As you say, you're not too bright XAU is the international currency code for 1 troy ounce of gold (and XAG is 1 troy once of silver). For example, Goldstackers 1/10oz XAU round: http://www.goldstackers.com.au/stor...r-one-tenth-xau-1-10oz-incuse-gold-round.html
^ yep, I'm not bright! Now make a prediction on where USD be in 3.5 years time and show us how bright you are
In 3.5 years time, the US dollar will still be the pre-eminent global currency, and the Pacific Peso Australian Dollar will be where it is now. 1.0 AUD to 0.747 USD
I've got a separate bet with Skyrocket related to this. The USD will be the last currency standing. Forget about the Yuan becoming the next global reserve currency. I'm more pessimistic on the AUD simply because of the momentum of our economic stupidity. But in 3 or 4 years, who knows.
The USD will be the last fiat standing, but how long will it stand? I am getting tired of waiting for the endgame, so I hope this is the start of the USD spike and the global reset.
I don't think so. The Yuan will replace it as the world reserve currency imo. Nations are already starting to turn away from trading in it. It's fate as world reserve currency is doomed. By 2020 Americans can roll cigarettes will their paper fiat.
AFAIK, if China wants to make the Yuan the world's Reserve Currency they will need to back it with gold. Otherwise it is just another bit of paper with a promise written on it, and we have LOTS of those. I believe that China has about 5+ times as much gold as they are letting on and they will need that and more to make the claim stick. OC And the American "8000 tons" claim is bovine excreta!
One thing you and I can probably both agree on is Keating's 'banana republic' warning.. some are concerned we're headed there now, but I'm concerned we are there now :/
Agree, it is only a detail of just where we are on the slippery slope. Certainly not like most in terms of debt/GDP etc, but certainly heading there, and IMO nothing to slow our descent. What we have now is an ever increasing debt load that is rapidly getting out of control, and even today would take GREAT trauma to reverse. Try a moratorium on ALL social security COL adjustments for 5 years or more. MUCH harder Dole and DSP payments, the family home forfeited for Nursing Home care. $10 a time at the hospital Emergency Wards. $5 a time at the Doctor. Meds scripts to $10 a script. The list is endless. I fully expect ALL of those! JMNHO OC
I'll add a few more to the list.. No fuel rebates for the Mining Industry. No $20,000 spending spree for businesses to buy a new toaster! No new roads. No new sports stadiums! No handouts for farmers! No negative gearing! OC seems like you are hoping for a depression. Please don't pick on the red swans for the blue swans are just as bad..Meanwhile the black swan is waiting to land on the pond ans send ripples into the pond of big financial circles. REgards Errol 43
So when are the masses going to flock to the Yuan? A military dictatorship with an opaque legal system. ( not to be confused with the other military dictatorship with the slightly less opaque legal system ). The yuan will replace the dollar when those outside China have a reason to have complete confidence in the systems in place and the rule of law. Still a long way to go yet. There is still no choice. Golds response to the Brexit was at best schizophrenic. There is no other currency that is capable of absorbing incredible amounts of capital as quickly and as easily as the u.s. dollar. If more European countries leave the EU, capital will flee Europe quicker than free beer disappears at a Silver Stackers convention. The u.s dollar index will be 130 to 140 and the aussie dollar will hitch a ride as being a lesser currency reasonably well managed in a country with significantly less debt compared to the basket cases.
so whinfell, I am with you. The ratio of aussie dollar to the u.s. dollar could still be about 3 quarters but relative to the pound, the euro, the yen.....we will be a lot higher.
I remember about a few years ago the aussie was $1.05 - - - now it's $0.74 - whats wrong with this picture - our currency is shit? Dug up this chart