Economic collapse.......?

[gitrdone]

Any thoughts out there on the American economy,,dollar,the price of gold and the way they are heading? Also what effects they may(will) have on our economy?

[pickrel pat]

i dont worry about gold to much....... if the canadian or american dollar goes to crap, ill still have the gold i bought to sell if need be.

[Sushi]

The US economy will chug along one way or another. IMO: Gold is risky. Energy is undervalued. Once things begin to pick up (and its unpredictable when that will be), gold prices will likely plummet and energy prices will rise. Its all in the history books...google gold price history and look at 1982. Yes, things are different this time...but...

remember, the wealthy investors make their big buys when things are down...they are optimists.

[FishingMOM]

Our dollar tanked 3 cents today

[Sushi]

and that is because of confidence in the US economy, despite all the difficulties.

[eastcoast]

it doesn't look good that's for sure.

[BeeGuy]

Originally Posted by Sushi

and that is because of confidence in the US economy, despite all the difficulties.

I don't think it is entirely due to confidence.

I don't buy the safe haven BS the news feeds us.

This 400 BILLION $$ Bond ploy by the Fed Res. is plenty reason enough to upset the dollar 3c.

LINK

Is it confidence that saw international investors flock to the US markets? Or was it half a trillion dollars worth of low interest bonds with which to hide bad debt????


I also agree with the above poster who suggested that energy is undervalued. I think it is significantly undervalued.

Energy is the greatest currency of all.

[Sneeze]

Originally Posted by Sushi

and that is because of confidence in the US economy, despite all the difficulties.

I kinda disagree.

When you purchase an equity or a fund, you do it with dollars that you have purchased with your labor.

When you cash in a fund or equity... you have to think of it like selling - or trading it for US dollars. (Another type of asset). When you have large amounts of people cashing out of funds & equities, they are actually buying US dollars in trade for those assets.

Supply and demand comes into play, where to the average investor or bank (not the fed) the high demand for US dollars causes the price of those dollars to climb against the assets that are being cashed in.

[Sundancefisher]

Originally Posted by Sushi

and that is because of confidence in the US economy, despite all the difficulties.

Maybe because mining sector took a huge hit and these export loses impacts the dollar?

[AndrewM]

Originally Posted by FishingMOM

Our dollar tanked 3 cents today

That is the best news for the Canadian economy. Hopefully it stays down so the manufacturing side of things can pick back up.

[MountainTi]

Originally Posted by FishingMOM

Our dollar tanked 3 cents today

Love it. Just about stuck a couple US paychecks in the bank yesterday. Didn't get around to it. Doing it today and is gonna save me $2000. Hopefully it drops more in the time it takes me to get to Rocky.

Originally Posted by MountainTi

Love it. Just about stuck a couple US paychecks in the bank yesterday. Didn't get around to it. Doing it today and is gonna save me $2000. Hopefully it drops more in the time it takes me to get to Rocky.

Ugh, I ordered some U.S. cash at the bank and meant to pick it up yesterday...that was a costly mistake not getting it. Think I'll spin the wheel and wait till next week now.