What will happen when the US Dollar falls below 80???

What happen after every crash, massive devaluation of the currency, which translate in prices of goods going out of the roof, Banks close.

Eg. what was worth 1$ can raise 10 100 times it's price, depend on of severe this crash is, then for the same reason once everything is sold stores will close...no food no oil everything stop.

Look what happened in Argentina a few years ago.

In that case, let's say you have several ounces of gold and silver, will you be turning this dire situation into a win-win situation for you? Will it be wise to start buying up and converting as much USDs you have into gold, silver and (possibly) the Euro?

First of all, the dollar index is all about exchange rates. It says nothing about dollar purchasing power. If the dollar index goes below 80 I suspect nothing will happen to American citizens who pay and earn their dollars. There's no correlation between a drop in the US dollar index, and it should be reverse proportional, ie, the dollar index drops and CPI goes way up. That is not happening.

the dollars power has been diminishing at home for at least 90 years

"Core inflation is still low"

You joke.

it will be 79.9 !!!

start looking around and try and find some reasons that it is falling.

then you will get scared, no even want to keep $100 of funny money.

9 trillon in debt!!
DERIVATIVES
housing market (you ain't seen nothing yet)

Most people think that since 80 is a multi decade low that the futures traders black box trend following systems will trigger sell stops as the index breaks 80 igniting a wave of selling that will take the dollar sharply lower.

However, the central banks will be there to defend the dollar from speculative selling.

In a few weeks I wouldnt swap you a bag of rice for all the gold you had.

You have no idea what you're talking about.

It says EVERYTHING about the dollar purchasing power.

The dollar index is the price of the dollar vs a basket of six foreign currencies. As the dollar moves lower, everything Americans buy from overseas gets more expensive. Commodities also move higher because commodities are priced in dollars.

Nothing will happen.

IF it falls below 80, life will continue as it always has.

I'm talking domestic consumer prices, vomit barrel. And what do commodity prices matter when all is priced in US dollars? The US dollar cannot crash because other nations won't allow it.

Speaking of which, commodities are overvalued because of emerging market demand. If the world economy "crashes" (extremely unlikely) you believe commodity prices stay high?

It would be good to invest in some seeds and prepare your garden for them
Food will become priceless and when you have your own you are like an oil arab, tremendously rich

ok Mr know nothing RAUPP...let me give you a quick economics lesson and explain something every trader already knows.

If a commodity is priced in US dollars, and the US dollar is becoming more worthless against other currencies, then obviously the price of that commodity will rise inversely proportional to the dollars fall....which is exactly what has been happening for the past few years.

If you still don't get it, as an example, if the US dollar became worthless...and oil was priced in US dollars, then the price of oil in US dollars would be be what? Infinity because the dollar is worthless. Duh. That's how it works.

I hope this simple economic concept is not too difficult for you to grasp. If it is then read a book on basic macroeconomics.

Nobody answerd my question yet...except for the guy who told me to invest in some seeds

nothing is going to happen to you immediately. It's simply the multi decade low.

In the longer term, if it continues to decline, it would cause stagflation and even hyperinflation in the US.

If you don't know what any of that means, read up on what happened to Argentina a few years ago when their currency collapsed. You had upper middle class families diving through the dumpsters to find food.

It would be much worse if the US dollar collapsed because the US dollar is currently the worlds reserve currency.

First of all, you are saying oil demand is not driven by a structurally stronger global economy and the rise of emerging markets in Asia and the unprecented economic boom in Africa? All of this is caused by a weaker dollar... Demand has nothing to do with this? So India, being the largest consumer of gold, has nothing to do with a rise in gold prices? All caused by dollars? I heard some egotist dollar blabbering, but this takes the cake.

Now, show me why you think so. The US dollar is far from being worthless. The Reichsmark in 1923 was worthless and the Zimbabwe dollar is worthless. The US dollar is, anno 2007, far from being worthless. It's still #1 world reserve currency, nearly all transactions in commodities are priced in dollars and Asian emerging markets buy into US Treasuries. So much for your worthless argument, in both ways.

Gold rises due to dollar jitters, oil is more dependent on people buying in large quantities than a farfetched and theorized connection with the US dollar. So oil is going to be $1×10²³ a barrel if a hyperinflation happens in the USA and people will pay for it? What are you, insane? Don't you think that's a little... stupid to say? If that was the case, oil producers would switch to euros or yen but so far, no signs of a decisive shift from dollars to... Whatever.

What you're postulating is this: the US dollar will crash despite socio- and economic political situation in the world; still being the worlds reserve currency; global economy still performing strong; no signs of subprime woes going into regular and clean mortgage market.

Sounds to me like Raupp is employed by the Federal Reserve private bank.

One big problem I have with the Gold/Silver crowd is that gold and silver can be easily confiscated and even made illegal.

Therefore, these commodities would probably be relegated to value in a blackmarket situation exclusively.

And forget the Euro. That's being used as the other end of the rubber band against the dollar.

Just my opinions, of course.

And to be honest OP, I'm not sure what the answer is to your question. I would think the best answer is to convert some of your dollars into usable items such as food, medicine, tools, water, etc.

I wish the freefall doomsayers were right, but they are making the mistake of looking at the current economy though it were a completely rational entity. Countries like Japan and China have inseparably linked their economies to the US and if the US goes down, they go with it. They're not going to let that happen. For a smaller example, look at the Japanese S&L crisis and how foreign countries propped them up to keep their own economies afloat.

Never underestimate the government response (or gall) in situations like this. The government has been playing a few sleight of hand tricks with the figures and such up till now, they haven't even opened the bag of dirty tricks yet. Have you noticed how the markets have been acting strangely when Bernanke or Greenspan open their mouths? This will become standard as more government interference becomes commonplace. Technical analysis will quietly become less and less relevant as money begins to move based on where the governments say it should go.

I agree with half of what you said.

But why do you assume that Japan and China will forever continue to on this path?

Honestly, I do not see this happening long term.

I suspect this is the real reason behind all of the posturing and arm twisting going on the world.

Raupp, you haven't traveled the world much, lately?

It has EVERYTHING to do with purchasing power, and foreigners are purchasing US assets.. stealing... such as propping up the high end RE market in Manhattan.

Wake Up for shits sake. And the Gov't CPI is a sham. Buy any bread or gas lately?

I didn't say it was sustainable, but since when does that stop a government?

Well first of all, people an buy gold and silver with cash so that the govt does not know they have it.

second of all, the euro is the currency of an entire empire that is rising and still attaining more and more power. i believe the same will happen in america with the Amero and the North American Union but that is still a few years away.

finally, my question is in regards to what should i do in order to not get royally screwed when the dollar really DOES tank. this is the question.

its no use keeping food around because it is perishable. i was thinking the if you had gold/silver/euros and then you'd be appreciating in value in those. i do not 4expect the dolar to fall like a rock in a few weeks or days, but rather see it taking severla months, going slowly down day by day.

Learn a skill or trade. Have some ability/equipment to produce anything worth trading.

Ron Paul vs Ben Bernanke - July 18th 2007
Discussing the topic of this thread.

Part 1
[link to www.youtube.com]


Part 2
[link to www.youtube.com]

My two cents:
In our domestic economy:
Lower usd =
LESS worth =
higher interest rates (you get more worth*less usd) =
Gold prices increase,
Foreigners buy up u.s. assets cheaply (r.e., business, etc.),
USA being gutted, sliced up and sold out by the jews in charge.

you having a large quantity of gold and silver is good then right?>

If the value of the dollar goes down, how does the value of gold increase?

Curious.