Topic: HOW FAR AWAY DO YOU SEE THE COLLAPSE OF THE POUND AND THE DOLLAR?? (Read 3167 times)

I think that there has been a shift towards gold as a better deposit of value than Fiat currencies in the last decade, SPECIALLY since the 2008 financial collapse! Countries that are not understanding this trend would be seriously affected afte the upcoming collapse. China, Russia, Brasil, Venezuela and India have all been very busy buying gold... The UK however sold on cheap in 2006 (thanks to Gordon Brown [link]http://blogs.telegraph.co.uk/finance/thomaspascoe/100018367/revealed-why-gordon-brown-sold-britains-gold-at-a-knock-down-price/[link/]) ::  On the other hand, due to uncertainty and due to a weak euro-pound-dollar combination, Germany asked for the repatriation of 26% of their gold thats deposited at the Federal Reserve in the US!! As another element in this answer, In 2012 all central banks together bought more gold than in the previous 50 years!!! ::: [link]http://www.cnbc.com/id/100458951[/link]...

Even though is true that the Bretton Woods accord changed the balance of international economy to center around the dollar (which means, value backed upon the Use of Force) its also important to note that there seems to be a return to gold as an agreed and solid source of value that its not vulnerable to the money-printing caprice of Ben Bernanke and George Osbourne (+the company of most G8 countries)...

This is another place where Bictoin appears as an unexpected lifesaver for the modern Homo-Sapiens adventure. A de-centralised source of value seems  to be an essential element that needs to be put in place for a truly sustainable future.

The gold standard no longer exists, no western country has it's currency or economy backed by gold any longer. Both the USD and GBP are backed by confidence - confidence in the system, confidence in the ability to use a USD or a GBP to buy a good. As confidence erodes , the value erodes. To restore confidence the Fed and Bank of England (and now the Bank of Japan) have embarked on money printing exercises which have the impact of providing "free" money which is then used to buy assets that post a return. This has reinforced confidence but has had the impact of creating new asset bubbles. If those asset bubbles unwind sharply then once again confidence in the system will be questioned.

i have a good feeling that most of western countries backed by gold-keeping wealthy elite families will end up making cryptocurrencies illegal. just like torrent network is being attacked now. in the past year most of torrent hosted websites have been blocked. but i assume that they will shoot themselves in the foot as rest of the world will continue to develop in growth by using cryptocurrencies and drifting away from dollar/euro/pound. at that point wars might start just to restore the use of banking systems there and making cryptocurrencies illegal worldwide. we can speculate all day here - lets wait and see. im very interested to follow the world development after people taken control of their wealth.

Thanks so much for your answer!

I guess that It all dependes also on how many people trade their positions to alternative sources of value (Bitcoin + Gold + Silver + Other non G8 currencies & Investments)... Every pound/dollar we spend in Bitcoin its a finger put into to the wound (a wound that I think its necesarry to deepen If we want a more fairly distributed wealth in the planet). These assets are (partially, because some are manipulated i.e gold + silver) outside of the realm of Central Bankers dont belong to the Bildeberg revolving door of artificial consensus of "intrinsic value" (a.k.a use of force)...

To my mind what its coming its already inevitable. I ask for opiniones over here to see if my feelings are unfounded or premature.

When they decided to print money, buy trillions in debt, and keep artificially and historically low interest reates (in a NO GROTH scenario) they drove the whole planet into a one-way-street! The interest rates will double one day (in the case of england would mean just an increase to 1.5%)... The GDP to debt ration would keep increasing and just a wink of mistrust in the currencies and we slip....

 I think that the difference between the new crash that will come and the one of 2008 is that Bitcoin is growing in maturity. If it happens it will be a great test ::: The aggregate computer power of enthusiasts and professional miners vs. The governments and their promise of using their weapons.

Any thoughts!?

Have a great day!

you will

I'm aware of the problems, though I don't really care if it collapses or not.

10 years

The collapse will begin in August.

The decline began in April.

When bitcoin's price dropped from 266 to 50, many bitcoiner's wealth disappeared, but that is not real wealth, lots of fictive wealth

Same goes for market cap, if you cash out all those paper gains, you will crash the market price. The only way to maintain those fictive wealth is hold a near zero interest rate and keep printing new money to buy those assets to keep price from falling. But, without increase in real income, sooner or later those asset have to be sold to support the living expense no matter the price, and eventually they will fall into FED's balance sheet, and FED ends up bought all those assets

In fact FED through printing money claimed many assets, and people have to work hard to create those assets. But people are so ignorant that they only care about their earnings, so if someone come with money and buy their product, they will be happy, they never questioned where are those money come from.

This clearly proved that money's value is decided by a consensus, not supply and demand. As long as the consensus of POUND and DOLLAR's value holds, their value will not change too much

About market Cap of 2008 ::

via :: http://en.wikipedia.org/wiki/Market_capitalization

So the world (thanks to fraudulent banking, accounting and trading) de-capitalised on around 17.5 trillion dollars (Equivalent to the disappearance of the whole economy of the USA and Brasil in a space of roughly 3 months).

Now. Lets think about the GDP-to-Debt ratio in some of the countries of the G8 :: UK 507%, US es 279%, Japan 512%, Germany 278%…Is this normal? To my knowledge it isnt. (ANY COMMENTS ON THIS???) Here the info :: http://www.gfmag.com/tools/global-database/economic-data/11855-total-debt-to-gdp.html#axzz2WqlWNoIQ :::

Interest rates are at a HISTORICALLY LOW LEVEL and will rise eventually. What will happen to the Pound and the Dollar that day when Interest Rates rise substantially? (in a situation of EVER INCREASING DEBT a.k.a Quantitative Easing + NO GROWTH + a DECAP of 17.5 TRILLION USD)

Is it straight ahead of us? or Im I missing something?