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View Full Version : "Dollar Currency Devaluation" wording being quickly cancelled out of the media.


SilverFinger
09-20-2010, 10:54 PM
Certain words should not be used....like an upcoming 50% currency devaluation, dollar devaluation. You'll be erased. Anyway...let's hear from Ron Paul...he has a great message...before it too gets erased.

http://www.youtube.com/watch?v=RhnQBuwo19g

SilverFinger: "We're living in the most spectacular financial times..billionaire gold-buying vigilantes actively pressurizing the market, strange fires and accidents at CFTC, massive 100x comex shorts, hindenburg omens 3x, talk of 50% over-night dollar devaluation. Is it business as usual? what do you think...how do you feel about this current information floating out there?"

Yield2Greatness
09-20-2010, 11:00 PM
"talk of 50% over-night dollar devaluation"

Anybody with fingerprints on this crime would get justice, sans, a trial.

Silver Dog
09-20-2010, 11:44 PM
Here is a comment posted on the video that I must completely agree.

"Americans will never get it until they understand the individual needs to reign supreme not the collective. As long as we have believe the greater good as a nobler cause than the freedom of the individual, our country will surely parish."

SilverFinger
09-21-2010, 09:10 AM
"talk of 50% over-night dollar devaluation"

Anybody with fingerprints on this crime would get justice, sans, a trial.

No, it's actually quite common in many countries...mexico does it all the time...and the U.S. can do it too...takes only 6 to 12 days to make it happen and this is without notifing the public...there's speculation that at the end of this year Dec 27 until Jan 7th...this kind of devaluation (re-valuation) thing will happen overnight and in the news the next morning (saturday morning after christmas at 6:00am there's a news flash...and store owners adjust prices before monday or shut down for a week to change prices on products, nobody is given advanced warning)...and no...nobody goes to jail it's planned and just happens overnight..fed wise or other. We need to wake up america that this kind of thing is very real indeed...just cause it never happened...and now there's talk of it everywhere...leakage.

FriedNietz
09-21-2010, 10:04 AM
Kill all the bankers, there's an app for that. http://www.dvorak.org/blog/2009/11/09/kill-all-the-bankers-theres-an-app-for-that/

RFID trumps
09-21-2010, 10:16 AM
Liesman just said Easing may begin in Nov. Economic bobbleheads on TV are talking easing, quantatatively speaking. Ahead of the Fed Announcement today LiesMan didst utter these things unto the masses. He supports them no matter what. He never cracks lip on them and is the "bad" cop to Santelli's "Good" cop dynamic duo. Santelli got his question in to the town hall meeting and it was addressed. The Feds sure do have a lot to speak about these days it seems, always bobble headin' about something, the inner dissention amongst how to deal with things, and elections in Nov coming up.
I remember the last QE buying and propping spree, now people may get to borrow from their great great great great grand kids and the money wont go to the banks this time, nope, the people will get some money in their pocket soon, easy money and tougher terms, or super duper sub prime lending will commence. Something is brewin' between now and Nov. I hear a lot of talk about lame ducks, but what are they going to do on their way out? They say pay backs a Beach....

Yield2Greatness
09-21-2010, 12:34 PM
No, it's actually quite common in many countries...mexico does it all the time...and the U.S. can do it too....

It's called robbery, and there are about 300 million people that would be pitch-fork mad as all hell. Personally, I'd be laughing my ass off and start to fondle my PMs.

Kir Janja
09-21-2010, 02:48 PM
Have we ever heard single viable scenario how exactly this supposed devaluation is going to happen?

RFID trumps
09-21-2010, 02:49 PM
Have we ever heard single viable scenario how exactly this supposed devaluation is going to happen?

I reckon' about the reverse of having China raise the Yuan...

Kir Janja
09-21-2010, 05:53 PM
I reckon' about the reverse of having China raise the Yuan...

Juan was pegged to USD not so long ago (so they could devalue or revalue it if/when they wanted). But what is the USD pegged to?

Blagio
09-21-2010, 10:02 PM
I would like to ask the talking bobble heads "how many ounces of gold do you own?" The blank stares would be priceless.

As for the OP... we are currently seeing devaluation. It's just not as sudden as a hyper-inflationary event. Look at your local grocery stores. Prices rose in 2008 when gas prices sky rocketed. Haven't gone back down have they? Food producers are pricing to make a living and cutting employees as well. You can only cut so many before you're the one turning the lights on when you arrive and off when you leave.

B

DenariiForMe
09-22-2010, 01:20 AM
Have we ever heard single viable scenario how exactly this supposed devaluation is going to happen?

