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How can I hedge against a collapsing USD?


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Just now, Neeranam said:

USD has been losing 10% +for years. Don't you know how much they are printing?

"USD has been losing 10% +for years".... that's not a true statement. Yes, they are printing a lot of money but so are other countries. The global financial system and the amount of debt many countries carry is indeed insane but it is what it is thanks to the corrupt politicians everywhere. 

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4 minutes ago, Clarkey611 said:

Get your previous incumbent re-elected. The current incumbent just prints dollars and devalues the whole financial sector.

Trump certainly did better for the US economy than those before and after, partly as he wouldn't start wars thousands of miles away. 

Dear oite his wisdom, he was fighting a losing battle due to Obamas incompetence. 

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My (vague) understanding of bitcoin is that is a competitor for government central bank digital currencies, which many govts are preparing to roll out. 

So govts will cause the value of bitcoin to collapse?

At least that's one theory out there.

 

https://futurism.com/harvard-professor-in-the-long-run-the-price-of-bitcoin-will-collapse

Bitcoin's price bubble will burst under govt pressure.

 

"It is folly to think that bitcoin will ever be allowed to supplant central-bank-issued money," 

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1 minute ago, save the frogs said:

My (vague) understanding of bitcoin is that is a competitor for government central bank digital currencies, which many govts are preparing to roll out. 

So govts will cause the value of bitcoin to collapse?

At least that's one theory out there.

 

https://futurism.com/harvard-professor-in-the-long-run-the-price-of-bitcoin-will-collapse

Bitcoin's price bubble will burst under govt pressure.

 

"It is folly to think that bitcoin will ever be allowed to supplant central-bank-issued money," 

It's one thing for individual countries/Central Banks to issue digital currencies that replace their own currency, but it's something else entirely to have a single global digital currency. Individual digital currencies would be valued on the economy of that country, much in the same way that individual currencies are at present, instead of the FOREX we might have something like the DIGIEX. Currently, USD sits at the top of the FOREX, all other currencies are valued or calculated based on USD. But how would DIGIEX work, what would sit at the top of the DIGIEX tree?

 

Again, currently, the value of USD is measured using the value of six other currencies, YEN, EURO, Pound, CAD. Swedish Krona and Swiss Franc. If we were to replace USD with that basket of economies (not basket of currencies) and add others to it such as YUAN, that could be the unit of measure against which DIGIEX uses to calculate the value of individual digital currencies. So one THAI-DIGIEX might be worth 0.40 UK-DIGIEX for example, and so on. But really, all that's happened in that scenario is that digital money has replaced paper money,, using the same system, except reliance on USD has been eliminated.

 

Tryin to equalize all of those individual DIGIEX's so that one THAI DIGIEX equals 1 UK-DIGIEX is impossible because the relative value of the respective economies is different, that's why a global BITCOIN wont work. Mostly it wont work because it's not based on anything, apart from air and trendy demand.

 

 

 

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Best hedge against currency of any kind is precious metals. Gold, silver ( both going gangbusters ) platinum, palladium.

I've made and lost money on shares and property investment. I have never ever lost money on precious metals.

Bitcoin? Something I can't see, hear, feel or touch? It has all the characteristics of a religion, and we all know how leaders of religions fare compared to their followers. Google the net wealth of David Miscavige, Brian Houston, and Jerry Falwell.

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16 minutes ago, nigelforbes said:

single global digital currency.

not sure the article mentions single global digital currency.

i think countries that roll out digital currencies don't want bitcoin interfering.

but your knowledge of finance is greater than mine.

 

there's another concept that i came across ... not sure if it's off topic ..

this guy was a top financial guy in Greece.

sounds like they want to put everyone's money in a central digital bank and then everyone gets a digital wallet connected to the digital bank. but not sure if that affects the USD. 

 

Yanis Varoufakis on why we should let the banks burn

https://www.youtube.com/watch?v=lbji8utP6dU&t=1297s

 

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3 minutes ago, save the frogs said:

not sure the article mentions single global digital currency.

i think countries that roll out digital currencies don't want bitcoin interfering.

but your knowledge of finance is greater than mine.

