Friday, Jan 09, 2009
End of an Empire?
The Trumpet: Prepare for Dollar Collapse, Warns Ex-Bank of England Policymaker
Americans must ready themselves for a massive devaluation in the dollar as international investors dump their U.S. assets, says a former Bank of England policymaker. Relying on the kindness of foreigners to finance our standard of living may be about to be revealed as irresponsible folly
Posted by sold 2 rent 1 @ 10:52 AM (813 views) Add Comment
19 Comments
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1. sold 2 rent 1 said...
“There will, before long (my best guess is between two and five years from now) be a global dumping of U.S. dollar assets, including U.S. government assets,” says Buiter. “Old habits die hard. The U.S. dollar and U.S. treasury bills and bonds are still viewed as a safe haven by many. But learning takes place.”
The consequences of a society and economy structured around consumption and spending, as opposed to production and savings, may be about to wreak havoc on the dollar and America’s standard of living. •
2. rm96696 said...
How about the pound? It doesn't strike me as much more solid. Did he sleep through the job when he was with the bank of england?
3. plato said...
I don't know how this would be defined in economic terms but it seems that everything is returning to its true value and that includes currencies.Not such a bad thing then, but very painful. I think the scariest revelation for governments in this sense is that taxes will also have to decline in proportion and bang goes the priveleges they plan for.
Now average wages are well behind these inflated values we have given to material items in recent years,so they won't really come down and ordinary people will live a normal life without too many of the ignorant aspirations that were recently aquired. Again not such a bad thing. We'll just have to get used to living within our means and being charged,by those we must pay,within our means. They, like governments will have to start being reasonable and not greedy. No empire can exist by valuing itself too highly.
4. shipbuilder said...
Wasn't this article on before? As was said before - it is just opinion - the dollar is where it is for a lot more reasons that a safe haven. This is just another bloke throwing his hat into the ring with a prediction so he can be hailed later on if it comes true. He simply hasn't give a solid reason why it will happen. Of course, there will always be those who unquestioningly accept it as fact because it matches their own views.
5. drewster said...
The story is a few days old and it is just opinion, but Willem Buiter isn't just "another bloke" - he was a former member of the BoE's Monetary Policy Committee and he writes for the Financial Times, amongst other achievements. I don't know how good is track record for predictions is, but time will tell.
6. sold 2 rent 1 said...
shipbuilder,
"Of course, there will always be those who unquestioningly accept it as fact because it matches their own views"
Of course there will always be some people who don't want to think about the unthinkable and will continue to ignore the building evidence until the day it actually happens.
7. shipbuilder said...
S2R1,
I've been thinking the unthinkable for years, just not the same unthinkable as you. Likewise, I don't ignore anything, I just see it for what it is - opinion. If anything has been apparent from this situation, it's that our opinions and insights are as valid as the 'experts'.
Opinion from 'experts' is not evidence, neither or theories, neither is speculation on the internet, neither is 'what i'd like to happen'. Evidence is evidence, and i'll accept it when I see it without bias.
Drewster,
As i've said, if i've learned anything it's that our opinions and insights are at least as valuable as 'the experts', so in those terms, he is just 'another bloke'. Since when did membership of the MPC make one credible? I don't usually see a torrent of respect on here for their judgements......
8. sold 2 rent 1 said...
Shipmate,
"Evidence is evidence, and i'll accept it when I see it without bias"
Maybe you should let your right brain have a bash at viewing the evidence. Things may appear differently.
9. shipbuilder said...
8. sold 2 rent 1 said...
"Shipmate,
"Evidence is evidence, and i'll accept it when I see it without bias"
Maybe you should let your right brain have a bash at viewing the evidence. Things may appear differently."
Evidence is evidence only when viewed logically, by definition. What you are asking for is 'faith'. 'Faith' is for the religious who believe what they want or that which is comforting.
All the theories put forward by modern science, even those which you might think required 'intuition' or right brain thinking, were reached in the same way. You think that the discoveries were made by 'seeing things differently' because you do not understand their thought process.
10. titaniccaptain said...
@Shipy
your using the wrong brain lol I think I know what S2R1 is saying here and its interesting..............its all perspective..what I find the most interesting is that there are many different perspectives on this site and they all predicted the housing crash..........yet there are those who diddnt see the crash who have equal abilities either from a financial backround or a more alternative meta physical backround............why is this????.....just bored guys.
