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The History Of Global Crises Through The Eyes Of The US Dollar
Which is better: a stronger dollar or a weaker dollar? You decide...
"King Dollar" met Queen Caterpillar this week and awoke the beast of broken narratives that a strong dollar may not be the 'unambiguously good' thing so many proclaim it to be. However, with the rest of the world competitively weakening their currencies (in order to 'help' their economies), we hope the chart above will help readers decide which they prefer... a stronger (US multinational-crushing) dollar or a weak (domestic drag) dollar?
h/t Liz
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First of all, the "dollar" is long dead, which really makes this "analysis" rather pointless.
Root for the fuckin' bread lines!
Notice how in previous "downtrends" the Fed actually tightened.
This time is different in that all fiat will die.
Talk about crises.... O'PJ's buddies in their religion of peace, Praise Allah, have sent him a warm greeting message
http://freebeacon.com/national-security/islamic-state-threatens-to-behea...
Not very gracious guests, huh?.....
http://freebeacon.com/national-security/muslim-brotherhood-leaders-hoste...
This would not be the first time the MIC/CIA asassinated a sitting president.
This should not surprise you knuckles.
'Nuffin' surprises me, my brother.
I simply stand in awe and wonder of our leadership. It never ceases to amaze me.
Just can't make this shit up.
It's become like a Bad Reality Program
No reason to be surprised that someone with the same mental capacity you have, who is put in charge, would make the same mistakes you and I might make.
The argument against large governments isn't etched in stone, it isn't written into poems, it isn't a monologue in a movie... It's what is punching you in the face every day when your elected leaders screw you to appease monied interests, or failing monied interests, their own political gain.
That's sedition, suggesting that our leadership has but the same mental capacity as myself.
In any case, let's get serious.....
http://www.nydailynews.com/sports/football/deflategate-update-soften-12-...
Remember back in 2010, 2011, 2012 all of these alternative media talking heads were claiming the USD collapse is imminent, buy silver and gold at peak prices, and "ride out this shit storm"?
Good thing I didn't follow their bogus predictions.
Listenin' to the folks here, you'd think that gold and silver never went down in price.
Fondling the shit isn't why I bought it. (I did it for tail risk protection)
They also told me that owning long bonds was a dumb assed bet... my long treasuries are up over 25% this last year. They said that they'd be worthless because the world was falling apart.
25% buys a lot of extra gold.
So be it
But on to the more important shit for the day....
http://www.x17online.com/2015/01/bruce_jenner_puffy_mouth_lip_injections...
"They also told me that owning long bonds was a dumb assed bet"
Congrats, your number came up on the roulette wheel. Just wait until the chips can't be cashed in anymore.
If you think these "markets" are anything but a rigged casino, you're wrong.
I just recently took a bunch of unsecured loans on credit cards with the 0% interest deals flying around EVERYWHERE (free money, bitchez!) and turned it to gold. Paid back as slowly as possible before interest starts to accrue.
Modern QE alchemy. If you bleed my savings, I'll find alternatives to game the bullshit going on. In the long run, I imagine this won't be a terrible idea.
Indeed. You got a banker's deal! Good on ya!
2002 was a good year to buy and 2010 was a good year to sell. I recall Eric Jancszen of the "alternative media" calling it pretty close to perfectly.
+1 Arrowflinger
When the talking heads were pushing buy, buy, buy back in 2010, 2011, it was the time to sell, sell, sell. The old joke of the shoeshine boy telling you about buying was the time to sell to him.
The 2000s decade was the absolute best for precious metals, but the beginning of 2010s decade was the perfect time to get out.
Whenever Zero Hedge or any other alternative outlet pushes something to buy, I will know its time to sell, and vice versa. That's why I like this bearish blog. I like this blog for different reasons than most.
From now until the other side of the reset it's ALWAYS time to buy precious metals whenever one can. It's not about investment. It's about retaining whatever wealth one has until such time as there is a worthwhile environment in which to invest again. No such environment exists today that I'm aware of.
It's interesting to realize that there are a good amount of people aware of and following this site, that don't realize we're smack dab in the middle of said shit storm.
Yea, I'm glad it's all fixed./sarc
http://www.youtube.com/watch?v=XQmBXEZEYtg
http://www.youtube.com/watch?v=YvwtALTL27w
Maybe just over-the-top propaganda instead of real "reality":
IS operative confesses to getting funds via US:
http://www.blacklistednews.com/Startling_revelations%3A_IS_operative_con...
