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Old 01-30-2008, 09:29 PM
 
Location: Heartland Florida
9,324 posts, read 26,669,327 times
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I do not know about you, but I am sick and tired of Federal Reserve Notes. You just cannot save money without inflation stealing it. Is there anything we can do to influence them or get rid of the FED altogether?
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Old 01-30-2008, 10:18 PM
 
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Wanna get rid of the feds?Buy euros.
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Old 01-31-2008, 02:39 AM
 
Location: western East Roman Empire
9,309 posts, read 14,209,477 times
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There are very few efficient ways for US residents to invest in the euro. The most efficient is through a futures account, minimum notional investment around $200,000 ($20,000 on margin), and then you'd have to be a pretty astute trader.

tallrick, only a political movement among the ruling classes themselves could lead to the abolishment of the Federal Reserve.

As it stands, to put it crudely, the US ruling classes are using the US consumer, and the dollar, as guinea pigs to subsidize globalization, and they broker the deal, they collect the commissions, and one of their tools is the Federal Reserve.

The average wage-earner and even the average business owner has no power to stop inflation and virtually no power to influence the ruling class, except through pressure not to raise Federal income tax (this, at least, seems to work).

Your best bet is, first, to continue to develop a sound business, hopefully one that adds value to the global economy.

Second, invest in securities and commodities that in some way ride the wave of globalization. This second bet is not so great because you still have to pay commissions to the lords who organize the financial system and you are exposed to the vagaries of international capital markets, but it is better than doing nothing, which is a sure loser, and better than speculating in domestic bubbles, a game that only the manipulators and a few lucky small guys can win.

In the meantime, hope for the best and prepare for the worst.
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Old 01-31-2008, 08:15 AM
 
3,695 posts, read 11,343,152 times
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Quote:
Originally Posted by tallrick View Post
I do not know about you, but I am sick and tired of Federal Reserve Notes. You just cannot save money without inflation stealing it. Is there anything we can do to influence them or get rid of the FED altogether?
The Federal Reserve doesn't cause inflation. It reacts to it.
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Old 01-31-2008, 09:23 AM
 
Location: WA
5,640 posts, read 24,873,914 times
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This post assumes that all inflation is caused by FED policies. That simply is not true.

A very large cause of higher prices in the past few years comes from increased demand for commodities. As the world improves its economic situation more and more people are demanding oil, coal, metals, chemicals, wood and related products, etc. This puts upward pressure on these products and most other industries so prices go up.

Another change we have seen in the last few years is the move to bio-fuels which has put great pressure on farm production that results in higher prices throughout the food supply. Farmland has been diverted to corn production raising grain prices so food and feed stock go up, and then livestock, milk, eggs, etc.

Some of the many things that have helped health care skyrocket in this country are the large amount of litigation, the higher rate of unpaid care (hospitals are forced to treat those without the means to pay), and the aging of the population. The demands on the system continue to push prices higher.

Even though increases in money supply and easy credit can fuel inflation, there is much more to the price changes we have experienced in the past ten years.
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Old 01-31-2008, 10:04 AM
 
Location: Heartland Florida
9,324 posts, read 26,669,327 times
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It is funny how inflation spiked in 2002-2004 after the idiotic low interest rates after 9-11. Why do we even tolerate the private bankers creating our money? I have gotten to the point where I am thinking of converting my savings to scrap metal and melt it into ingots and bury it.
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Old 01-31-2008, 10:23 AM
 
1,552 posts, read 3,159,312 times
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lol @ fed not creating inflation
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Old 01-31-2008, 12:46 PM
 
955 posts, read 2,152,231 times
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Quote:
Originally Posted by cdelena View Post
This post assumes that all inflation is caused by FED policies. That simply is not true.

A very large cause of higher prices in the past few years comes from increased demand for commodities. As the world improves its economic situation more and more people are demanding oil, coal, metals, chemicals, wood and related products, etc. This puts upward pressure on these products and most other industries so prices go up.

Another change we have seen in the last few years is the move to bio-fuels which has put great pressure on farm production that results in higher prices throughout the food supply. Farmland has been diverted to corn production raising grain prices so food and feed stock go up, and then livestock, milk, eggs, etc.

