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How do you protect yourself against the falling US dollar?
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flesh


Apr 20, 2011, 3:25 PM
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How do you protect yourself against the falling US dollar?
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I'm dealing with this right now. I've never dealt with it before and no one I know has any solid solutions IMO.

I've thought about gold/silver but it's so high.... I can't bear the thought of losing massive money again like I did on my last property. Maybe it is a good solution still?

I've been studying other currencies, with nothing solid to go on but my gut.

The best currency I've found is the australian dollar. This is only based on the fact that they have a Triple AAA credit rating internationally, the future forecast on their credit is stable, their national debt is only 22% of the GDP compared to 89% in the USA. Also, they offer 6.6% in just a 12 month cd. Aside from that, I've been doing some internet marketing to australians lately and as a result I've spoken to alot of the normal folks over there, a few dozen. They seem to be generally happy with their countries economic future and many of them have good salaries when compared to here even though their cost of living is generally higher.

I called the commonwealth bank of australia and they are emailing me some forms to bring to my bank to basically get notarized so that I can start up an account wo physically being there. They are the biggest bank there and I feel safe putting my money there as opposed to a bank in the carribean or the like.

In the last month the Aussie dollar has gone up 6% compared to the us dollar.

I really don't see our country doing anything significant anytime soon in terms of our national debt or the economy.

In a sense I feel bad for taking my money out of our economy but I have no voice to make economic policy here so what do i do?

Help me out here.


dr_feelgood


Apr 20, 2011, 5:29 PM
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Re: [flesh] How do you protect yourself against the falling US dollar? [In reply to]
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flesh wrote:
I'm dealing with this right now. I've never dealt with it before and no one I know has any solid solutions IMO.

I've thought about gold/silver but it's so high.... I can't bear the thought of losing massive money again like I did on my last property. Maybe it is a good solution still?

I've been studying other currencies, with nothing solid to go on but my gut.

The best currency I've found is the australian dollar. This is only based on the fact that they have a Triple AAA credit rating internationally, the future forecast on their credit is stable, their national debt is only 22% of the GDP compared to 89% in the USA. Also, they offer 6.6% in just a 12 month cd. Aside from that, I've been doing some internet marketing to australians lately and as a result I've spoken to alot of the normal folks over there, a few dozen. They seem to be generally happy with their countries economic future and many of them have good salaries when compared to here even though their cost of living is generally higher.

I called the commonwealth bank of australia and they are emailing me some forms to bring to my bank to basically get notarized so that I can start up an account wo physically being there. They are the biggest bank there and I feel safe putting my money there as opposed to a bank in the carribean or the like.

In the last month the Aussie dollar has gone up 6% compared to the us dollar.

I really don't see our country doing anything significant anytime soon in terms of our national debt or the economy.

In a sense I feel bad for taking my money out of our economy but I have no voice to make economic policy here so what do i do?

Help me out here.
Write your Congressmen.

Next!


guangzhou


Apr 20, 2011, 5:51 PM
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Re: [flesh] How do you protect yourself against the falling US dollar? [In reply to]
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Flesh, where do you live and what are you paid in?

If you live and work in the U.S., not much you can do.

E


caughtinside


Apr 20, 2011, 6:06 PM
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Re: [guangzhou] How do you protect yourself against the falling US dollar? [In reply to]
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You could kill an australian.


carabiner96


Apr 20, 2011, 6:16 PM
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Re: [caughtinside] How do you protect yourself against the falling US dollar? [In reply to]
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caughtinside wrote:
You could kill an australian.
I have one in mind, just waiting to be snuffed!


dr_feelgood


Apr 20, 2011, 6:19 PM
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Re: [carabiner96] How do you protect yourself against the falling US dollar? [In reply to]
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When you fall, the anchor is what catches you.


Toast_in_the_Machine


Apr 20, 2011, 7:44 PM
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Re: [flesh] How do you protect yourself against the falling US dollar? [In reply to]
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flesh wrote:
I'm dealing with this right now. I've never dealt with it before and no one I know has any solid solutions IMO.

I've thought about gold/silver but it's so high.... I can't bear the thought of losing massive money again like I did on my last property. Maybe it is a good solution still?

