Iran opens New Nuclear Reactor Today!

[royr]

http://news.yahoo.com/fc/world/iran

This is an open defiance of the international treaty against nuclear proliferation and puts the ability to build the atomic bomb close within reach for Iran. We are living in interesting times - the dollar continues to decline as international markets loose faith in the US and it's ability to sustain huge trade and budget deficits both internally and with the international community. Eyes open Titan Talk folks - just because Iran is on the other side of the world does not make this event less significant to us in America. Time to watch your collective "assets" and safe guard your future and that of your children if you are blessed with little ones. Got gold? Even silver will do in a pinch! - if not - look into getting some of each quickly. To older Americans like myself this unfolding senerio smacks of 1974-1980 - stagflation with higher fuel costs. The housing maket is falling rapidly and that is NOT good for any of us. Historically, in the time frame from 1974 -1980 Gold went from $35 per ounce to over $800 and Silver from $1 per ounce to over $50. They both followed crude oil straight up the ladder with inflation. Just a little heads up information. I have nothing to sell - so don't ask.

[LANDMAN]

Are you serious. Where is the best place to buy gold?

Thanks in advance.

[37L1]

EEEEKK! The sky is falling!

[chunko]

Thanks for the update Roy...Nice post.

My thoughts:

Point A)

Iran is in defiance: Agreed.

Point B)

This will have a large impact on oil: Disagree. Irans bull$hit is factored into the oil futures and our current prices.

Point C) This will affect our currency: Not likely. Right now China makes or breaks US Currency with their huge holding on US dollars. People really need another choice to drastically sink the dollar. China does not have a free floating currency so they are out...the EU is a growing power but still in its infancy which worries many.

Point D) Housing market is starting to fall: It's about time damn time. Housing prices here on the west coast have been rising about 20% year. If you already own a home..that's great free equity...if you are young and looking to buy its crazy...450 for a starter home???

Everything will be ok though...cause we ousted Sadam...just ask my best pal bushy...there's nothing to fear in the middle east now.

[royr]

Originally Posted by adavis99

Thanks for the update Roy...Nice post.

My thoughts:

Point A)

Iran is in defiance: Agreed.

Point B)

This will have a large impact on oil: Disagree. Irans bull$hit is factored into the oil futures and our current prices.

Point C) This will affect our currency: Not likely. Right now China makes or breaks US Currency with their huge holding on US dollars. People really need another choice to drastically sink the dollar. China does not have a free floating currency so they are out...the EU is a growing power but still in its infancy which worries many.

Point D) Housing market is starting to fall: It's about time damn time. Housing prices here on the west coast have been rising about 20% year. If you already own a home..that's great free equity...if you are young and looking to buy its crazy...450 for a starter home???

Everything will be ok though...cause we ousted Sadam...just ask my best pal bushy...there's nothing to fear in the middle east now.

Advis - are you aware that China has allowed the yaun to float against a market basket of currencys (including the US Dollar) and has risen in a "controlled" fassion against the dollar steadily for several months - and is poised to continue it's advance? Also, China has contracted to purchase a great deal of oil from Iran and will happily accept any shipments that fail to be directed at the US in the future at full market price. Ever since they (China) was blocked from purchasing Unical in the US, China has been throwing US dollars around the globe picking up a number of mining, oil, gas, and oil service companys as quickly and quietly as they can manage. All this has not helped the US dollar, because as they Chinese government spends down US dollars held in reserves, they are not replacing them with new Treasury Bill purchases or cash dollar reserves - instead they seem to be leaning toward gold holdings - as are the Russians, who publically anounced their intent to double their own national gold reserves from 5% to 10% of total holdings over the next few years - also by spending down US Dollar reserves. Follow the money - and solve the crime. The crime is being commited against the US working class who are quickly seeing higher prices on all imported and most recently - domestically produced goods and services. Our own government will be fine - they will just tax harder and continue to spend - however - what you and I can buy with what we have left over after we pay those taxes will result in a much lower standard of living for us in America if this trend continues on its present path.

[Carbeaux]

Ah, our inexorable march towards socialism continues. I'm glad I won't live to see the world my grandchild will retire in. IF there's such a thing as retirement in her day.

[BKW]

Originally Posted by royr

http://news.yahoo.com/fc/world/iran

This is an open defiance of the international treaty against nuclear proliferation and puts the ability to build the atomic bomb close within reach for Iran. We are living in interesting times - the dollar continues to decline as international markets loose faith in the US and it's ability to sustain huge trade and budget deficits both internally and with the international community. Eyes open Titan Talk folks - just because Iran is on the other side of the world does not make this event less significant to us in America. Time to watch your collective "assets" and safe guard your future and that of your children if you are blessed with little ones. Got gold? Even silver will do in a pinch! - if not - look into getting some of each quickly. To older Americans like myself this unfolding senerio smacks of 1974-1980 - stagflation with higher fuel costs. The housing maket is falling rapidly and that is NOT good for any of us. Historically, in the time frame from 1974 -1980 Gold went from $35 per ounce to over $800 and Silver from $1 per ounce to over $50. They both followed crude oil straight up the ladder with inflation. Just a little heads up information. I have nothing to sell - so don't ask.

Silver was being manipulated at the time by the Hunt Brothers of Texas. Anyone who tagged along...lost big time.