Edit:
Sorry, that threaded so far down it didn't make sense. Point is that the threat to O is probably propaganda from the US MIC/CIA/etc. to push for moar 'security' BS.
They should sue them for using the term "dollar" as that is a specified amount of specie.
The actual dollar would be through the fucking roof by now.
pods
Stupidest post/chart ever to appear on ZH: 5 minutes of my time I can never recover.
ROFLMAO as the ZH peanut gallery rips it to shreds: priceless.
United States Dollar is an alias for Federal Reserve Note.
Specie becomes irrelevant when a magickal printing press is involved with an "intrinsic value" of all out nuclear world war three as its backing if the world no longer accepts it.
I have to disagree with yoiu on two points.
First, the dollar is not dead, it is dying. I cannot pay my mortgage, utilities, food and gasoline without it. That is reality, not what I or you wish for but what is. Death is sudden and thus will be for the for the dollar. Meanwhile, it is stillin dying status.
Secondly, the death of the dollar also opens the door for another fiat. Lookk how TPTB have tried to create one global currency. My fear is that that TPTB will take the technology of digital currency and make a global digital currency that they control and force us all to use. And just because it is digital, doesn't mean it isn't fiat. It will be misused and manipulated like every other currency.
Depends how it is implemented.
Short of the NSA using their supercomputers (or quantum comps) to mine BitCoin, you can't induce inflation beyond that which the current mining computing pool is providing. And even if they do, there is a finite limit to BTC creation, not to mention exponential scaling in difficulty of mining may have even the NSA (without quantum) reach diminishing returns after an initial burst of BTC mining.
Fail. Don't know the diffference between a FRN and a dollar do ya? Sad. Oh well, "full faith and credit"...
same as it ever was.
I heard that the lines already over 100m long.....whats the wait time?
Rips
My best friend's gay yoga instructor's cousin makes $8,967 a week waiting in bread lines for other people, just like the people who get paid to wait in line for toilet paper in Venezuela:
http://www.zerohedge.com/news/2015-01-27/new-venezuelan-entrepreneur-mak...
"I need TP for my bunghole, amigo!"
I know that Yoga instructor! His name is Cornholio, and he is Great.
pods
Looks liike cornhole is the new tongue punch her fart box
Keep a tight one while you're doing the downward dipping dog!
arf,arf
Modern day bread lines form in the groceries at the cash registers....you do not even notice them.
I will never forget once when checking out in line I had my new, Amerikan flag Discover card to pay (back when I used credit). The Mexican in front of me had one too. Same flag on the card at least. Well she was having trouble running the card and it turns out it was her EBT card, not a Discover card.
They are right there, hiding in plain site.
pods
Yep....
I mentioned that to some of my buds a few years ago and their eyes lit up. They got it!
Had theretofore not made the connection
I did not see the "Great Bankster Lynchings" on the timeline.
Has that not happened yet?
I dont get so excited by bankster lunchings. For every 1 bankster lynched or killed, probably 1 million serfs will get killed. It is always the serfs that really pay.
I vote for NO dollar.
The dollar is a piece of paper.
RIPS
I prefer the SILVER dollar. The Morgan type...though I'll take the Peace dollar too. And if you happen to have some of the older trade dollars, we can really talk.
True story- four years ago I bought a 5' x 8' trailer for $13. Of course it was thirteen Peace dollars...
I like silver dollars too. Unfortunately more sheeple I do business with know what a Square is, than know what a silver dollar is.
Under Menger's definitions of money, the fiat 1s and 0s are "money" but the silver dollar no longer is.
Fiat 1s and 0s are readily accepted by the masses, and the silver dollar needs to be sold to a coin shop for fiat 1s and 0s to complete the trade.
Yes, but for some reason, gold is still the preferred collateral and asset of all central banks.
That which cannot be sustained, won't be. Long term versus short term thinking etc. Interesting times indeed.
No risk, no reward motherfuckers!!!
Don't confuse the "piece of paper" with what it represents, who owns it, and what might is backing it.
Clarity, my friend, clarity. And focus.
The very nature of the USD/FRN system of fiat & FRB forces VOM or Growth, or some of both. The Debt Balloon must remain inflated or keep inflating, until it pops.
Spoilers with pins (to pop that Debt Balloon) are kept at bay at all costs, as geopolitics, media control and market manipulations are demonstrating, given that a Global Reserved Currency requires global injection of 'Air' for said Balloon of Debt and Debt-Servitude.
No Dollar is the best
I want a stweak dollar so I can to continue to buy my cake and eat it too.