I've been studying other currencies, with nothing solid to go on but my gut.

The best currency I've found is the australian dollar. This is only based on the fact that they have a Triple AAA credit rating internationally, the future forecast on their credit is stable, their national debt is only 22% of the GDP compared to 89% in the USA. Also, they offer 6.6% in just a 12 month cd. Aside from that, I've been doing some internet marketing to australians lately and as a result I've spoken to alot of the normal folks over there, a few dozen. They seem to be generally happy with their countries economic future and many of them have good salaries when compared to here even though their cost of living is generally higher.

I called the commonwealth bank of australia and they are emailing me some forms to bring to my bank to basically get notarized so that I can start up an account wo physically being there. They are the biggest bank there and I feel safe putting my money there as opposed to a bank in the carribean or the like.

In the last month the Aussie dollar has gone up 6% compared to the us dollar.

I really don't see our country doing anything significant anytime soon in terms of our national debt or the economy.

In a sense I feel bad for taking my money out of our economy but I have no voice to make economic policy here so what do i do?

Help me out here.

You are not smart enough to make money this way. You might as well go the nearest casino and put the same amount of money on red or black. Either way you may make money our you may loose money.

My advice is to focus on how you make money and do more of that. You fight the falling dollar by making moe of it.


guangzhou


Apr 20, 2011, 8:40 PM
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Re:How do you protect yourself against the falling US dollar? [In reply to]
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Yes, the dollar is currently weak, by it will rise again.

I'm not sure how much you have in the bank, or how much you travel out of the country. Not sure how much you invest internationally either.

For 90% plus of Americans, moving money overseas isn't worth it. The amounts are to small in most American's bank accounts.

When you add all the International laws related to money, that changed drastically after 9/11, you need a lot of cash to make the effort worthwhile.

Currency exchange is tricky and require a ton of daily work to maintain. Each exchange also has a fee attached to it.

On the other side, you mentioned how great Australia was doing by comparing their debt level to America's. Maybe you should research debt a bit better. (Good versus bad debt for one).

Second, how much money does Australia actually make internationally. Exporting Australian goods compared to the U.S. I agree, America like credit more than any other country in the world.

Me, I live in Indonesia and currently I am paid in U.S. dollars, so the weak dollar did sting a bit.

Add the fact that I am building a new business here and just put 1/2 million U.S. dollar into a account to pay for building and start up costs, the drop hurts even more.

I don't think the U.S. government will let the dollar rise just yet. We need to be completely clear of the recent recession. keeping the dollar low helps America more at this point.

The dollar was like this roughly a decade ago, dropped, many panic and moved to Euros and Singapore dollars. (Singapore is better for foreigners than Australia by the way. Modern day Switzerland)

Then the dollar rose, now it's dropping again. Best time to move you money overseas is when the dollar is strong, not when it's weak. I doubt the U.S. $$ will sink much more, so you're actually to late to move it and gain anything anyways. When it comes to finances and investing, you can't be reactive, you need to be proactive.

You should have invested your money in the International markets sooner.

If you don't understand investments, you can always go with Mutual funds that focus on Energy, Gold and precious medals, and Developing economies. I choose those because of what areas you mentioned in your original post.

(Now isn't a bad time to invest in funds that are focus on real-estate either. REIT type funds. (National or International.)

Looking for good International Funds, consider funds that are focused on South East Asia's Developing economies. (Vietnam, Laos, Cambodia are growing now. China is slowing down because of new minimum wage hikes)


(This post was edited by guangzhou on Apr 20, 2011, 8:45 PM)


flesh


Apr 20, 2011, 9:59 PM
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Re: [guangzhou] Re:How do you protect yourself against the falling US dollar? [In reply to]
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Toast in da machine.. really? Not smart Enough? Whether I am or not...... how could u possibly Know? Haters. ?.. shit even my dad told me i couldn't succeed in biz.... one year later I made more than he ever did... that's just rude.

