Get Rich or Die tryin....................
Endzone's thread about the dollar's slide started me down a path of enlightenment. I think we all know the dollar is going to slide. Now how far is up for debate. SOOOO How do we profit from it. Let's put our heads together and profit from it. Is their a bright side to this. My mortgage is 170,000 dollars. If the dollar slides 25% my mortgage is now 120,000 if I diversify. Maybe this is what we are doing with our national debt. Everyone who has been financing our debt has no interest is seeing the dollar slide. Last week ALL OPEC countries around the world lowered their holdings in the greenback by at least 2%. (It was on Drudge) Russia went from 67% to 65% for instance. Now HOW DO WE PROFIT FROM THIS. I truly believe their are some highly intelligent people on this forum. I know I needle you guys but it is ALL in good fun. Let's put out some ideas to profit from the dollars slide. I do some day trading and have 25,000 to play with. I usually look for companies they pay off a god dividend and buy their shares a couple of days before their post date and then sell them back when the dividend is distributed. Many people are just lazy and re-invest in their companies shares. So when this happens I sell. It's like clock work. I've been extremely succesful with Cedar Fair doing this. The next dividend post is 1-2. They will reinvest around the thrteenth. If any of you guys would like to try it I'll show you how. It is automatic money.
Now how do we profit from the dollars slide. Here are some of my ideas
1. Buy Euro's
2. Buy Gold
3. Look at Middle East currencies.
4. More extreme... take out a 2nd mortgage and buy positions in other currencies. You'll double whammy em' your mortgage won't be as much as when you took it out and you gain big time onthe back end. What do you guys think????
I really would like to have Niner's thoughts here. Are banks diversifying? What's a good strategy?
Above there were some ramblings. One fly in the ointment may be China. They are in for a penny in for a pound. They do not want to see the dollar slide. They are invested in us too deeply. Unless they want to take us down. Collapse our economy. How in the hell did we get so vunerable.................... or are we just letting inflation eat our debt. Would love to know Bernanke's thoughts here. I'm just playing with 25 g's. Can u imagine people who are investing multi millions?
Machiavelli Wrote:4. More extreme... take out a 2nd mortgage and buy positions in other currencies. You'll double whammy em' your mortgage won't be as much as when you took it out and you gain big time onthe back end. What do you guys think????
I don't see the "double whammy". Even if your mortgage is "worth less", you still have the same dollar figure associated with it. You could do well buying foreign currency, and then coming back to dollars after the "crash", but that's not a, "double whammy"
Besides, I don't see anyone looking to make the US economy crash. Even if they hate us, it is the worlds largest economy by far, and making it crash will hurt everyone.
The slow changeover of dollars, if it's really an issue, is proof that the change is slow, not an effort to cause a big shakeup.
Secondly, there are alternatives to oil, and I don't think this strategy would damage the US as much as it would the other nations involved.
The dollars you get on your mortgage you convert into another currency. That currency escaltes. The dollar goes down. So your catching both sides of the swing. There's my double whammy. Maybe my thinking's off, but I would like to know what you guys think. Didn't Soro's and (the guy escapes me right now, Berkshire Hathaway lives in the Midwest) both put huge bets against th greenback recently. Some other sites are talking about a Amero to combat the Euro. My school no longer gets the WSJ, I used to love reading that. I bet you they are on top of this. They talked alot about it last year.
Quote:Some other sites are talking about a Amero to combat the Euro.
I don't get the reasoning there.
Just googled Amero.... and jesus there are a ton of articles on it.
http://www.humanevents.com/article.php?id=15017
Now follow me here. We let the dollar collapse. Pay off our national debt. Then they start this Amero. Bingo... New World Order.
GB really got me on to this with the Oil Bourse. Manipulating currencies to solve our debt problem. Maybe this W is smarter than I give him credit for. Now how do we profit from it.
Machiavelli Wrote:Just googled Amero.... and jesus there are a ton of articles on it.
http://www.humanevents.com/article.php?id=15017
Now follow me here. We let the dollar collapse. Pay off our national debt. Then they start this Amero. Bingo... New World Order.
GB really got me on to this with the Oil Bourse. Manipulating currencies to solve our debt problem. Maybe this W is smarter than I give him credit for. Now how do we profit from it.
