ABANDON SHIP! BRICS Just signed agreement to destroy the USD.

[Kiopa_Matt]

Ya but how are you going to pay for it? You make your money in USD right?

All our online monies are in USD...

Ok, we'll use online ad monies as an example. If the USD tanks, companies will adapt. They're not going to sit on the sidelines and say, "well shit, guess it's time to close the doors then". They'll forge new banking relationships, begin offering different currencies, etc. Obviously they'll take a huge hit, but they're not going to lay down and die. They'll work through it, and continue their business the best they can. For a tiny example, myself, and pretty near every small business owner on this forum can switch over to charging in another currency within about 30 seconds. That's what would happen, but scale it up to larger guys like Google and Facebook.

US residents are the ones who are fucked, because Americans have to buy their day-to-day living in USD. The rest of us will feel the aftershocks of that, and I could be wrong, but I'd say SE Asia will be one of the least affected areas. Same as the 2008 financial crisis. SE Asia took a hit, but nothing compared to what the West took.

Don't get me wrong, I understand the USD collapsing and experiencing hyper inflation will take a drastic toll on basically everyone in the world, but... that's just how it is. Some of you make it out like we're going to be living in a Mad Max environment shortly though, and that's just not true.

 

[geomark]

I was reading a little more about this. Looks to me like nothing concrete has been done yet. According to the Indian PM who hosted the meeting, "We have agreed to examine in greater detail a proposal to set up a BRICS-led South-South development bank funded and managed by the BRICS and other developing countries." So they are still in study phase. The US will be all over them to convince them to abandon it.

 

[hehejo]

Cheap energy should beat inflation worldwide

lol wut?

Do you know anything about economics at all or did you just wanna post something?

 

[teatree]

Guys this is just simply the start of HYPER INFLATION. Be prepared, food, gas and anything that's imported is going to rocket in price. Everything is based on oil. You can't import goods to the USA without using gas so that makes EVERY SINGLE method of transport go up in price as the GAS price rises.

Stop panicking! You can always switch to lorries powered by diesel engines - diesel engines can use any oil, including cooking oil, chip fat oil, and peanut oil (you guys grow lots of peanuts, right?)

As for cars - if you don't fancy a diesel car, you can always buy one of those VW flex-fuel cars that can switch between ethanol and petrol. I believe Brazil currently uses about 16 million of these (they are awash in sugarcane-based ethanol and their petrol stations all have ethanol pumps too).

There are always alternatives. The sky is not falling in.

 

[Your_Pal]

Loving it why so much hate on it? If BRICS want to do business in their local currency why Merica hattin?

 

[TheBrozar]

Very interesting about Utah.

How can we take advantage of these laws?

Is it possible to open an LLC in Utah to buy gold/silver and make profits without paying federal income taxes?

 

[DewChugr]

fuck that bet it all on mega millions. If you buy 1 million tickets you have a 1 in 175 chance of winning 500 mil. Seems like a good bet to me!

Yeah, and this would be the time 4 or 5 people won it and you'd be SOL.

 

[zimok]

The pacts are expected to scale up intra-BRICS trade which has been growing at the rate of 28 per cent over the last few years, but at $230 billion, it remains much below the potential of the five economic powerhouses. BRICS has set a target of $500 billion by 2015.

^ From the article.

It's obvious the fiat house of cards the US built for themselves won't last forever. How long it lasts depends on how fast 'trust' erodes.

This all means only one thing... Work harder than you've ever worked, build yourself certainty away from cities. If you have nothing holding you back, move far away. If you're determined to stay there's no better time than now to make money and trade up for living necessities. Invariably you will miscalculate how fast you'll use certain living necessities so there's an absolute need for precious metals as well. Don't tell anyone you've stocked up, are preparing or what you have.

Panic and fear are completely useless, be proud that you now have an possible impending doom to motivate you. Just imagine 80% of people are coming home tonight and watching whatever shit programming is on TV, while you're in the know...preparing...becoming ready.

 

[webjedi]

But just in case it gets that bad for most americans, is there a well-tested list out there of what you should buy to survive a real financial crisis if you only have 10K and see it coming? A real list of X number of bullets, X number of canned beans, etc..?

Are you fucking kidding Luke?

 

[jacky8]

lol wut?

Do you know anything about economics at all or did you just wanna post something?

oh yea hey economics expert please enlighten me

What i meant was that literally cheap as fuck energy should help tackle inflation big time

 

[geomark]

oh yea hey economics expert please enlighten me

What i meant was that literally cheap as fuck energy should help tackle inflation big time

Cheap in terms of what is the question. Energy could become very cheap for people who have something of value to trade for it, but if you are holding money that is viewed as nearly worthless to sellers then nothing is cheap. We can watch and see how fast the USD falls while hoping the US develops *cheap* solar (doesn't seem likely anytime soon) or hydrogen (even farther off?). Best energy hope for the US is probably oil shale and that seems like it might turn a lot places into somewhere nobody will want to live.