Guangzhou.... thx for ur thoughts.


guangzhou


Apr 20, 2011, 10:21 PM
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Re: [flesh] Re:How do you protect yourself against the falling US dollar? [In reply to]
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flesh wrote:
Toast in da machine.. really? Not smart Enough? Whether I am or not...... how could u possibly Know? Haters. ?.. shit even my dad told me i couldn't succeed in biz.... one year later I made more than he ever did... that's just rude.

Guangzhou.... thx for ur thoughts.

No worries. As for haters, this site is full of bitter people, that's for sure.


blondgecko
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Apr 21, 2011, 12:18 AM
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Re: [carabiner96] How do you protect yourself against the falling US dollar? [In reply to]
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carabiner96 wrote:
caughtinside wrote:
You could kill an australian.
I have one in mind, just waiting to be snuffed!

*ducks*


Toast_in_the_Machine


Apr 21, 2011, 4:03 AM
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Re: [flesh] Re:How do you protect yourself against the falling US dollar? [In reply to]
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flesh wrote:
Toast in da machine.. really? Not smart Enough? Whether I am or not...... how could u possibly Know? Haters. ?.. shit even my dad told me i couldn't succeed in biz.... one year later I made more than he ever did... that's just rude.

Guangzhou.... thx for ur thoughts.

When you sit down at a poker table and you can not pick out the mark, you need to realize it its you. If you think that you are better able to forecast countries economic futures than companies with large currency trading departments, the ability to execute their trades before you get your news feed, and are selling you a "great" opportunity to join them in the market, then you are a prefect mark.

Investing is gambling. You are placing financial bets. I don't go to casinos because I know the odds. The odds at any game in a casino, except a buy in poker game, are crap. Do some people make a good living on gambling? Sure, but they do it by staking the odds in their favor. They do it by playing games against marks.

True as it was then and now, you can only consistently make money investing with information that others don't have. You possess no information that professional currency traders don't have. Therefore you are not making good bets. Can you still have a bad bet pay off? Sure, but that doesn't mean it was a good bet.

You and gz do possess skills and information that others don't have. It is a better bet to place your money on that information. Invest in yourself and ideas where you know something other people don't.

If I recall correctly gz's investment is in a climbing gym. Guess what he knows better than almost everyone else in his area? Me, I'm working on a project to build a product I know will sell. How do I know? Because I actively participate in a an activity where everyone I speak with agrees that the current market offerings are less than perfect. I have knowledge about a market that others do not possess, therefore I have a good investment opportunity.

My advice has nothing to do with any estimations of your abilities beyond the fact that you asked for advice here.


Toast_in_the_Machine


Apr 21, 2011, 4:21 AM
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Re: [flesh] How do you protect yourself against the falling US dollar? [In reply to]
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flesh wrote:
I've thought about gold/silver but it's so high.... I can't bear the thought of losing massive money again like I did on my last property.

And, I'm going to guess here, but this is a bet I'd take...

You possessed no inside information on the property other than the expectation that, at the time, current market trends were going to continue. That is a currency trading type investment if ever there was one.

Invest in gold? What do you know about gold?

If you insist on gambling this way at least do it smartly. Take some knowledge you have (pine beetles are moving into the canadian arboreal forrest) find out which lumber companies haver the least exposure (say g-p), and place a small bet on that. You are not betting as efficiently as a big investment house (they made that choice months ago), but you may do better than the other casual investors who haven't made that connection.


scrapedape


Apr 21, 2011, 6:20 AM
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Re: [guangzhou] Re:How do you protect yourself against the falling US dollar? [In reply to]
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In reply to:
If you don't understand investments, you can always go with Mutual funds that focus on Energy, Gold and precious medals, and Developing economies. I choose those because of what areas you mentioned in your original post.

(Now isn't a bad time to invest in funds that are focus on real-estate either. REIT type funds. (National or International.)

Looking for good International Funds, consider funds that are focused on South East Asia's Developing economies. (Vietnam, Laos, Cambodia are growing now. China is slowing down because of new minimum wage hikes)

This to me seems like sensible advice for the casual investor. Probably because this is what I have done myself.

As TITM has explained, you're not likely to beat the market unless you have inside information or at least a very good understanding of the industry involved.