Presumably as it happened in other countries...

There's plenty to read about Argentina online; it happened there relatively recently. The banks closed for a few days and, when they reopened, withdrawels were severely limited; meanwhile, the government had officially devalued the currency. People who didn't have hard assets or lots of cash in hand to immediately buy hard assets lost about 1/3 of their purchasing power instantly.

It get's more complicated for the U.S. because there is no obvious unit of value to devalue the dollar against, as it's the world reserve and fiat. In the case of Argentina, I believe - correct me if I'm wrong someone - that the currency was devalued against the dollar.

My supposition is that the dollar will not be formally devalued until an international currency (SDR's perhaps) is ready to take its place for purposes of international trade. At the moment the dollar system starts collapsing, the dollar will be devalued against the new currency, and that's that.

houseofthemoon
09-22-2010, 02:02 AM
They can create a law overnight that 3 of the old dollars is worth 1 of the new dollars. Has anybody noticed the recent discussion of creating new a style of (paper) U.S. dollars?

In Zimbabwe they went a few steps more and dropped 12 zeros(?) and said that the previous 100 trillion was worth 1 dollar. And of course soon after their currency collapsed. (And ironically they switched primarily to the U.S.D.)

Of course their more ultimate goal is to eliminate paper currency completely and make it all digital, this will provide the government with much more power in terms of taxation, tracking, ect...

Kir Janja
09-23-2010, 05:44 PM
IIRC, Argentinean peso was pegged to a dollar at (obviously unsustainable) 1:1 parity.

After the bank run and subsequent “bank holiday” the peg was removed and parity dropped to 4 peso for 1 dollar. If I am not mistaken, it wasn’t officially devalued, instead it was left to “float (http://www.investopedia.com/terms/f/floatingexchangerate.asp)” (or rather sink).

I suspect we have a lot confusion around here about the term devaluation (http://www.investopedia.com/terms/d/devaluation.asp)and that it is often being confused with depreciation (http://www.investopedia.com/terms/d/depreciation.asp) and redenomination (http://www.investopedia.com/terms/r/redenomination.asp.).

ingots
09-23-2010, 06:18 PM
http://www.forbes.com/2008/12/09/dollar-devaluation-gold-pf-ii-in_fb_1209soapbox_inl.html

when you first go here u get a stupid commercial aand have to click continue to site.

SilverFinger
09-23-2010, 07:37 PM
Have we ever heard single viable scenario how exactly this supposed devaluation is going to happen?

Oh, absolutely...it's all done behind closed doors...nobody knows anything until saturday morning of a long holiday weekend...then there's an emergnecy media news flash describing the resetting the currency devaluing...this long weekend gives time for merchants to re-tag their merchandise upward in price. You have to see it in action in Mexico...nobody goes to jail...it's all legal beagle...you can protest... but why...it's a done deal.

SilverFinger
09-23-2010, 07:41 PM
http://www.forbes.com/2008/12/09/dollar-devaluation-gold-pf-ii-in_fb_1209soapbox_inl.html

when you first go here u get a stupid commercial aand have to click continue to site.

Great article Ingots...thanks for posting...see... as quoted... "Currency devaluation proved effective in ending the Great Depression."

ingots
09-23-2010, 09:14 PM
i have a question about devaluation
if they devalue by say 50% and im thinking thats the amount they will

does rent food and everything else double? sorta seems unfair for everything to double as the prices of necessities dont devalue.

i mean if everything doubles how does that help the economy?

does our wages double? im sure they wont any insight into this would be much appreciated.

TedNugget
09-23-2010, 10:08 PM
"Have we ever heard single viable scenario how exactly this supposed devaluation is going to happen?"

==================

"Global Financial System shutdown 12/24/10 to 1/2/11.

Conversion $100 [old USD] per 1¶ [New bi-metalic backed USD].

Currency convertibility window 1/3/11 to 1/29/11.

US backed debt instruments convert upon maturity.

Annual Bi-Metallic rate fixes set during a 4th quarter G-20 meeting, with the first such monetary conference to be held on 11/11/11.

Rate fixes and Monetary Policy for year 2011 as follows:

Gold ¶1000/gram, Silver fix ¶50/gram.

Liquidation of all insolvent entities permitted.

Working Group on Financial Markets disbanded by first G20 meeting."

- - - - - - - - - - -

That's all anyone needs to know.

TedNugget
09-23-2010, 10:12 PM
You also need to know:

The dollar devaluation has to happen.

HAS TO !!

