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Has the US dollar usurped gold as the place to go in times of uncertainty?

Discussion in 'BBS Hangout' started by adoo, Jun 20, 2022.

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Has the US dollar usurped gold as the place to go in times of uncertainty?

Poll closed Jul 23, 2022.
  1. yes

    2 vote(s)
    22.2%
  2. no

    7 vote(s)
    77.8%
  1. adoo

    adoo Member

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    Economic fads ( tulip, pet rock, bicoin, et al) come and go, but the US dollars remains strong.

    Things have hit the fan in a few places around the world and the U.S. is looking pretty good by comparison

    By some measures, the U.S. dollar is at its strongest relative to the euro / yen / yuan in 20 years.


    The recent rate hike by the Federal Reserve Bank---paving/ the way for more in the next few quarter---only accentuates this economic trend.
    A strong US dollar actually helps the US to fight inflation, as the stronger the USD the lower the import costs are.

    On the other hand, the things the world buys are getting more expensive. Commodities like oil and nickel are all priced in dollars, so if a country needs to buy a bunch of oil or nickel, they will have to pay extra to convert their currency into dollars to buy it. As these countries convert more USD---increasing the demand for the greenback---they bid up the price of the dollar.

    This safe haven status was enforced further as Russia invaded Ukraine. There is an argument that the dollar has usurped gold as the place to go in times of uncertainty.
     
  2. Blake

    Blake Contributing Member

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    If people are worried about the end of times/total economic collapse, I wouldn’t buy gold and silver, I would buy cartons of cigarettes and tons of airplane bottles of booze…those will be the most valuable items on the planet if the **** ever really hit the fan.
     
  3. heypartner

    heypartner Contributing Member

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    Canned Peaches



     
    #3 heypartner, Jun 20, 2022
    Last edited: Jun 20, 2022
    jiggyfly likes this.
  4. TheJuice

    TheJuice Member

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    Yes; thats the whole point of the Bretton Woods system. Also why we cam defecit trade/spend like sailors; as well as our greatest foreign policy tool.

    Britain had their navy, we have our banks.
     
  5. boomboom

    boomboom I GOT '99 PROBLEMS
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    Usurpin on some sizzurp
     
  6. Bandwagoner

    Bandwagoner Contributing Member

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    gold assumes some sort of system will be in place. It's preparing for in between the "everything will be normal" and mad max level of future.

    Otherwise I agree, you are better off investing in canned food and shotgun shells.
     
    Invisible Fan likes this.
  7. Nook

    Nook Member

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    Yes, I agree that the dollar right now is stronger than it has been in a long time.

    It is still the premiere large currency in the world, and for all the talk of doom and gloom surrounding the USA economy for nearly 70 years now, the USA is in a good macro level economic place and will be for years.

    The main concern I have with the USA is at the micro level. I do not think that it is a good time to be lower middle class in the USA and I don't think that has been the case for sometime, and I don't think it will get any better anytime soon. The USA remains the best country for ease of upward mobility in some ways, but the housing issues in the USA have gone from being a strength to following the same problems we see in places like Western Europe and NZ and AU. The US government needs to do something about it, but I just don't see it happening.
     
  8. Ubiquitin

    Ubiquitin Contributing Member
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    In the Spanish system you could cut up a doubloon by 1/8ths. It's why stocks were traded in fractions historically.

    Gold and silver fail because the money supply can explode due to a new mine being discovered. Fiat paper currency succeeds because the rate of growth theoretically can be contained.

    Like in Fallout, I expect we will use bottle caps.
     
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  9. TheJuice

    TheJuice Member

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    If we never got rid of the green reputation bar on this site, we'd have a perfect currency for the end of the world right there.
     
    Nook likes this.
  10. Sajan

    Sajan Member

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    I remember requesting the REP back years ago!
     
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  11. Invisible Fan

    Invisible Fan Contributing Member
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    It’s the prettiest contestant in a fiat pageant full of over indebted uggos.

    Gold wins out when the dollar is weak or treasuries start liquidating. It might be a good hedge compared to parking funds in 8%+ inflated cash, but liquidity crises carries its own risks.

    Everything is collateralized or synthetic these days…a bit like that Mickey Mouse short with the brooms. Gold brooms, paper brooms, chopped up collections of house brooms with different ratings, digital brooms with ugly faces. Or is it musical chairs?

    Milkshakes will be drunk
     
    #11 Invisible Fan, Jun 20, 2022
    Last edited: Jun 21, 2022
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  12. Roscoe Arbuckle

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    This is the kind of thing that would be posted by someone who has no clue how economics work...
     
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  13. Mr. Brightside

    Mr. Brightside Contributing Member

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    Yes, I agree. I can bring any amount of USD bills to da club, but the minute I bring in a bar of silver or gold I immediately get stopped by security.
     
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  14. Roscoe Arbuckle

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    Where are you getting bars of silver & gold?

    I'll wait for your answer...

    (ignorant people...)
     
  15. adoo

    adoo Member

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    the irony is rich.

    it is too bad that the poster doesn't understand the economic dynamics / data as described in my post.​

    on the other end of the spectrum, Roscoe's post contains no economic description/explanation.

    it'd behoove Roscoe to heed Abe Lincoln's advise,

    it's better to remain silent and be thought of as a fool,
    than to speak to remove all doubts.​
     
    #15 adoo, Jun 21, 2022
    Last edited: Jun 21, 2022
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  16. adoo

    adoo Member

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    #16 adoo, Jun 21, 2022
    Last edited: Jun 21, 2022
    TheJuice likes this.
  17. Ottomaton

    Ottomaton Contributing Member
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    Only Fatty would go out of his way to be a dick to someone making a joke.

    https://letmegooglethat.com/?q=buy+gold+bars
     
  18. Roscoe Arbuckle

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    That wasn't Lincoln, and it is spelled "advice" you buffoon...
     
  19. Roscoe Arbuckle

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    You didn't follow through with that search, did you? Unless you think that gold bars are of the novelty size...
     
  20. CCorn

    CCorn Member

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    Why do you care so much about a joke?
     

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