You also need to think about how much your time is worth. Assuming you can ANY better than something like an internationally balanced mutual fund, the question is how much better? Enough to make it worth the time you need to spend on educating yourself? How much do you end up making on the time you spend? e.g. if you can earn a 1% better return, and you have $10,000 to invest, and you spend 20 hours figuring this out, you've just implied that your time is worth $5/hour. You probably would have been better off working overtimeat your day job, doing some consulting on this side, or just relaxing and enjoying life for that matter.

My gut tells me that if you are just looking to park your chequing account somewhere, it's probably not worth it for the amount of money involved. If you are looking to invest, go with mutual funds or the like - picking a currency, like picking stocks, is generally a fools' game.


guangzhou


Apr 23, 2011, 8:31 PM
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Re: [Toast_in_the_Machine] Re:How do you protect yourself against the falling US dollar? [In reply to]
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Toast_in_the_Machine wrote:
flesh wrote:
Toast in da machine.. really? Not smart Enough? Whether I am or not...... how could u possibly Know? Haters. ?.. shit even my dad told me i couldn't succeed in biz.... one year later I made more than he ever did... that's just rude.

Guangzhou.... thx for ur thoughts.

When you sit down at a poker table and you can not pick out the mark, you need to realize it its you. If you think that you are better able to forecast countries economic futures than companies with large currency trading departments, the ability to execute their trades before you get your news feed, and are selling you a "great" opportunity to join them in the market, then you are a prefect mark.

Investing is gambling. You are placing financial bets. I don't go to casinos because I know the odds. The odds at any game in a casino, except a buy in poker game, are crap. Do some people make a good living on gambling? Sure, but they do it by staking the odds in their favor. They do it by playing games against marks.

True as it was then and now, you can only consistently make money investing with information that others don't have. You possess no information that professional currency traders don't have. Therefore you are not making good bets. Can you still have a bad bet pay off? Sure, but that doesn't mean it was a good bet.

You and gz do possess skills and information that others don't have. It is a better bet to place your money on that information. Invest in yourself and ideas where you know something other people don't.

If I recall correctly gz's investment is in a climbing gym. Guess what he knows better than almost everyone else in his area? Me, I'm working on a project to build a product I know will sell. How do I know? Because I actively participate in a an activity where everyone I speak with agrees that the current market offerings are less than perfect. I have knowledge about a market that others do not possess, therefore I have a good investment opportunity.

My advice has nothing to do with any estimations of your abilities beyond the fact that you asked for advice here.


Actually, it's a chain of seven climbing gyms and the gyms are the smallest component of the project.

As for stock, I invest in stock. Actually, I poured money into the stock market about two years ago when everyone was yelling it's the end. I am happy I did, I knew the stock market would rise, I research some companies and both stocks.

While the stock market does have risk, I would not consider it gambling. Day trading is closer to gambling than long term investing for sure.

The world is full of opportunities, but not everyone is willing to take the risk, put the time in, or make the effort to develop an idea they have.

other are very willing to go for it.


pinktricam


Apr 23, 2011, 9:21 PM
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A substantial stockpile of food, water, guns and ample ammunition would be a good beginning.


skiclimb


Apr 23, 2011, 9:48 PM
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Long experience at being broke makes me immune to such worries.


Toast_in_the_Machine


Apr 24, 2011, 5:41 AM
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guangzhou wrote:
Actually, it's a chain of seven climbing gyms and the gyms are the smallest component of the project.
I would love to read about this. If, or when, you feel like sharing details, please share.

guangzhou wrote:
As for stock, I invest in stock. Actually, I poured money into the stock market about two years ago when everyone was yelling it's the end. I am happy I did, I knew the stock market would rise, I research some companies and both stocks.

While the stock market does have risk, I would not consider it gambling. Day trading is closer to gambling than long term investing for sure.
It is all a gamble. Some are risks seem small and are really big. Some risks seem big, but aren't.

I'm not saying that individual investors don't make money. I too have made money from stocks (nothing makes you feel smarter than selling at the right time). It is important to know that you are playing a game where one of the players has a speed and size advantage that you can not match. That leaves being smarter or luckier. Many people confuse the two.

guangzhou wrote:
The world is full of opportunities, but not everyone is willing to take the risk, put the time in, or make the effort to develop an idea they have.

other are very willing to go for it.