 

[blogginginc]

Remember, this will never happen overnight, as none of these countries would like to see their central bank US$ reserves to have no value at all all of a sudden.

 

[hehejo]

What i meant was that literally cheap as fuck energy should help tackle inflation big time

So you think the price of one single commodity will change the devaluation of paper money?

Price is set by supply and demand. So if something gets cheaper, it means the supply has probably been increased. This is a good thing and will make energy more affordable. But there is a large number of other commodities where the price will increase.

It will not 'tackle' inflation at all. It will increase what you get for your money though, but in the big picture this will not count for much and certainly not reverse inflation.

 

[geomark]

Remember, this will never happen overnight, as none of these countries would like to see their central bank US$ reserves to have no value at all all of a sudden.

Yeah, countries will gradually reduce their US$ reserves by using them to buy oil but not replacing them with more US$. So the decline might be gradual. But that's on top of the debasement from the Fed's monetary policies so the weakening trend seems set to accelerate.

 

[Flash4Ever]

10 years ago Euro was given to replace Dollar for most international transactions within few years. I remember all the agreements to buy oil in Euro, wasted paper.
Where is Euro today, even if is backed by the potential greatest consumers market of the planet?

BRICS agreement == a hole in the water

 

[dmnEPC]

So China is a BRIC's country? Nobody gives a shit about Brazil, Russia, inda, and South America, but China is a different story. Im sure you guys know way more about this than I do so correct me if I am wrong, but is this a play by China to setup the groundwork to become the Worlds Reserve currency?

 

[geomark]

So China is a BRIC's country? Nobody gives a shit about Brazil, Russia, inda, and South America, but China is a different story. Im sure you guys know way more about this than I do so correct me if I am wrong, but is this a play by China to setup the groundwork to become the Worlds Reserve currency?

GDP of Russia+India+Brazil is about the same as China's GDP, and the total GDP of the BRICS is about $12 trillion compared to the US at $14.6 (year 2010). And of course Russia and India have nukes. So I think a lot of people do give a shit about the rest of the BRICS.

And BTW, the "S" is South Africa.

 

[teatree]

So China is a BRIC's country? Nobody gives a shit about Brazil, Russia, inda, and South America, but China is a different story. Im sure you guys know way more about this than I do so correct me if I am wrong, but is this a play by China to setup the groundwork to become the Worlds Reserve currency?

China's currency doesn't float freely - it is "managed" against a basket of currencies primarily weighted in dollars and euros.

This makes it impossible to use a reserve currency. There is a capital control element to ensuring the currency doesn't float, which makes it useless - what would happen if demand for yuan to buy oil or whatever surged, but China refused to relax the capital controls to make the yuan available? It's precisely because of those risks that no sane exchange would price any commodity in yuan.

India's currency floats in a big range, but it's not entirely free floating - there are outer bands which gives the Indian govt the option controlling capital should they feel their economy is at risk. That rules the rupee out too as reserve currency.

The only threat to the dollar is the euro, which floats freely, and which has very big deep bond and money markets. But with the eurozone in the doldrums (and a possible breakup of the eurozone can't be ruled out), no sane exchange would price commodities in euros either.

Which leaves the US dollar.

You guys are panicking un-necessarily. Any change in reserve currency status is at least twenty years away or more, and it depends on either a) the eurozone getting it's act together (possible) or b) the Chinese deciding not to pursue their export model and letting the yuan float freely (unlikely) or c) the Indian economy growing strongly enough to allow it's govt to remove the outer band on it's currency and let it float freely (possible).

Of course if the US screws up royally then all bets are off - but at present, the US economy is growing strongly, while China's, Europe's and India's are slowing, so unless Santorum becomes president, you are all safe.

 

[SUP3RNOVA]

Wouldn't mind a WF survivalist thread. h8 on Dresden all you want but he has the common sense to put some of his money where it very well matter most.

Ya because your average citizen is going to need a ghillie suit and a small armory to survive in this hostile climate. It's wishful thinking that you're ever going to need to survive out in the forest and barter bricks of gold for leather strips and berries. The US dollar loses value and suddenly America turns into fucking Skyrim.

I've been hearing doomsday talk of the US for years and I'm sure I'll be hearing it until the day I die. Waiting for the US to fall is like waiting for Jesus to come back, you can be as prepared as you want but it's not going to happen in your lifetime.

Oh well, back to coding websites for money on my computer. I bet in 5 years I won't even be able to get a bushel of apples for this useless scrap of metal.

 

[efeezy]

Doomsday prepping is the new Acai...congratulations. You've just been rebilled.