| |
Jazzmusicman
|
"But that was not his question (I think). It seemed as though the money is just sitting there, unused and untouched, and susceptible to possible long-term currency fluctuations.
Yes, it sits in that account. As it is a Direct Deposit account, they do not provide an ATM card. I must go to the bank to withdraw any funds that I need.
"Over time, the currencies I mentioned will--most likely--store wealth better than the Baht. Until then, those currencies could be easily parked in a safety deposit box if the notion of having international accounts at a bank is too daunting."
Yes, the safety deposit box is a good idea, and yes, it is not millions of dollars......just small money.
I think the suggestion of taking 1/2 or more of it and converting into U. S. Dollars or American Express Travelers Checks and storing it in the safety deposit box is what I will do.
|
Bangkok Girls : Meet Attractive Thai Girls
Posted on: 12:12 am on Jan. 20, 2010
|
|
Buttman 007
|
"I think the suggestion of taking 1/2 or more of it and converting into U. S. Dollars or American Express Travelers Checks and storing it in the safety deposit box is what I will do."
----------
Jazzmusicman
I don't get it! Everyone here just told you that is it highly likely that the US dollar is going down. You basically just said that you're going to go against the advice of everyone that took the time to answer you. Except for the safety deposit box suggestion. 
Here is a summary of the last 48 hours in this thread:
JazzM: How should I store my cash, so that I preserve my wealth over time?
Everyone: That's complicated. But whatever you do, DON'T PUT IT IN THE US DOLLAR.
JazzM: Ok. Thanks for the advice. I think I'll put "half or more" in the US dollar.
Buttman: WTF!?
Investing in the US dollar is a vote of confidence in the US government. The US government is currently so f***ed up, we actually came within three days of a technical default over the Christmas holiday.
http://www.zerohedge.com/article/us-avoids-technical-default-three-days
The US government is a massively large ponzi scheme, and it controls the entire US economy. It's all fun and games while the music plays. But, like all all ponzi schemes, one day (without warning) the music stops.
Just read the following article, then decide if you want to invest in the currency of the US government. It's very enlightening, and very accurate. If every American was forced to read it, we'd have a revolution.
Click on full screen, if you want to read it.
http://www.scribd.com/doc/24458341/Sprott-December-2009
|
Bangkok Women : Meet Sensual Bangkok Women
Posted on: 6:35 am on Jan. 20, 2010
|
|
Wanderingsam
|
Hi Buttman,
In fairness, not everyone said don't put it in US dollars. I think the summary might more accurately be a preference of a small basket of currencies that include the US dollar. Even you suggested that 25% be in US dollars.
The problem for me is that I don't really know what his goals are. If he is trying to save a bit of money and intends to use it in Thailand and is clearly not an economist following the currency market, than he may as well keep it in baht. On the other hand if he expects to need dollars in the future and doesn't plan to spend the money in Thailand, and doesn't want to be a currency speculator than I guess he may as well keep it in dollars. Just my view.
|
Thai Girls : Meet Sexy Thai Girls
Posted on: 9:55 am on Jan. 20, 2010
|
|
Buttman 007
|
"Even you suggested that 25% be in US dollars."
Yes, but only when hedged appropriately. For every 1 US dollar, I was suggesting having 3 commodity-rich currencies from politically and economically stable countries. And the only reason I recommend having US dollars at all is in case the world dips into a deep recession, like what we saw a year ago. In those circumstances, the dollar rallies.
------------
Valetta--The United States is about to flood the world with new Treasury notes. Trillions of them, this year alone. Imagine the staggering amount over the next five years! And Trillions more will need to be rolled over. Currently, there is not enough demand for Treasuries, so the Fed has entered the market and is buying Treasury debt, which makes our government it's own creditor and debtor. That's bonkers!
In 2010, the US government will issue $2.25 TRILLION in new debt. That's a $500 billion increase from 2009, which was a record at the time.
