International contracts are written in dollars by off - shore banks. The only reason the dollar is used is as a medium of exchange. The dollar is instantly convertible to any other currency being the sole reason. The fed has zero control over this - the entire reason the contracts are done off shore. No central bank has authority over it - it’s hence unregulated. There not really even done in dollars - simply the exchange conversion rate is handled in dollar terms.
I think that may be the plan but the recent elections in Europe and the repudiation of the WHO pandemic treaty show the 'people' may have other ideas.
Again, I'm not saying that prices aren't up and some people aren't struggling, but these are people who were teetering on the edge anyway. These people always exist, and I know that, and it really stinks to be them, but the mistake is to generalize their situation to everyone. All I can report in my own life with the people I know is even with inflation and interest rates no one seems to be struggling. Take that for what it's worth, my life, which is also not generalizable, but it is what I see. This is what I see in my peer group, my family, and that is a diverse group from all education levels, walks of life, backgrounds, etc.
This is probably one of the most misunderstood concepts. Thank you, I agree, the dollar isn't going anywhere soon, but it doesn't stop people from using their misunderstanding of this as the basis for their doom and gloom predictions.
While your quote can be true, like most quotes, it's more complicated than that. The other huge factor is where are you in terms of retirement/accumulation vs preservation of your investments. Those who are in the accumulation phase and +10 years from retirement and have a sufficient emergency fund are just throwing away significant gains by pulling money out of stocks right now for the "impending crash", which may happen tomorrow or next year or in two years or never. If my investments lose half their value tomorrow, what do I care when I don't need them for 20 years? If the crash isn't tomorrow, literally every single day the market is up I'm losing potential gains. This isn't being a pig, it's being strategic and understanding math and compounding.
Not sure about that at all. Too many bears sit out and miss gains. I know, I work with 50-somethings that have never invested in stocks in their 401K ever, just cash, because they believed "stocks are bad you will lose your money". Stocks have beat cash over the long run immensely, even with the dips and crashes along the way. Not even close.
I've read Warren Buffett's quote that it isn't timing the market but time in the market that grows wealth. Then there's Jack Bogle, to paraphrase: instead of betting on a spin of the roulette wheel (individual stock), bet on the casino (broad index funds).
I'm retired so doesn't matter to me. They are trying to kill coal in WV and all coal power plants are supposed to be shut down by 2030. The dirty little secret is that the mid-atlantic US gets their power from WV. And guess what they are building as fast as they can on any plot of land they can find.......Date farms.
That's my strategy. I tell young people if you want Million$ in your portfolio, it will take 30 years so you'd better get started now. It may never happen, but it sure as heck won't happen overnight.
About "nobody wants to hold yuan".
I do. It has done well in the 15 years Ive been stacking. 90% of my gold was purchased at $1250 oz ave. Even have fractional gold in grams and 1/10 oz for bartering when TSHTF. 30 rolls of constitutional silver also, Mostly dimes. Lots of silver eagles.
Buffett is very good at avoiding risks. He / Charles said they are better at avoiding the dragon than slaying the dragon. They are in the casino business too (insurance company is the casino if you think about it).
I can understand gold as it is a reserve currency. Silver hasn't been for 100 years.
During those times wood burning stoves sold like hotcakes and seemingly overnight empty lots where previous builders had conveniently dumped all of their leftover scrap lumber were cleaned out. If you were living paycheck to paycheck as many were, those were scary times being able to afford to keep the house lit and warmed, its occupants fed and at least a little gasoline in the car to get back and forth to work. Very scary for many. Here is hoping it doesn't come to that again.