[Helinut1970]

Aaaahhh Yes GOLD! The only real world currency! Think your safe with a lot of "green" paper in the bank? LOL When the going get tough thats all it is. Green paper. Its no better than the piece of paper that says you have money in the bank. Time to start buying gold. Its about to hit the fan.

[konigfritz]

Can we just nuke Iran? Then they would have real Nuclear program. LOL

[Carbeaux]

^^^I think we can, but we'll definitely need to get our guys out of the area before we turn Iran into glass. And that's "nucular" program.

[chunko]

Originally Posted by royr

Advis - are you aware that China has allowed the yaun to float against a market basket of currencys (including the US Dollar) and has risen in a "controlled" fassion against the dollar steadily for several months - and is poised to continue it's advance? Also, China has contracted to purchase a great deal of oil from Iran and will happily accept any shipments that fail to be directed at the US in the future at full market price. Ever since they (China) was blocked from purchasing Unical in the US, China has been throwing US dollars around the globe picking up a number of mining, oil, gas, and oil service companys as quickly and quietly as they can manage. All this has not helped the US dollar, because as they Chinese government spends down US dollars held in reserves, they are not replacing them with new Treasury Bill purchases or cash dollar reserves - instead they seem to be leaning toward gold holdings - as are the Russians, who publically anounced their intent to double their own national gold reserves from 5% to 10% of total holdings over the next few years - also by spending down US Dollar reserves. Follow the money - and solve the crime. The crime is being commited against the US working class who are quickly seeing higher prices on all imported and most recently - domestically produced goods and services. Our own government will be fine - they will just tax harder and continue to spend - however - what you and I can buy with what we have left over after we pay those taxes will result in a much lower standard of living for us in America if this trend continues on its present path.

Good info Roy...thanks

I haven't been following currency since I got out of business school and things have certainly changed.

[chunko]

okay Roy...I'm confused...googled the subject and this seems to contradict your last post...

China To Move (Slowly) On Its Currency
FN Arena News - August 23 2006


By Chris Shaw

For those waiting on the Chinese to move to a fully flexible exchange rate Danske Bank has some advice - don't hold your breathe as it is not going to happen in the short-term.

In the bank's view the hurdle remains the choice China has made between the three economic objectives of capital mobility, monetary independence and a floating exchange rate, as these it refers to as the "impossible trinity" in that only two of the three are achievable at any one time.

China has chosen currency stability and independent monetary policy, meaning it has retained some control over the mobility of capital. Danske Bank points out though this is not an effective policy in what is now a global financial structure, particularly as it can result in an inefficient allocation of capital.

Evidence of this is being seen daily in China as some industries continue to grow strongly despite government attempts to slow them, while at the same time the gap between the growth prospects of urban and rural citizens continues to widen.

Despite this policy approach, Danske Bank expects the Chinese to gradually incorporate greater flexibility into its exchange rate policy, which while purportedly set against a basket of currencies has in reality been nothing more than a peg against the US dollar. The likely driver of this increased flexibility is the increased attention its exchange rate is likely to receive in coming months thanks to a number of political events such as the G7 finance ministers meeting and the IMF annual meeting, both scheduled for next month.

The attention these bring and the pressures being exerted on the Chinese to revalue their currency are likely in the bank's view to result in a gradual appreciation against the US dollar, with the first step likely to be a widening of the trading band.

This greater flexibility leads the bank to forecast a renminbi rate against the dollar of 7.90 in three months, 7.80 in six months and 7.65 in 12 months, against a level of just under 8.00 now. So yes, things are likely to change in terms of the Chinese currency according to Danske Bank, just a lot slower than most in the market (and particularly in the US) would like.

[royr]

Quote: This greater flexibility leads the bank to forecast a renminbi rate against the dollar of 7.90 in three months, 7.80 in six months and 7.65 in 12 months, against a level of just under 8.00 now. So yes, things are likely to change in terms of the Chinese currency according to Danske Bank, just a lot slower than most in the market (and particularly in the US) would like.

Adavis - No - this article you found illustrates exactly what I am saying - just from the other side of the currency conversion table. They are predicting that it will take fewer chinese units of currency over the course of a few months time to buy the same dollar. I was working from the oposite side of the same equation - as I am holding US dollars. Your article correctly is stating that it will cost China less of there own currancy to purchase each US dollar they wish to hold over time. Think of it this way - today you can buy almost 8 pieces of candy for $1, but in a few months the same $1 buys you 7.6 peices of candy. Same $1 - same candy - what happened? You guessed it - the $1 buys less than it used to. Run the math - and then be ready. I am not suggesting selling your home and living in your Titan with a toolbox full of Gold bars - just saying that it is a good time to think about a little insurance for safety if you can manage to do so.

[chunko]

Sorry man you say tomato i say tohmahto...

I see the yuan rising in relation to the dollar as a good thing...it will make it possible for US manufacturing to compete and good for the average joe who has to work for a living. Also, with the rise of the chinese middle class maybe we can finally export some stuff to them.

Only time will tell who is right eh?

One thing is for sure...china does what china wants...its been that way for thousands of years...and I don't see them giving two $hits about how what they do affects the U.S.

[konigfritz]

Alright Smartypants es seess ess! Y'all are making my head hurt!