Let's say after Qe2.....

[Marcus Aurelius]

1) The dollar collapses.

What happens then?

Bread lines?

Riots?

Or more of the same?

Shave a piece of your gold bar for gas? LOL.

[EJunkie]

Originally Posted by Marcus Aurelius

1) The dollar collapses.

What happens then?

Bread lines?

Riots?

Or more of the same?

Shave a piece of your gold bar for gas? LOL.

Interesting question.

With so many US companies shifting ownership offshore for tax purposes; would they care? Or broadly follow the money; is there anyone in the chain that cares?

[Marcus Aurelius]

They would care to the extent of how much we remain their largest consumers. "For their shareholders of course."

[EJunkie]

I'm going to regret this.

There is a school of thought the the US is the addict and the rest (well the significant players) of the world are the dealers. They'll keep the (debt) addict alive to support their business.

So they care, but not that much.

[Guest050715-1]

My guess is we'll just do the same thing: re-elect another hapless idiot like we did W even though he started a bullshit war.

Originally Posted by EJunkie

I'm going to regret this.

There is a school of thought the the US is the addict and the rest (well the significant players) of the world are the dealers. They'll keep the (debt) addict alive to support their business.

So they care, but not that much.

Interesting. Not sure I agree, but interesting. We may be addicts, but I don't know if the other world players are that organized.

[Black Sedan]

Originally Posted by Marcus Aurelius

1) The dollar collapses.

What happens then?

Bread lines?

Riots?

Or more of the same?

Shave a piece of your gold bar for gas? LOL.

I have retired parents (shocking eh?) They are hoarding their money and not spending it because they are convinced that the dollar is going to crash to 20% of its value soon.

I reason, well, hell, spend it now so you can enjoy its full value, your house is paid off. If you are that worried about it, buy some investment properties.

I don't personally agree; I think we'll continue with a rate of inflation we are used to.

We need a little inflation to keep things moving, otherwise those with $ hoard and don't invest. We would might do well to give investing a kick with a sudden bump in inflation.

I think the market effects of QE2 ending will be higher interest rates paired with tighter credit requirements for borrowers, in commercial and residential real estate. Commercial paper won't be nearly as easy to revolve; but corporations are hoarding cash rather then investing anyway.

The fed will ease off on reserve requirements for banks.

[gnadfly]

I don't see the logic of hoarding cash if the dollar is devalued to 20% of it current value.

I've had a bigger position in gold stocks over the last 6 years when it became apparent that we were going to have the Chinese pay for the wars by devaluing the currency. But if the currency 'collapses' this may be a frivolous investment move as well.

I'm kinda surprised some of the 'smarter' posters haven't weighed in with any investment advice on this thread.

[pjorourke]

Gold stocks are looking more interesting all the time.

[Marshall]

Originally Posted by gnadfly

I'm kinda surprised some of the 'smarter' posters haven't weighed in with any investment advice on this thread.

I did give some general investment advice on another thread........are you asking me for SPECIFIC advice? You want it for free? I do provide this type of advice, but it's never been free..............

[gnadfly]

I wish your specific advise was free but you charged for your cut 'n pastes.

[charlestudor2005]

Purchase your wheelbarrow now. We'll need them to carry the cash to the grocery store (like Italians with the lire in days of yore). No credit card usage anymore...ever.

[topsgt38801]

I do not believe your gold will have much value if the dollar crashes. At that point the entire economy will probably have totally tanked and I am not sure an ear of corn or maybe a head of lettuce might not have more value than a dollar or gold. I can eat the corn or lettuce, but dollars and gold are not very digestable. also at this point in the game, if you do not already have any gold, is $1500 an ounce really worth it and a viable solution?

[TexTushHog]

Y'all are living in a fantasy land, at least if you mean the same thing by "collapse" as I would mean. Currencies typically collapse when you have hyperinflation and that is caused by huge increases in the money supply, not moderate easing.

But if you have a true currency collapse, you have to put the economy into shock therapy either by tying the supply of currency (and therefore it's value) to an external stable currency (sometimes referred to as dollarization) or by dramatically reducing the money supply and government spending. These may be accompanies by formally devaluing the currency and printing new bills with "new" denominations.

[Marcus Aurelius]

OMG. You have been talking that way, wayyyy too long dude.

[Marcus Aurelius]

BTW I've invested heavily in lead and how to use it effectively.