I agree. There are deep social and cultural pressures that prevent many people from being their best. Good luck on your project.


guangzhou


Apr 24, 2011, 7:43 PM
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Re: [Toast_in_the_Machine] Re:How do you protect yourself against the falling US dollar? [In reply to]
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Toast_in_the_Machine wrote:
guangzhou wrote:
Actually, it's a chain of seven climbing gyms and the gyms are the smallest component of the project.
I would love to read about this. If, or when, you feel like sharing details, please share.

guangzhou wrote:
As for stock, I invest in stock. Actually, I poured money into the stock market about two years ago when everyone was yelling it's the end. I am happy I did, I knew the stock market would rise, I research some companies and both stocks.

While the stock market does have risk, I would not consider it gambling. Day trading is closer to gambling than long term investing for sure.
It is all a gamble. Some are risks seem small and are really big. Some risks seem big, but aren't.

I'm not saying that individual investors don't make money. I too have made money from stocks (nothing makes you feel smarter than selling at the right time). It is important to know that you are playing a game where one of the players has a speed and size advantage that you can not match. That leaves being smarter or luckier. Many people confuse the two.

guangzhou wrote:
The world is full of opportunities, but not everyone is willing to take the risk, put the time in, or make the effort to develop an idea they have.

other are very willing to go for it.

I agree. There are deep social and cultural pressures that prevent many people from being their best. Good luck on your project.


I will share the link to the press release with you when you go public here. For now, construction crews are onsite.


gunman


Jul 3, 2011, 9:56 PM
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Re: [guangzhou] Re:How do you protect yourself against the falling US dollar? [In reply to]
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guangzhou wrote:
No worries. As for haters, this site is full of bitter people, that's for sure.

That is oh so true. Seems like every thread has someone who has the "I'm pissed at the world" attitude.

As for the money issue, yea, getting into metals or something else before the problem is best. Since you missed that boat, you are now in damage control mode.

I guess what to do depends on what you think is going to happen to the dollar. A few countries have been meeting to discuss dropping the USD as the global reserve currency, if that happens you are going to need a wheelbarrow to carry enough cash to purchase anything. In that case purchasing a physical asset that you can sell later would be better than keeping USD's in an account or on paper with the bank.

At the moment the dollar seems to be recovering, but I suspect it will continue to fall for some time, that's just my take on things.


Partner macherry


Jul 4, 2011, 8:23 AM
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gunman wrote:
guangzhou wrote:
No worries. As for haters, this site is full of bitter people, that's for sure.

That is oh so true. Seems like every thread has someone who has the "I'm pissed at the world" attitude.

As for the money issue, yea, getting into metals or something else before the problem is best. Since you missed that boat, you are now in damage control mode.

I guess what to do depends on what you think is going to happen to the dollar. A few countries have been meeting to discuss dropping the USD as the global reserve currency, if that happens you are going to need a wheelbarrow to carry enough cash to purchase anything. In that case purchasing a physical asset that you can sell later would be better than keeping USD's in an account or on paper with the bank.

At the moment the dollar seems to be recovering, but I suspect it will continue to fall for some time, that's just my take on things.

you have 7 posts

you must have done lot of reading over the weekend


gunman


Jul 4, 2011, 10:14 AM
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Re: [macherry] Re:How do you protect yourself against the falling US dollar? [In reply to]
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Yes, it has been raining here and when it isn't raining, it is so hot and humid I didn't feel like doing much. That is the beauty of my life.


puravida9539


Jul 7, 2011, 12:43 PM
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Re: [gunman] Re:How do you protect yourself against the falling US dollar? [In reply to]
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Buy tons of things that will always be worth money. Porn is probably a good one. Tons of porn magazines. People will always want that.


saint_john


Jul 7, 2011, 6:15 PM
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Re: [puravida9539] Re:How do you protect yourself against the falling US dollar? [In reply to]
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puravida9539 wrote:
Buy tons of things that will always be worth money. Porn is probably a good one. Tons of porn magazines. People will always want that.
if thats the case i should be able to retire very soon.


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