I think you should ask Argentina if this is a good idea....
Machiavelli Wrote:The dollars you get on your mortgage you convert into another currency. That currency escaltes. The dollar goes down. So your catching both sides of the swing.
Those are 2 ways of saying the same thing. There is no "double whammy", it's one thing.
DrTorch Wrote:Machiavelli Wrote:The dollars you get on your mortgage you convert into another currency. That currency escaltes. The dollar goes down. So your catching both sides of the swing.
Those are 2 ways of saying the same thing. There is no "double whammy", it's one thing.
I think what he is equating it to is for example a home equity loan, where you would turn the equity in your house into dollars and then into euros and then back into dollars to pay off the loan.
I see what he is saying but the appreciation of the euro in terms of the dollar would have to be greater than the combination of the interest rate paid and the cost of converting dollars to euros and vice versa. I guess you could use the interest paid as a tax write-off, but to be fair you would have to also declare the income made on conversions....
With the increasing costs of copper and nickel, maybe we could just melt down pennies and nickels for their metals and sell them. In effect destroying the currency and making money for ourselves....
D'oh
Here's a sample outline. You have currency A B C D. A decreases by 90%, B decreases by 30%, C increases by 40%, and D increases by 60%. Now you could of held B and converted it to C, but the best case would of been to have taken out a loan in A converted it to D and pay off the loan in A. To me it makes sense. Maybe I'm off.
Along these lines.... Remember a couple of years back when Japan was in deflation. The central bank of Japan's interest rate was essentially zero. What kept an American company from taking out a loan in Japan and investing it in America at 5%. I always wondered about that.
I'm personally not ready to give up on the dollar. The American economy is far too strong to abandon the dollar. It's still the strongest in the world.
Once we're out of Iraq you'll see the dollar rebound IMO. It will never be the strongest simply because so many people have them, but the foundation of it is stronger than any other currency.
I've been waiting your reply. I agree to some extent. We do have the world's strongest economy. But it seems there are some extraordinary pressures on the dollar. GB's oil bourse scenario seems very plausible to me. It started me down this path.
Quote:Maybe this W is smarter than I give him credit for
I should of said Republicans.
Machiavelli Wrote:I've been waiting your reply. I agree to some extent. We do have the world's strongest economy. But it seems there are some extraordinary pressures on the dollar. GB's oil bourse scenario seems very plausible to me. It started me down this path.
Sorry for the delay, I actually missed this thread when I was on yesterday.
There are some pressures on the dollar but the question is are the foundations upon which it's built strong enough to handle it. My opinion is yes.
Americans are the most affluent society in the world and as such there is no shortage of foreign investment into this country to tap them as a market. Not that there isn't money to be had in currency speculation, Warren Buffet has made millions doing it.
Not to get too personal with this, but are you in management or finance and investment. What's keeping a guy who invests for banks into parlaying his job for personal gain. Like buy a stock your going to buy for the bank. When it goes up you sell your private stock first then the companies. Fo the right person you could be a hell of a friend. I bet your in management, but if your in the investment wing............................ of the Bank of America. Wow, we could make beautiful music together.......you and I................................................ ;-)
Machiavelli Wrote:What's keeping a guy who invests for banks into parlaying his job for personal gain.
Insider trading laws?
It has to be impossible to enforce though. Unless you totally Enron it up.
Machiavelli Wrote:It has to be impossible to enforce though. Unless you totally Enron it up.
Like announcing your plans on a message board? lmfao
Right. I'm sure the agents all around us. Black helicopters outside too? Would Yahoo message boards about a stock be insider trading too? I suspect not. If I told you I like stock so and so. Drum up some interest and then sell said stock. Is that insider trading? I don't think so. Although do you remember the kid who posted on a message board under various names pumping penny stocks. he did have to give back like 100,000 dollars. So you might be correct. It has to be pretty hazy and extremely hard to prosecute. First off, you don't even know my name. They going to put an arrest warant out for Mach/Dogger? Who Knows?
Machiavelli Wrote:What's keeping a guy who invests for banks into parlaying his job for personal gain.
Like Southeagle said a pesky thing called the law. But I'm not on the investment side of the house.