DOLLAR COLLAPSE! WHAT THE HELL WILL HAPPEN?

[The Great Aztec Joe]

OK, I am hearing from different people that the Dollar is going to collapse. (Forget about ZERO interest borrowing from the FED.)

So, if this COLLAPSE Happens, What will be the short term result and the long term result?

I have heard some say that the Stock Market will collapse because everything will be going UP in price.

Now, I know the stock market is horribly overvalued and is due for a correction, but cause and effect says that a devaluation of the dollar does not cause the stock market to go down. As dollars become worth less and less, those stock prices should soar.

If XYZ was selling for $10 a share, when the dollar loses half its value, XYZ should be selling for $20 a share.

So, post your prognostications and explain why this Gloom and Doom is going to happen? I find this all amusing.

[aztecwin]

Joe, The argument should be are you better off in owning something rather than be a holder or owner of debt or dollars. A simple way to look at it is that if you bought a bushel of corn and used it later to trade for other commodities as you need then you would still have the same purchasing (trading) power you had before the further decline of the dollar. For me, the idea is to be in dividend paying stocks some of which are in Canada or Japan as a further hedge. I could go into the idea of owning silver dimes and quarters as a medium of exchange and a store house of value, but you get the idea.

[The Great Aztec Joe]

May 1, 2011 17:12:20 GMT -8 aztecwin said:

Joe, The argument should be are you better off in owning something rather than be a holder or owner of debt or dollars. A simple way to look at it is that if you bought a bushel of corn and used it later to trade for other commodities as you need then you would still have the same purchasing (trading) power you had before the further decline of the dollar. For me, the idea is to be in dividend paying stocks some of which are in Canada or Japan as a further hedge. I could go into the idea of owning silver dimes and quarters as a medium of exchange and a store house of value, but you get the idea.

I have a boat load of Nokia. I am debating selling it before the dividend, or waiting to take the dividend. I am undecided, so have set a sell price that is four percent above the present price. If it triggers, I must have decided to sell.