Some of the many things that have helped health care skyrocket in this country are the large amount of litigation, the higher rate of unpaid care (hospitals are forced to treat those without the means to pay), and the aging of the population. The demands on the system continue to push prices higher.

Even though increases in money supply and easy credit can fuel inflation, there is much more to the price changes we have experienced in the past ten years.
Amen. I couldn't have said it better.
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Old 01-31-2008, 02:10 PM
 
3,695 posts, read 11,343,152 times
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Quote:
Originally Posted by bxlefty23 View Post
lol @ fed not creating inflation
Then teach us how it does, oh mirthful one.
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Old 01-31-2008, 02:26 PM
 
5,760 posts, read 11,505,269 times
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A lot of this simply is not true . . .

Quote:
Originally Posted by cdelena View Post
This post assumes that all inflation is caused by FED policies. That simply is not true.

A very large cause of higher prices in the past few years comes from increased demand for commodities. As the world improves its economic situation more and more people are demanding oil, coal, metals, chemicals, wood and related products, etc. This puts upward pressure on these products and most other industries so prices go up.
Money, such as dollars, itself is another commodity. If its value was real -- not bs pumped out by the Fed, the money would not tank as commodities went up, but rather rise as well. Say for example, it were still legit backed by Gold at a set price. In once-upon-a-time-land was $35 an ounce. Now that Gold is over $900 an ounce, the dollar would be worth enormously more, as well. Of course in practice it would limit the printng of the dollars, stop the inflation and there would be no run up in the commodities. btw, I am not a gold backed dollar fan, but at least it is honest.

Here is the real truth. Relative to each other the commodities are not going up. Only the dollar they are being (mis)represented in is going down.

Quote:
Another change we have seen in the last few years is the move to bio-fuels which has put great pressure on farm production that results in higher prices throughout the food supply. Farmland has been diverted to corn production raising grain prices so food and feed stock go up, and then livestock, milk, eggs, etc.
There is little to no application of bio-fuels in the wheat markets and only limited in the soybeans. Even less in veggies. All are flying high (in dollar terms) across the board. Again this the dollar going worthless.

Quote:
Some of the many things that have helped health care skyrocket in this country are the large amount of litigation, the higher rate of unpaid care (hospitals are forced to treat those without the means to pay), and the aging of the population. The demands on the system continue to push prices higher.
Totally ignores the areas of real price rises in the medical industry --

Pharmco, which is far cheaper on the international market, but the US pharmco industry has bribed the US Congress to llimit common Americans' access to the international market -- even outlawing import from Canada and Mexico.

Other area of price growth is the commercial profits for the whole administrative vulture string that has swooped in to take over the medical industry. Includes admin and insurance companies who profit on both sides.

Quote:
Even though increases in money supply and easy credit can fuel inflation, there is much more to the price changes we have experienced in the past ten years.
cdelena, if any of what you stated were the case, why is the dollar tanking relative to OTHER currencies -- Euro and all the rest? Those currencies all experience the same events, and are rising relative to the dollar.

=============

Back to tallrick's question -- How to get out of the dollar, while in the US.

I am thinking you may wish to look to examples of how folks in other countries with corrupt governments and corrupt currencies have weathered the experience.

The general local practice was to only trade as little as possible in the worthless local currency, but store the value of anything you earned in a stable currency -- Back then -- US dollars.

In years past, the US dollar was recognized as a store of value. That was a big part of how we got in the mess we are in now. So much was used and held overseas that the Fed could just go printing and distributing the crap with no real concern.

That is clearly not the case, now. So now we are the folks with a corrupt govenment and corrupt money system. If we use those other folks' example from the past, it would be that while you may be required to paiid in and accpet dollars, you would quickly pay what need locally in those dollars to get rid of them, and then convert and store any surplus in stable currencies or commodities.

Which is pretty much what Perot, Gates, Buffett and others started doing in the large scale a few years when they all could see this coming.

The problem with investing those dollars in dollar denominated investments -- such as US corporate stocks, etc., is that while they appear to have an investment return, since they are dollar denominated the return may not be keeping pace with true inflation, and you will taxed as captial gains as though the gain were real.
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