 

there's another concept that i came across ... not sure if it's off topic ..

this guy was a top financial guy in Greece.

sounds like they want to put everyone's money in a central digital bank and then everyone gets a digital wallet connected to the digital bank. but not sure if that affects the USD. 

 

Yanis Varoufakis on why we should let the banks burn

https://www.youtube.com/watch?v=lbji8utP6dU&t=1297s

 

Sure, I merely extrapolated what I thought would be the ultimate scenario in the minds of many people.

 

The issue for me in all of this is relative pricing, how/who/where is the value or worth of one Thai digital coin, compared to the value or worth of another country's coin? Right now, that relative worth or value is established directly or indirectly via USD and the FOREX, what will replace that? One person in Thailand says I'll buy a US widget from America that costs one USD digital coin, except the Thai buyer is only holding Thai digital coins, which have a different value. 

 

National digital currencies are not an issue, that's a straight replacement for paper money.....go for it. But the exchange rate/value issue is a biggee and I don't see anyone talking about that.

 

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3 minutes ago, nigelforbes said:

National digital currencies are not an issue, that's a straight replacement for paper money.....go for it. But the exchange rate/value issue is a biggee and I don't see anyone talking about that.

sorry, no idea about exchange rates.

so any money sitting in bank accounts will be directly converted to digital currencies? 

ok, i'll take your word for it.

thanks.

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your thai broker should have something that allows you to make 'bets' on the exchange rate for THB/USD.  you made need to sign paperwork to get approval for foreign exchange trading.  talk to your broker.

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10 hours ago, Neeranam said:

USD has been losing 10% +for years. Don't you know how much they are printing?

Here's a chart of 35+ years of the US$ vs a basket of other major currencies.  Since pointing is a thing in Thailand, please point to the decline you're referencing.  

https://www.cnbc.com/quotes/.DXY

 

USD.thumb.jpg.1cb964619091a017deefbdd472f709e5.jpg

Edited by gamb00ler
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10 hours ago, Neeranam said:

A lot of Las Vegas visitors leave with more than they started with.... but....

 

LasVegasBizarro.gif

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So only poor people post on this forum then lol !?

 

You would be surprised at some the activities of millionaires, I know one who does Uber trips from time to time and others who spend all day on twitter and others juts get pissed in bars and eat at expensive restuarants. Even 'balling' as you put it can get boring if you do the same thing all the time.

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13 hours ago, HuskerDo2 said:

Not sure what you're reading (or smoking) that makes you believe the US dollar would lose 80% against the baht. It wouldn't lose amount or anywhere close to it against ANY other currency. The dollar is NOT collapsing against the baht. It ran up quite a bit in the last 18 months due to the Fed raising rates. It's now still higher than it was before the big run up. 

 

Relax. The USD will hang around current levels for many months. It's at times like this, when people like you, get nervous that they make a foolish decision with their money. You'll be fine and your $25k will not erode like you are afraid of. 

 

Hang in there and relax. Things will be fine.

Hi Husker. Thanks for your opinion. I don't buy insurance because I expect to have an accident though. I buy it in case there is a catastrophe. This is no different. I'm looking to protect myself in case the worst really does happen. The argument stands irrespective to the probability of it becoming reality. So I'm still looking to protect myself against this possibility.

 

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10 hours ago, buick said:

your thai broker should have something that allows you to make 'bets' on the exchange rate for THB/USD.  you made need to sign paperwork to get approval for foreign exchange trading.  talk to your broker.

Hi Buick. Thank you for your reply. Yes, I do have a derivatives account from a broker here in Thailand that allows me to buy and sell USD futures. And if I was going to long the dollar I would understand how this works. I just don't have any experience at shorting an asset, and I am trying to understand the basic concept. Clicking on a button to buy is easy, but how do I short a TFEX symbol when it isn't in my portfolio?

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