Who cares, we just need MOAR DUHllors! - Yellen
Weak dollar, strong dollar....can't it just be consistant? Of course not, how else would they fleece us and the world....
Correlation does not equal causation
I prefer the "0" thanks.
EDIT: The graph is kinda funny. "US Debt downgrade" is shown at a dollar bottom.
looks like it doesn't matter. econ is too complex to show only one variable....isn't that pretty much how the fed looks at things?
Econ is a social science, moreover, you cannot evaluate any economy that uses a monetary system that is not attached to anything REAL. Mark to model forever (i.e. mark to fantasy).
"Zombie Krugman" is on his way over to your place to eat your brain.
Way back about 3 centuries ago when I was studying in the UK, they'd just coined the term "social sciences" as applied to sociology, economics and the like.
I've always thought that my advanced degree in Economics was nothing whatsoever a "science".
Fuckin'-A, most science today ain't even science. It's political sophistry and pablum Crap-O-Plenty
Try talking to a CA state university science graduate about Quantum Mechanics. They'll be telling you that you need to get updated for the black holes, limitations on travel faster than the speed of light, the big bang and a whole lot of other fucking downright nonsense.
And then we all got fucks like Krugman telling folks who listen that economics is a science.
Makes my nuts shrivel as I wonder about the sustainability of the human condition
I see a lot of bubbles and crisis caused by the fed's tinkering. If only there was something barbaric we could tether the dollar to for stabiliteeee.....
yeah, but they jerk with the value of gold, too.
there's nothing these douches haven't fucked with.
They can only jerk with the value of gold when measured against paper. Over the long term gold's buying power hasn't changed.
Price is not value.
Capt. Bart Mancuso: How did you know that his next turn would be to starboard?
Jack Ryan: I didn't. I had a 50/50 chance. I needed a break. Sorry.
Capt. Bart Mancuso: That's all right, Mr Ryan. My Morse is so rusty, I could be sending him dimensions on Playmate of the Month.
Notice how at the beginning of the ponzi. It was easy to tighten. It was easy to kick can. Time was on their side.
Now the end of the ponzi. These are much much harder to do. We shall see if , impossible to do.
I vote 'New Dollar'. This one is getting old and really ugly.
Can we have Dear Leader Obama's picture on it? Please, oh please, oh please?
Your racism is showing. You need to check your white privilege!
At least we all can be assured that the Obama Dollar will be 100% 'backed' by Reggie Love...
What I see in that chart is that the world is fucked up no matter what happens with the dollar.
Which is better: a stronger dollar or a weaker dollar? You decide...
Good news is that champagne will always be champagne whatever the price.
Bad news is it doesn't really matter anymore considering where we are now and how we got here...
So enjoy whatever is left in your glass and wine cellar!
The Dollar is as good as gold. In fact, it's better than gold. Why don't you people shut your mouths and let our leaders handle this? I might be a conservative but even I know that President Obama has "got this". The USA is number one and the troops are out there fighting for our freedom to live with the greatest government ever.
The USA is number one and the troops are out there fighting for our freedom to live with the greatest government ever.
You've got to be kidding me! Right?!!!
Even paid trolls in the Federal government don't come out swinging like this anymore?!!!
He's got that PsyOp, False Narrtive, Propaganda Script down to a T.
I can hear the swish of your red, white, and blue pom poms. All kidding aside- this is sarcasm, right?!
I remember my first beer....although it did not make me a pin wheeling bozo....
Switch to O-Douls...like Dubya....yer boy.
Fight club has got ya all wee weed up? Good we need more cannon fodder.
"I knew MDB, and you sir are no MDB".
Channeling MDB much?
Gold is the Currency of Kings
Silver is the Currency of Gentlemen
Barter is the Currency of Peasants
Pussy is the Currency of Women
Debt is the Currency of Slaves
Criminal Banksters / Politicians are you listening? Do I have your attention?
Guns are / is the Currency of Patriots.
It's settled, then.
I will barter my "Romney" yard signs for pussy.
I think you meant 'lead is the currency of Patriots.'
If so, I am a rich man. I won't be trading my guns for anything, but I can see several scenarios where I am giving my lead away one hot piece at a time.
Deleted; duplicate of "Reply" at 13:56 (or someone is hacking my account).
“Guns are/is the Currency of Patriots”
This is only part of the formula.
If you stand alone, you lose; if you combine your efforts with others of like mind, you improve your chances of survival significantly.
