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Old 08-09-2011, 11:18 AM   #1

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US Dollar Becoming Toilet Paper

I know the title is a bit dramatic, but I was wanting to get other people's thoughts on what they do with their USD when the value is taking such a nasty hit, and who knows how long it will stay depressed. As you may have surmised by my screen name I'm new to the game, so I am interested in the opinions of more experience operators.

Is this even a factor to those folks who trade in USD?

How do you hedge against a falling dollar?
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Old 08-11-2011, 06:39 AM   #2

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Re: US Dollar Becoming Toilet Paper

I think it's more than just the $. Paper money is just a fabrication and can be printed like monopoly money. Gold for example is giving a fairly clear indication of what people think about this. It has intrinsic value and as far as I know, alchemists haven't been able to turn lead into gold so far!

I think the important thing to try to maintain when it comes to paper money is relative stability. We don't want any major currency out of control and value needs to be changing steadily. That way, economies adapt over time. Also, it forces you to look to real assets which move in proportion to currencies(and perceptions).
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Old 08-21-2011, 12:39 PM   #3

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Re: US Dollar Becoming Toilet Paper

Quote:
Originally Posted by NeoTrader »
How do you hedge against a falling dollar?
See here, plenty of options: http://www.traderslaboratory.com/for...investing.html
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Old 08-21-2011, 01:50 PM   #4

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Re: US Dollar Becoming Toilet Paper

Quote:
Originally Posted by NeoTrader »
I know the title is a bit dramatic, but I was wanting to get other people's thoughts on what they do with their USD when the value is taking such a nasty hit, and who knows how long it will stay depressed. As you may have surmised by my screen name I'm new to the game, so I am interested in the opinions of more experience operators.

Is this even a factor to those folks who trade in USD?

How do you hedge against a falling dollar?
Tangibles have been the way to hedge.

The dollar has been falling steadily since the FED learned that it could influence interest rates. Since about the 1920's the USD has lost about 95% of its value. It is not a new phenomena, though its decline might be accelerating since at this point we are plainly fabricating money.

But life is good for now.
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Old 08-22-2011, 01:50 PM   #5
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Re: US Dollar Becoming Toilet Paper

Quote:
How do you hedge against a falling dollar?


Well it's not Swiss Francs

The extreme (until it's not) version

Tier 1 Food and Water
Tier 2 Guns and Ammo
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Tier 4 Elevated, cautious Leverage (including FX Positions - but remember they're all in a race to the bottom)
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Tier # Toilet Paper
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Old 08-23-2011, 06:10 AM   #6

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Re: US Dollar Becoming Toilet Paper

interesting stuff thanks for the good post
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Old 08-23-2011, 10:40 AM   #7
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Re: US Dollar Becoming Toilet Paper

Not sure this one would actually be a hedge on dollar and dollar holdings - but it is the best idea I've had in the last 15 minutes...

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Old 09-03-2011, 10:30 PM   #8

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Re: US Dollar Becoming Toilet Paper

What's wrong with Toilet Paper? I like toilet paper. I don't like the other options.
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