At what point does China and the rest of the world object to all the debt being jammed down their throats by a horribly irresponsible US government? The ponzi scheme of the US government cannot be played forever. I know that sounds daunting or apocalyptic, but, at some point, the music stops.
As Balls alluded to, our government has inflated the money supply by cosmic proportions. Just wait until that money begins to soak its way into prices. Inflation ravages the economy. Our politicians are too weak and our economy is too fragile to raise rates enough to offset inflation. Investors will flee Treasuries. There won't be anyone to buy the Trillions of new issuance. The government faces default. The dollar collapses. That's how the dominos will fall.
Whether the end-game plays out exactly like that, or some version of that, I certainly don't see room for the dollar to appreciate. Somewhere in the Tarot cards is a risk of severe dollar depreciation.
Sorry to make this so long. But it's pretty fascinating to me. Just a few years ago, this scenario was unthinkable.
|
Bangkok Girls : Meet Sexy Bangkok Girls
Posted on: 12:10 pm on Jan. 20, 2010
|
|
SidWenes
|
Long time ago I decided it was a good idea to keep a stash of cash on hand for emergencies. After a few years I started making emergency massage parlor and strip club visits, and realized the strategy didn't fit my personal temperment. Safety deposit box would have been different. But banks will be closed if there's civil unrest.
The invesment advice wouldn't be a fit for me, and I don't have the background to judge if it's good or bad. Couple things this week have made me think about currency risk. And by the time I start thinking about something the easy money has often passed....
|
Bangkok Girls : Meet Attractive Thai Girls
Posted on: 5:01 pm on Jan. 20, 2010
|
|
Valetta
|
Buttman,I do not think it is likely that there will be anything like a catastrophic collapse in either the US economy,or the $US anytime soon for the following reasons:-
(1) The US despite its recent financial difficulties is still by far the biggest world economy with the highest individual per capita income.China notwithstanding its rapid growth is still,by comparison,a poor country.The world creditor nations,confident about the vast underlying strength of the US,will continue to fund both the US government budget deficit,and the US balance of payments deficit which are,of course,not the same thing.
The US government funds the budget deficit and is responsible for its management(sovereign debt),but the balance of payments deficit is largely funded by US banks and companies.
(2) Foreign lenders have a vested interest in financing the US balance of payments deficit as it enables the US consumer to continue buying foreign goods.
(3) US creditors know that the US has an underlying capacity to meet its debt obligations by reversing the Bush tax reductions,or even further increasing taxes.Tax increases reduce the budget deficit,and make the US government less reliant on funding the deficit with borrowed money.
(4) The US has a vast untapped reserve of assets which,if push comes to shove,can be sold to foreigners if,eventually,they become disenchanted with depreciating US treasury bonds.You will know the US is getting into financial difficulties when its politicians,both Democrat and Republican,start advocating why it is a good thing to increase taxes,reduce expenditure(especially the bloated military budget),and sell to foreigners assets which,previously,they had said were not for sale because "They were vital to the US national interest".
(5) The slow decline in the value of $US will enable the US to compete more successfully in foreign markets because its goods will be cheaper.At the same time it will make foreign goods more expensive for US consumers,and this will result in the reduced consumption of foreign goods,and the increased consumption of locally produced goods.These 2 effects will stimulate the US economy and reduce both deficits.However,foreign travel will be more expensive for US citizens who will just have to adjust to travelling to LOS less often.But no doubt this small sacrifice will be more than compensated by the knowledge that the US is getting onto a more sustainable financial path.
(6) The US has demonstrated over the last century an unmatched capacity for innovation which is in large measure responsible for its economic growth.I think this is not forgotten by lenders.It makes them confident that somehow the US will surmount any present and future difficulties.
|
Bangkok Women : Meet Beautiful Thai Girls
Posted on: 7:52 pm on Jan. 20, 2010
|
|
| |
|
