Couple of interesting reads...http://www.mmnews.de/index.php/english- ... double-diphttp://www.jsmineset.com/2011/11/14/key ... alf-field/
Nothing is set in stone with this financial system as there always seems to be debate on how best to rectify the latest problem that the market crops up.
Re: The dollar. The most interesting thing for me is what the hell China is going to do with all the Forex $s it's holding if the dollar is not longer the currency of choice as the world reserve currency. It's a chicken and egg situation if you ask me, but I don't know enough about it.
Was actually wanting to start a thread about the GFC (Global Financial Crisis.... or as I prefer, Global Financial Collapse).
Buying gold is definitely a good insurance policy as eventually this stupid 'debt to create credit' fiat monetary system is going to fail and there is an opinion that when it fails the only solution will be to peg the monetary value back to something solid/real (like it used to be pre 1971' Nixon) like gold or silver, much like it used to be. I mean, they are going to need something to back any 'new' money they will print with something. And as that second article shows there is massive interest to be gain from gold, despite it's already massive price rises.
Been reports that a lot of countries have been shipping in their gold stock which has normally been stored in other countries. Greece's latest bailout had some small print in it that states that the money is secured against Greece's gold reserves. Make of that what you will. Libya was another country absolutely minted in gold.
One thing I would say is that if you do end up investing in gold. What good is a bit of paper saying you own the gold. If it all goes to pan then how you gonna actually get hold of your gold? You think anyone will send it to you when there's chaos on the streets after all the inevitable runs on the banks once people figure out whats going on.
The GFC sure is an interesting proposition and is shaping up to be a game changing event for our civilisation. Since reading up on some the things going on I've read a lot of speculation about how such a devaluing of their currency eventually led to the fall of the Roman empire, essentially the Roman's kept putting less and less precious metals into their coins, to a point where people refused to accept it as currency. In this fiat system we've got now, the analogy is endlessly printing money which has the same effect.
It's my opinion most of this could have been avoided if we'd have let the banks fail in 2007/8 instead of lumber the banks debts onto governments.
My mate sent me this too which shows just how stupid this system we've created is. Although you have to admit the policy has lead to our generation living through some serious liberalisations and technological advances. Well, at least in the western world with out cosy central heating and laptops and surf forecasts. http://www.youtube.com/watch?v=Dc3sKwwAaCU
I've been lurking around this blog for a while. http://www.zerohedge.com/
can't decide if they are giving an honest assessment or are nut jobs. They seem more knowledgable than me by far and I can't keep up with all these stupid new terminology such as 'haircuts' CCDs CDSs rehypothecation and the like. I met an economics lecturer in GC and said all his students read that site, but also gave a little chuckle. So not sure if he considered it a well researched site. (As I understand it, there are lots of 'Tyler Durdens'/writers - much like the film). One thing the proff. did say was that if the stock market was as heavily policed as the gambling market then there would be a lot of arrests. But essentially the system runs on insider trading now, which is why IMO it's not really worth investing in stocks for the long term now. And why gold, silver and oil futures as seen as good investments.
Written too much. Would be great to hear some other opinions on all of this though and if anyone else has got any blogs/articles/info to share would love to hear it.
EDIT - will have a look at those thanks. And yes, if it fails, it seems the system is so interwoven that it will bring the whole thing down. Globalisation at it finest.