You are viewing a single comment's thread from:

RE: Executive Exodus | Rats Fleeing A Sinking Ship

in #insidertrading4 years ago (edited)

My running theory is that Trump's business deals on a nation by nation basis caused the dollar to get relatively strong in comparison to other fiat dollars worldwide, and this "winning" in comparison to prior administrations caused the U.S. to lose in a different department.


"In contrast, when the value of a dollar strengthens against other currencies, exporters face greater challenges selling American-made products overseas." — investopedia


So, in the backward fiat world, sometimes there may need to be some losing, so you don't win yourself into a brick wall, that's just my theory anyhow.

Imagine if they put an Apple store in a very poor neighborhood and tried to sell iPhones for $500-$1000. If Apple wanted to be successful in selling these phones in the said area, they'd have to get competitive with their pricing and perhaps bring down their profit margins near to Androids.

I think we might be looking at worldwide simultaneous hyperinflation. I wonder if everyone hyperinflates all at the same time if the greatest depression ever, will be less bad than it would have been otherwise, and I suppose that'd depend on what country one is living in.

I'm reminded of this, the guy wasn't wrong concerning the nature of the global economy, the ebb, and the flow part, anyhow.

Sort:  

Yes, very plausible that we're experiencing global hyperinflation!
Is there any currency that is immune to it? I seriously doubt it since we're all interconnected through global trade. BTC? Gold?

If this keeps up, I think food may become the next toilet paper. As of now, the various currencies can still buy it. If we keep hyperinflating and sheltering in place, I think there may be plenty of money but not enough products on the shelves to service all the money in circulation.

Outside of food that has a long shelf life, if my concern was about the value of my money, I’d revert to money that is value. Like you said, gold, or maybe silver. Historically, gold was adorned by people for at least 6 millennia or more. I’m not sure BTC has a value other than the faith that people have in it, and as far as I’m concerned, that’s what gave fiat its value.

Perhaps it’s difficult to get gold and silver now? I’m not sure. At some point, the illusion that is paper gold and silver will fail, and the prices will correct. Maybe silver’s price is off more than gold’s. For a time during Obama’s reign, silver had hit almost $50 in its spot pricing. As of right now, it’s at $14.28, which seems ridiculous to me.

On the same day that silver hit the historic high of almost $50 (April 28, 2011), gold was at $1,531, and that's only $144 less than today's spot price. This must mean that we either got extremely efficient at mining silver or at printing it. It seems to me, there is a clear disparity in the uniformity (percentage-wise), of the change in the price of the two alloys. This is not financial advice.


Silver spot 4/28/11: $48.70
Silver spot today: $14.28
Silver is down by 70.67% from almost 9 years ago.

Gold spot 4/28/11: $1531.00
Gold spot today: $1675.00
Gold is up by 9.40% from almost 9 years ago.