.....Oh yes and back to the topic.....will the dollar tumble?........my head says YES my instinct says no.........yes because of the following
"The consequences of a society and economy structured around consumption and spending, as opposed to production and savings, may be about to wreak havoc on the dollar and America’s standard of living." and it seems logical that everyone will want to dump before the spend out of recession bull is continued into the next phase of lunacy
And I think NO because I get the feeling that there are other games at play here with an agenda which I have no idea of the nature of, Call it NWO call it whatever I dont care....something doesnt feel right and if it doesnt feel right then it isnt right.......that ladies and gentlemen is instinct...........just like my instinct is saying gold is not the safest places for money even though my head is screaming buy buy buy gold...ok Im going to shut up now not enough sleep
11. jamonit said...
Surely, if there were any logical evidence for an impending crash in the dollar, it would already be happening. And surely any forecasting has to be a mixture of intuition and deduction....there are too many variables for any deductive prediction to be guaranteed accurate, and any situations where there are many variables, subconcious [intuitive] analysis can be helpful.
Sooo, you're both right...
12. sold 2 rent 1 said...
shipbuilder,
I am currently reading a book. "Imaginging the Tenth Dimension" By Rob Bryanton
He is a musician (right brain thinker) and has no formal training in particle physics. Look at the reviews on amazon, he gets panned by the scientists who toes he is treading on. They hate the way he has no maths to back up his arguments.
Although his ideas don't have the evidence the scientists require they have definately struck a chord with many people.
11 minute video of his concepts
http://video.google.com/videoplay?docid=-1842990065661471202&ei=4XhnSaTpFI-cjQLGoPnoDQ
Forum
http://www.tenthdimension.com/phpbb/index.php
Blog
http://imaginingthetenthdimension.blogspot.com
The next 2 years will see a massive clash between left and right brian thinking, just as we will see a clash between east and west civilizations.
13. shipbuilder said...
10. titaniccaptain said...
"@Shipy
what I find the most interesting is that there are many different perspectives on this site and they all predicted the housing crash..........yet there are those who diddnt see the crash who have equal abilities either from a financial backround or a more alternative meta physical backround............why is this????"
No they didn't, what happened as far as I remember is that everyone came here with the same background and some went from that to the more 'alternative' after. S2R1 if I remember is from an IT background and originally started with logical analysis-based wave stuff.
As for intuition, i've 'felt' that things were wrong for about the last 10 or so years now. That feeling was simply seeing injustices and imbalances that I did not have the knowledge to explain. Now I have the knowledge to explain them, their perfectly logical. See what I mean?
14. Shipbuilder said...
12. sold 2 rent 1 said...
"shipbuilder,
I am currently reading a book. "Imaginging the Tenth Dimension" By Rob Bryanton
He is a musician (right brain thinker) and has no formal training in particle physics. Look at the reviews on amazon, he gets panned by the scientists who toes he is treading on. They hate the way he has no maths to back up his arguments."
As i've just pointed out in my previous post - if he's right, someone will be able to prove it. That doesn't make it 'alternative' thinking, just an idea that he hasn't explained yet.
15. titaniccaptain said...
I see what you mean shipy on the latter for 10 years none of it has felt right and yes the injustice has been in our faces.however form the cross section of people I have talked to on this site there seems to be quite a diverse spectrum of angles colliding together at this housing crash epoch.....and I dont know why
16. sold 2 rent 1 said...
"there seems to be quite a diverse spectrum of angles colliding together at this housing crash epoch.....and I dont know why"
Consciousness Singularity.....perhaps
17. titaniccaptain said...
@S2R1
Sonething like that....... for me its the christian end times scenario that seems to be playing out before our eyes..........
18. sold 2 rent 1 said...
TC,
Not just described in the Book of Revelations, but also in the prophesies of virtually every religion, spiritual philosophy, and mystery tradition throughout history. This time is now at hand.
This is no ordinary civilization crash.
19. nopensionnohouse said...
S2r1 is right. There is a massive clash in my head. I think my left brain is fighting my right brain. Yes it is, no it isn’t.