The other thing is that his logic works like this Circumstance A, Result C. He never bothers to build a bridge between A and C. Everything in this video is "This is a bad thing. This is a bad thing. This is a bad thing. END OF WORLD!"geekster wrote:He is absolutely correct in his analysis of why the US can simply print money to escape debt as long as we are the global reserve currency and that once we are no longer the reserve currency, that ability goes away.
Let's look at his reasoning, starting around the 30 minute mark in the video and going to the 40 minute mark. This is where he lays out the "symptoms."
He mentions that other country's retail outlets aren't willing to take american dollars rather than local currency. (let's not even get into what kind of rude asshole tries to pawn off an American dollar in some other country which has a perfectly stable currency of it's own.)
He then says that Amsterdam currency exchanges aren't willing to accept american dollars. A little research shows that that was true, but only during a brief period in 2008 and only the small independent currency exchanges were not willing to trade in dollars. Why? Because they weren't able to exchange the currency fast enough to beat the 10% fluctuations that the euro was experiencing against the dollar at that point: http://www.dutchamsterdam.nl/280-amster ... ollar-euro
He also talks about Mexico, and HSBC no longer willing to accept dollar deposits. Guess what, that wasn't HSBC's decision, that was a decision made by the Mexican government in order to fight money laundring: http://www.bloomberg.com/news/2010-05-2 ... ering.html HSBC branches operating in Mexico are in fact subject to mexican bank laws and regulations. I don't know why this is shocking or surprising to the commentator at Stansberry.
He lists China's dumping of dollars as a cause for concern. Yet his chart doesn't show China dumping the dollars, merely holding what it currently has.
He lists Iran's purely political move out of the dollar as a sign of the dollars lost power. But that move was really just iran shooting itself in the foot as a "fuck you to americans." Apparently shooting yourself isn't profitable for Iranians, and they have since converted back 45billion in Euros to dollars. http://www.lebanonwire.com/1006MLN/10060304STR.asp (Your trusted guy here seems to have missed that.)
He then goes to Michigan where some small town is using a barter economy. Nowhere in the original article he is quoting does it say that they aren't accepting dollars. Your trusted guy doesn't mind leaving you with that impression though in his video: http://www.connectmidmichigan.com/news/ ... ?id=481793
He then goes on to point out the wonder of "euros accepted" signs ("like this one" as he shows an obviously photoshopped image.) As if any store is going to turn down a 50 cent profit on each dollar if a person is willing to give the store the same number of euros as they would dollars. ie, 5 euros instead of 5 dollars, means that euro baring sucker just paid me USD$7.50
To quote directly from the article he mentioned (but forgot to mention that the euro denominations are being treated as though they are dollars with an exchange rate of 1:1 providing a HUGE profit to those accepting euros) "Bridgehampton, as first reported by Plum Hamptons TV, shows how far the mighty dollar has declined. It reads, "We now accept euros. Bills only. Change given in U.S. dollars." http://therealdeal.com/newyork/articles ... take-euros
He then mentions that the Chicago Mercantile Exchange (CME) is now accepting gold as payment, an outright lie. They accept gold as collateral, as well as many other financial instruments (including foreign currencies) http://www.businessandfinancialsense.co ... ollateral/
Ever write a paper and backfill it with data to support your conclusions? That's what this presentation feels like. He hints that he thinks Obama is a socialist. He mentions Ron Paul as some sort of oracle. He has an agenda, and you have not researched the content of this video or else you would have come to the same conclusion.