⌛ Peso continues to fall

gdp chart attached

 

What is happening in the US and vibrating around the globe seems to me to be a resounding failure of "Reganomics" or at least the brand that our more "conservative" party has been advocating for the last twenty-five years and full throttle for the last eight. While the US government could not possibly want to own our banks fully, taking a stake in them until things cool down as a stock holder makes sense and does not make me scream socialism.

Right now with an important presidential election in progress economic theories and rational debate are being reduced to sound bites and slogans all the better to get the point across to "Joe Sixpack" who is not saving any money in any bank and could care less about the rest of the world as long as it is not marching on his property.

It seems this proposed Bailout is only going to work for those "bailing out" and probably do nothing for those on for the ride. One of the proposals getting lots of media attention is the one to up the FDIC rate of savings account protection from $100,000 to $250,000 per account. If we have not been a nation of savers as has been a constant criticism of the US regarding our savings habits, what is that going to solve? I think the current administration and its advisors are really trying to put a positive spin on this economic crises they had a big hand in creating. Trickle down of nothing is nothing. Its time to make the big boys pay or kick them off the train. I think it is going to take a while for this market to correct itself.

I cant wait for the US markets to open back up on Tuesday. Economics is an interesting subject again.

 

Protect yourselves some ideas for you.

If you watch the interest rates of banks around the world, you can generally predict which currencies are going to be increasing in value, relative to other currencies. For example, if you take a loan out in the US that charges you 5.25% interest, and buy a Turkish government bond paying 16% interest, you will make about 11% in profits each year. When a lot of people do the same thing, the value of a currency (in this case, the Turkish lira) will, given enough time, usually move upward.

Moving your assets into other currencies is not the same as buying a mutual fund or stock that invests in another currency. Right now, when you own mutual funds or stocks, you are based in US dollars, regardless if you own a fund that invests in gold or the Euro, for example. However, if you move out of US dollars and into Japanese yen, you can own funds that invest in gold or the Euro, with your yen-based account. A yen-based account would not be directly exposed to US dollar inflation or the risk of a US dollar collapse.

International banks such as HSBC offer savings, checking, IRA and other types of accounts based in other currencies. HSBC even has multi-currency accounts that will allow you to automatically switch between many base currencies in your account as often as you like, though these accounts are only available through the Singapore and Hong Kong offices. US citizens don't need to be physically present to open these accounts. HSBC's Singapore-based multi-currency account requires a minimum of about US$2,000 to open it.

Buying gold and silver bullion (modern gold coins) is another option. You can have coins insured and mailed directly to your home or to your bank. The best way to store gold is in an offshore bank account, or a bolted-down and well-hidden vault in your home. Consider owning two vaults -- a hidden one that contains most of your bullion, and a second one that you can sacrifice if you are robbed.

Expect bullion dealers to charge about 4% in commissions. Metal prices change every day according to world market prices, so you won't find "fixed" bullion prices on the more competitive web sites. Compare commission costs and fees, instead. If you want to diversify even more, you can buy platinum coins.

Some people like the idea of investing in a gold-, silver- or platinum-based IRA. All you can ever possess in a precious metal IRA are precious metals through the IRA's trustee. You can't buy mutual funds or stocks in this kind of IRA. You can drive to the warehouse to take possession of the precious metals in your IRA, but if you want to transfer your IRA out of a precious metals IRA, it may take some time, and fees.

Here are some links to backup some of this discussion –

Multi Currency Savings Account | HSBC Singapore

Buying gold coins to preserve your wealth is a smart financial decision

 

Thanks guys for all the info, some of which is beyond my education level. If nothing else this forum shows how wide are the views on whats happening/might happen and why.

I am now back in Australia, and last night during the rise of the full moon, I killed a chicken and walked around my house twice clockwise and three times anti clockwise with it, speading feathers as I went. I now expect a significant increase in the value of the Austrlain dollar by mid next week.

 

Geez, good thing you aren't my financial advisor. The stock markets are tanking. What better place to put your money? The best buys are made when the market is down, not when it's at a peak.

I'm with Warren Buffet...

However, stocks are not the place to be when you are retired and relying on that money to be available in the short term. Many people are in that situation in this forum.

 

The USD and US Treasuries will be the final bubble. When it pops its TEOTWAWKI....

And it's GOING TO HAPPEN.

Prepare now.

 

The sky is falling....NOT!

Herbalizer,

How are you preparing yourself for the inevitable burst of USD???

Also, care to elaborate what happens if that does happen???

USD is at 48.18 pesos right now, are you out there buying Pesos?

 

interesting thought

atlargex do you think we will end up with a world currency? always interested in what you think I like you prospective on things. Gives me hope for the world.

 

As the price of oil goes down the dollar becomes stronger. The banks maybe financially sound right now but, in my humble opinion, we will go into a recession and be there for a year or so. This will bring down the price of oil because the demand will decrease for oil. I made the prediction that oil would go below $75 by Christmas and that the peso to the dollar would be at 50 to 1. So far, I am correct. This was like 3 months ago. I am now buying stocks similiar to Warren Buffett. I must admit, I am not a professional financial person this just my humble opinion but so far so good!

 

Teacher...

We already have a world currency, USD....I don't know of a country that won't accept USD, not even Iran, N Korea, Venezuela, or Cuba. USD will continue to be the preferred currency internationally until such time that US treasuries are no longer considered being the most credit worthy. I've recently become bullish on US stocks as they've not been this cheap since the 80's & anxious to buy more mutual funds---I'm waiting for market volatility to narrow before making my move---I don't have the stomach for wild rides...Warren Buffet's got more balls than I do as he's starting to buy lots large cap US equities now.