libertarian's Forum

Posts: 644
Location: Southern California
Joined: Jul 5th, 2019
Re: Trade and Currency Wars: There Will Be Blood
Reply #6 - Aug 15th, 2019 at 4:45am
Print Post  
Precious metals are good but not immune.  I invest in 3rd world properties and not lost a single penny even in the worst of deals.  Real estate in developing countries does seem to become more antifragile as inflation rises but this market is too dependant on having a government that remains predictable.
  
Back to top
 
IP Logged
 
Jeff
Libertarian Freedom Member
*****
Offline

Libertarian's Forum

Posts: 45089
Location: USA
Joined: Feb 26th, 2014
Re: Trade and Currency Wars: There Will Be Blood
Reply #7 - Aug 15th, 2019 at 6:51am
Print Post  
yamcha wrote on Aug 15th, 2019 at 4:45am:
Precious metals are good but not immune.  I invest in 3rd world properties and not lost a single penny even in the worst of deals.  Real estate in developing countries does seem to become more antifragile as inflation rises but this market is too dependant on having a government that remains predictable.
You think third world governments are predictable?
  

"Free hate speech"
Back to top
 
IP Logged
 
SkyChief
Libertarian Freedom Member
*****
Online

Libertarian's Forum

Posts: 10897
Location: California Coast
Joined: Aug 18th, 2014
Re: Trade and Currency Wars: There Will Be Blood
Reply #8 - Aug 15th, 2019 at 10:02am
Print Post  
yamcha wrote on Aug 15th, 2019 at 4:45am:
Precious metals are good but not immune. . .

Where ever did you get this idea?  Precious metals are absolutely immune to market fluctuations and inflation.

The price of precious metals may change with market fluctuations and inflation, but the purchasing power does not.

The purchasing power of gold and silver has remained (essentially) constant for 2000 years -  that's why they were used to coin money.

In Caesar's time, a tailored officer's uniform cost an ounce of gold.    Today , a fine 3-piece Armani suit costs around $1500.  (One ounce of gold).
  
Back to top
 
IP Logged
 
yamcha
Libertarian Freedom Member
*****
Offline

Libertarian's Forum

Posts: 644
Location: Southern California
Joined: Jul 5th, 2019
Re: Trade and Currency Wars: There Will Be Blood
Reply #9 - Aug 15th, 2019 at 10:25am
Print Post  
SkyChief wrote on Aug 15th, 2019 at 10:02am:
Where ever did you get this idea?  Precious metals are absolutely immune to market fluctuations and inflation.

The price of precious metals may change with market fluctuations and inflation, but the purchasing power does not.

The purchasing power of gold and silver has remained (essentially) constant for 2000 years -  that's why they were used to coin money.

In Caesar's time, a tailored officer's uniform cost an ounce of gold.    Today , a fine 3-piece Armani suit costs around $1500.  (One ounce of gold).



Chief,
You aren't actually talking about buying good and hiding it in a safety deposit box or under your bed, are you?  I thought you meant trading futures and options in the commodities market!

Well, It can get stolen if not stored somewhere safe enough. Paying sales tax and shipping for them when you buy them, as well as sacrificing space to store them and paying to secure them after you have them cuts into any profit you make when you sell them, if you manage to sell them for a profit (and the IRS will tax your profit).

Precious metals are not really an investment because they don’t have the rewards for the risk that you get with bonds and stocks. You run the risk of not meeting your financial goals because you devoted too much of your portfolio to precious metals instead of interest-bearing investments for a long time. If you’re willing to tie up your money in gold and platinum for 20 years, you could’ve bought series ee bonds that double in value after they reach maturity and don’t come with the extra costs. Stocks would also be a better choice in the long run.

In theory, if the apocalypse comes and world currencies all collapse, then you could use precious metals as money and you’d need a lot to get by until things return to normal. I think this is unlikely to happen in reality and if things got that bad in the USA you’d need guns, lots of ammo, and people you can trust more than precious metals. If they’re a fairly small percentage of your portfolio then they’re not very risky. If that’s all you have and you have important goals then it’s risky.
  
Back to top
 
IP Logged
 
Page Index Toggle Pages: [1] 2 3 
Send TopicPrint
 
Libertarian's ForumLibertarian's ForumFreedom Forum › Trade and Currency Wars: There Will Be Blood
Libertarian's Forum

Libertarian's Forum Information Rules, Agreement and Privacy Policy