I think most of us agree that current murderous political systems are unsustainable. The American system, for example, is based on a currency that is issued IN EXCHANGE for US Treasuries (directly or indirectly). The problem here is that government debt is the process by which a generation of tax consumers financially cannibalizes following generations of tax payers. There is enough such debt on the books to cannibalize following generations of Americans to the end of time (based on assumptions, data, and formulas provided in Financial Reports of the US Government).
It, naturally raises the question, ‘What happens to a society that eats its children?’ Well, for one thing, it can’t survive; and for another, it doesn’t deserve to survive.
There is nothing that can be done to save the American nation; we should, however, save ideals won/confirmed by the American Revolution.
If we are to do that, we have to protect ourselves from that large fraction of Americans who are effectively brain dead. And the main thing you need to know about them is that they will die, or kill, rather than correct their self-destructive habits. These people control instruments of power across the globe; as far as they are concerned, if destruction of civilized society is necessary to secure rule by thieves… if extermination of productive and thrifty classes is necessary, it shall be done.
And the problem, from our perspective, is, ‘How do we protect ourselves from their murderous political system?’ How, for example, do we protect our property (from physical gold, to businesses, to stocks and bonds (domestic and foreign)) from seizure by the Department of Homeland Security (DHS)?
By the act of Congress that established the DHS a system was created by which informers could make false allegations against anyone they please with near-total impunity. Of course, such informers aren’t described as informers; rather they are given the title “submitting person” and their falsehoods will never be examined by any court or legislature or law enforcement agency. The legislation even specifies how this immunity is obtained. The “submitting person” only has to give an “express statement” that his lies were “voluntarily given” and that he expected “protection from disclosure”. It’s all there, in the act that created the DHS.
I’m sorry guys, but silly season is over. Even if you own physical gold, live in a cabin in the woods along with a stash of ammo and AK-47’s, you lose. If you don’t fall to the horde of hungry homeless, you will fall to DHS death squads. All the homeless have to do is to wait until you collapse from lack of sleep (24, 48, 72 hours), then they march in, slit your throat and… let your imagination run wild.
If you own stocks or bonds, guess what: you’re depending on criminal and useless classes to deliver your purchasing power at the moment of their greatest victory. Did I mention something about ‘silly season’?
If you want to survive, you have to combine with others of like mind for the purpose of mutual protection, among other purposes. The big question now is, ‘HOW is this to be done?’ And the quick answer is, ‘You must establish First-Amendment assemblies – the only historically-proven method by which men have made their lives and property secure from rule by thieves.’
The American Revolution, for example, was powered by a large network of such assemblies: from town meetings, county meetings, state conventions and, ultimately, to Continental Congresses.
Let’s be realistic: this solution won’t be easy or quick… unprecedented adventures never are.
I'll take door number 2 - GTFO b4 TSHTF
DHS death squads? And how would TPTB be paying those death squads? In the collapsed fiat currency? I'm sure they'll show up to work for THAT...
C'mon...you don't seriously believe that there'd be enough loyal 'death squads' to control 300+ million people, do you?
We'll get maybe two weeks of attempts before the whole thing dissolves, as the agents start failing to show up for work, deserting, etc...
You give these folks too much credit. I'm not at all impressed by their 'death squads'...they're as real as their fiat currency.
Of course they won’t use native assassins
for their death squads; they’ve had enough experience to know native assassins become useless after 2-5 killings.
Instead, they’ll use cutthroats recruited from the ALLIANCE, as I have named it.
Shortly after Red China took possession of the Panama Canal, they cobbled together Mexican and Columbian drug cartels, Chinese Triads, Red Army and several other world criminal orgs; all with the cooperation of the American Department of Justice, Congress, DEA, FBI and a few other agencies.
So why did they do this?
Do you really suppose they organized this ALLIANCE so members of it can perform at half-time during the Super Bowl.
C’mon, get real.
My life as a sine wave.
For me..I am always on the very edge of the Bell curve....the outlier
The only strong dollar is a dollar linked to the Pm's. Everything else is makebelieve and needs to go.
Strong Dollar. Cheaper goods and precious metals.
The conclusion from the graph is that ANY dollar leads to a bad outcome. Dissolve the FED. Return control of money to the people
If your exports depend on having toilet paper as currency, I think you're doing it wrong. Ask a refund for your (overpriced) MBA.
If what we are seeing today were a real crisis, then gold would be much higher.
This pretty much tells it all
http://www.wsj.com/articles/strong-dollar-hangs-over-more-companies-ratt...
