Friday, October 26, 2012

Silver prices and the dollar

Many nations are no longer using the US Dollar to do their transactions. The no longer chose to be bullied into doing what America wants them to do even concerning Iran. India is using gold to buy oil from Iran. China is also working out their own deals with Iran without using Dollars. South American nations, China and India are coming together without America to work together. If nations stop usng the dollar then I expect some to begin selling the un-needed dollars on the international market which could depress the value of the dollar. Interest rates are being kept low for 2 reasons that I can see. One is to allow people in America to refinance their homes which will also allow more home buying and alleviate the slump in home prices. It will also save people money when they refinance leaving more cash to buy other things. Higher interest rates also have to be paid to the national debt so if they go up the US would have a much bigger bill to pay. Eventually interest rates will go up and if they do, combined with the lower interest in the dollar, it could spell a large drop in the value of the dollar. If the US defaults on the debt the Elite will try to step in and control things claiming that we owe them a lot but perhaps they want to have America and other nations owe them so they will have power. People do not want these bankers and business men running America; they may lose out completely but America may have to start over again from scratch building a new economy. The most wealthy of the world are buying the debt of many nations hoping they will get control when they default. Most of the debt will never be paid back and there is no way it could be paid back unless the currency is devalued to next to nothing which is basically the same as not paying it back. If it is devalued those holding the currency will lose the value of the money they hold unless they get rid of their currency and buy land, silver or gold. This has to be done before interest rates begin to go up and before nations begin liquidating US dollars. I thnk this is a few years away but the fact that India and China are working out their own deals with each other and Iran is a sign not to be ignored. One way to disguise the drop in the dollar is to have oil go down in price. I do predict oil will go down in price significantly and not just for a month either. it will be a long term drop in price which will reduce the price of gas. Food will probably go up especially with the bad weather patterns but oil will go down to make up for some of it. Oil going down will disguise the drop in the dollar. Also lower interest rates will help people out in the real estate sector and working people will spend less on mortgages. These are quick fixes to repair the failing dollar, we will all appreciate them in coming months but years from now we still will have a huge debt that we cannot pay and the problem could come back to visit us in the future. It could come with a natural disaster or bad overseas news or time could just run out. I think 2015 to 2016 could be important years for the whole world.
    Gold and silver will be the antedotes to the collapsing currency systems and much money will flow into metals.  Any ETF that has real bars behind their stock will be good but some ETFs may or could fail. No portfolio should be without silver (and) or gold and no retirement account should be without it. People on government retirement should set aside some every month into metals-- not numismatic coins - but bullion. I recommend pre- 1964 dimes. Silver will outperform gold. I also recommend keeping some extra stock up food at home because when you see Americans fighting over the last X-box it is an indication how they would be if it was the last loaf of bread. I am not one of those who believe in the End of the world but unlike the Japanese America has a lot to learn about fear and spirituality- dispite there being a church on every corner we do not act like we know God. We will panic even on rumors. Have your necessities bought before hand. In the mean time enjoy the good economy before the storm.

No comments:

Post a Comment