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NeoTrader

US Dollar Becoming Toilet Paper

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I know the title is a bit dramatic, but I was wanting to get other people's thoughts on what they do with their USD when the value is taking such a nasty hit, and who knows how long it will stay depressed. As you may have surmised by my screen name I'm new to the game, so I am interested in the opinions of more experience operators.

 

Is this even a factor to those folks who trade in USD?

 

How do you hedge against a falling dollar?

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I think it's more than just the $. Paper money is just a fabrication and can be printed like monopoly money. Gold for example is giving a fairly clear indication of what people think about this. It has intrinsic value and as far as I know, alchemists haven't been able to turn lead into gold so far!

 

I think the important thing to try to maintain when it comes to paper money is relative stability. We don't want any major currency out of control and value needs to be changing steadily. That way, economies adapt over time. Also, it forces you to look to real assets which move in proportion to currencies(and perceptions).

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I know the title is a bit dramatic, but I was wanting to get other people's thoughts on what they do with their USD when the value is taking such a nasty hit, and who knows how long it will stay depressed. As you may have surmised by my screen name I'm new to the game, so I am interested in the opinions of more experience operators.

 

Is this even a factor to those folks who trade in USD?

 

How do you hedge against a falling dollar?

 

Tangibles have been the way to hedge.

 

The dollar has been falling steadily since the FED learned that it could influence interest rates. Since about the 1920's the USD has lost about 95% of its value. It is not a new phenomena, though its decline might be accelerating since at this point we are plainly fabricating money.

 

But life is good for now.

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How do you hedge against a falling dollar?

 

Well it's not Swiss Francs :helloooo:

 

The extreme (until it's not) version :missy:

 

Tier 1 Food and Water

Tier 2 Guns and Ammo

Tier 3 Precious Metals, (with plenty of pre 65 silver coins for 'small' purchases / trades)

Tier 4 Elevated, cautious Leverage (including FX Positions - but remember they're all in a race to the bottom)

.

.

.

 

Tier # Rural Land

Tier # Multiple Passports

 

Tier # Toilet Paper :haha:

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Not sure this one would actually be a hedge on dollar and dollar holdings - but it is the best idea I've had in the last 15 minutes... :)

 

Tier #: Personal Drones (fixed wing and chopper)

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Safe haven's of the month - USD, UST, dividend eft's???? (Whatever happened to Gold, Oil, etc as safehavens?)

 

 

I have been open to the possibility of a USD rally for some time now… but somehow just can’t get to the ‘dollar as safehaven’ threshold…

 

…also having a similar issue with the longer end of US treasuries…

 

A story – In March of ‘87 the bonds just flatlined for two weeks. This was the exception, to say the least, because for years before they often had routinely put in 2 – 4+ full point daily ranges… When they finally broke down, I picked a number - 76.16 ( using eWave, fibs, and ‘beginners’ intuition)

… ecstatic and wretched trading months passed...

… On Tuesday, Oct 20, 1987 during the (new) evening session got filled… sheer luck ... ‘suffered’ a few minutes of 4 tick adversity to 76.12 :angry: (actually we need a scared Smilie) then USZ7 rallied overnight to over 85 … got out next morning with over 8k per car…

 

time fkn flies ppl … fast forward to Oct. 2011... USZ11 futures playing in striking distance with double that 76.12 = 152.24… No, 152.24 is not a Magic Number for me now like 76.16 was then :missy: … I’m not a noob anymore… and I’m not nearly as ‘superstitious’ as I was then…:helloooo: …nevertheless I have some serious decisions re the long end of treasuries coming up… be trailing some entry stops up under that shit at least...

 

>On to gold, etc ...

 

Gold Versus Paper: The Dow to Gold ratio - the aha! moment

 

...still clinging to my Silver/Dow spread and itching to lift hedges on PM holdings...

 

>Back to the dollar

 

"...The Fed's philosophy - a resolute faith in central planning and debasement - has been unchanged since Paul Volcker stepped down as Chairman in 1987.

 

Rather than considering any change of direction, the Federal Reserve Board is likely asking itself: "Should we print $50 billion or $500 billion in our next round of stimulus?" "Can the ECB bailout Greece now or do we first need to bail out the ECB?" "Should we call our money-printing 'liquidity assistance' or 'quantitative easing'?" Or perhaps, "Do we have enough ink refills for all those printing presses?"

Peter Schiff

off color green:- recycle all those brown toilet paper cores - issue new dollars on rolls...

 

a dollar is a debt

http://www.zerohedge.com/contributed/prophets-doom-12-shocking-quotes-insiders-about-horrific-economic-crisis-almost-here

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I know the title is a bit dramatic, but I was wanting to get other people's thoughts on what they do with their USD when the value is taking such a nasty hit, and who knows how long it will stay depressed. As you may have surmised by my screen name I'm new to the game, so I am interested in the opinions of more experience operators.

 

Is this even a factor to those folks who trade in USD?

 

How do you hedge against a falling dollar?

 

I don't think that this is the correct time to declare the USD as "dead". I think that what we have seen from the beginning of the year is an aggressive correction of the major currencies against the USD, after several months in the last quarter of 2011 in which the USD gained many points. The European debt problem is far from being over, and the catastrophe there will lift the USD to new highs…

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