It's pretty obvious by the chart, that traders run to the dollar in the early stages leading up to each collapse... Then the $usd tanks and people run to PM's. as the meltdown hits U.S. shores.
Show me one event on that chart where the $usd continued to strengthen when the crisis became full blown? Every event was followed by $usd weakening, excluding the events that originated in the U.S. which saw immediate $usd selloffs.
The long $ trade is going to get smashed, because it's so (1) sided.
This entire charade has been going on for decades, the Federal Reserve calls it bubbles. They're now adults still whacking off in the bath tub shooting down soap bubbles.
I just read earlier this week that the BoJ is thinking about going to negative yields on their bonds instead of printing more money, in order to keep the ¥ from strengthening.
The Japanese insurers and KAMPO now have net outflows in the JGB market. Get ready for negative rates in the U.S. if the Fed. can't monetize a sizeable chunk of debt.
At some point one of these currencies or bond markets is going to implode and tear the whole house of cards down with it.
Just let them proceed. It's called, fight or flight mode. Desperation is the new cologne to mask fear. I still wear Chrome cologne. No joking.
I’m gandering that a few illusional high profile fuck sticks are in a phase of fear. Allow me to provide you with some soothing music before your shitstorm begins. I have first bid on your house in Brussels under bank owned short sale auction. I promise to hire you by looking over the plantation grounds. No need to hire a house inspection, you know best.
Arcana `Cantar De Procella` Live at the Stereo, York
FLOTUS winning friends and influencing people
https://celebrity.yahoo.com/news/michelle-obama-not-amused-while-meeting...
The USD is strengthening because it is the prime currency for leveraged carry trade in all the commodities, equities, currencies and bond markets. As the volatility and losses increase traders rush to buy the funding currency to repay the loans. Hence the positions in various markets are being unwound and money is flowing towards the USD. It has very little to do with the actual strengths of the economies involved and got more to do with speculative positions outstanding.
http://www.marketoracle.co.uk/Article40231.html
The USD is going to tank when traders realize the Fed. is going never raise rates... Then it's going to crash when the Fed. resumes printing or goes to negative yields.
The "Dollar" is a "measure" of a piece of "paper".
You can navigate between the peaks by doing QE and then doing Tapering. Then we won't have any crisises anymore.
Where the hell did I hide my bong?
You mailed it to President Obama.
Now some loafer at the USPS has it.
bongs are so 70's
The strong Dollar will crumple the global debt bubble. It's what we need now. To hell with our multinationals. Those who are strong enough to survive WILL survive. This is evolution. Let the Dollar appreciate; and let deflation run wild.
The Federal Reserve fiat counterfeiting ring has reached its peak ROI journal entry.
The porridge cannot be too hot or too cold. It must be just right.
The dollar functions best when it 'blends in' with other currencies, not standing out at the high or low end.
But then, all fiat currencies CAN work, and work quite well, IF they are handled by responsible persons. The problem is, those persons don't exist. We haven't 'evolved' enough yet to be trusted with the powers a fiat currency can give. The temptation for self-enrichment is just too great for ANY human being to handle.
This is why we need a gold-backed currency. Yes, it restricts growth, sometimes sharply. But that is what we NEED, since we are unable to exercise the discipline ourselves. A good, solid 'anchor' on our currency may keep us from making much progress, but at least we won't be blown completely off-course and lost at sea. And we can use the down-time to really LEARN how to sail the fucking ship...then maybe we won't NEED the anchor anymore.
But right now we DO.
Bemused Observer
I'm afraid the Goldilocks currency you want won't have gold backing. I hope that's okay.
Gold backing == redeemable for gold
Redeemable for gold == take dollars to the Fed and trade them in for gold.
Your dollars == M2 (orM3) == $15 to $20 trillion.
Gold backed dollar == run on gold == end of gold backed dollar.
But it was nice while it lasted. Standing in that long line with all those nice people..
The Amero will save us from the US dollar crash just like how the Euro united and saved the European nations. Let everyone suffer equally!
My BLOG...
I prefer no manipulation of money and credit.
I wish I could weaken my currency to improve my economy. Oh wait, It has already happened (I just haven't noticed it yet)!!
I'm with Edison and Ford. Why not just issue US Notes instead of Fed Notes? Instead of selling bonds and paying the coupons, just issue bills backed by the "full faith and credit" of the US taxpayer and US assets. The same instrument that makes the bond good makes the note good, and we don't have to pay someone else to use our own money!! I think JFK tried this at one point................................