We have too much debt and this is the only way it has a chance of being lowered.

=======

BTW:

Other countries are not going to tolerate this.

TedNugget
09-23-2010, 10:16 PM
"if they devalue by say 50% and im thinking thats the amount they will

does rent food and everything else double? sorta seems unfair for everything to double as the prices of necessities dont devalue. "

- - - - - - - - - - -

To a degree, items made within the valuing country stay effectively the same price.
Sort of.
When the farmer has to pay more for whatever, prices will go up.
The farmer will have to pay more for fuel, foreign made parts and equipment.
Expect a run up in many prices and government prices controls to be put in place under Presidential orders.

============

If your stacking just gold you are not real bright.
Trading with something as valuable as gold may not be advisable.
Do you want your entire town knowing you have gold and silver coins and maybe more?

Got groceries?
Go visit the survival threads because you now are concerned about devaluation.

Carpenter
09-23-2010, 10:32 PM
If 80% of US dollars are held overseas, wouldn't those holding that 80% be more affected by a devaluation than the US itself?

I don't think they'll do this.
I think they'll just let us collapse.

Kir Janja
09-25-2010, 02:33 PM
Oh, absolutely...it's all done behind closed doors...nobody knows anything until saturday morning of a long holiday weekend...then there's an emergnecy media news flash describing the resetting the currency devaluing...this long weekend gives time for merchants to re-tag their merchandise upward in price. You have to see it in action in Mexico...nobody goes to jail...it's all legal beagle...you can protest... but why...it's a done deal.

No need to go to Mexico, I have been through enough currency devaluations/redenominations/depreciations in my life (more than I can remember) to know both the mechanism and consequences. (Admittedly, that doesn’t exactly make me expert on subject).
But all those devaluations were possible because:
a) There was official exchange rate (set by the central bank, sometimes in relation to USD, sometimes to German mark ) to be reset;
b) No one in the world gave a squat about our dinar.

I still don’t see how you are going to devalue (i.e. change official exchange rate) for a currency that is:
a) In a (nominally) free exchange regime (i.e. official exchange rate doesn’t exist)
b) World leading reserve currency, one against all others are measured.

Can you really imagine one Monday waking up to find out that USD is all of a sudden pegged to Euro (or Yuan) at a fixed exchange rate of 0.375 USD/EUR (or 3.4 CNY/USD)? Not saying it’s impossible, but do you really think your government/FED will suddenly admit USD is not top dog anymore? How will the rest of the world react? What if Chinese simply refuse to exchange dollars for that rate and offer 5 Yuan per $ instead? Or what if, instead, all foreign US holders suddenly run to get rid of dollars (fearing further devaluations) thus ending dollar reserve currency status? How will oil market react?

Now, if we are speaking about sudden, Icelandic-style depreciation, either spontaneous or “spontaneous”, that is another story. I guess I could imagine that happen, but I don’t know if that could be done in such controlled manner to depreciate dollar for exactly desired %?

Kir Janja
09-25-2010, 04:33 PM
"Have we ever heard single viable scenario how exactly this supposed devaluation is going to happen?"

==================

"Global Financial System shutdown 12/24/10 to 1/2/11.

Conversion $100 [old USD] per 1¶ [New bi-metalic backed USD].

Currency convertibility window 1/3/11 to 1/29/11.

US backed debt instruments convert upon maturity.

Annual Bi-Metallic rate fixes set during a 4th quarter G-20 meeting, with the first such monetary conference to be held on 11/11/11.

Rate fixes and Monetary Policy for year 2011 as follows:

Gold ¶1000/gram, Silver fix ¶50/gram.

Liquidation of all insolvent entities permitted.

Working Group on Financial Markets disbanded by first G20 meeting."

- - - - - - - - - - -

That's all anyone needs to know.

Thanks for this story, TedNugget, but I’m afraid that’s just it – a story (possibly a new genre, financial fiction - right beside “Nordic Euro” story).
It just won’t happen.

You also need to know:

The dollar devaluation has to happen.

HAS TO !!

We have too much debt and this is the only way it has a chance of being lowered.

Why? Wouldn’t gradual depreciation over time be much safer, with same end result?

AntiSpin
09-25-2010, 08:31 PM
But not necessarily by deliberate action on the part of our own government. It will be accomplished by other countries and global corporations raising the dollar prices of things that they sell us. That's pretty much guaranteed to happen, and fairly soon I should think, so there will be no need for Washington (or New York) to do it.

It will be exacerbated by countries around the world rushing to divest themselves of dollars as soon as that price-raising begins.