Capital Flight to What ??
Posted:
Wed May 23, 2012 5:55 am
by IdahoCopper
I've been thinking about the different currencies and where capital might go as the Euro gets deeper and deeper into trouble. The dollar can't last forever as the world's reserve currency, so where might be a real safe haven for capital, for the majority of people in the world who don't really understand PMs?
I sell more beef jerky to Norway than any other country outside the USA. It has a fairly small population so there has to be an underlying reason that is happening. Perhaps my beef jerky looks inexpensive to the average consumer in Norway, due to a favorable exchange rate.
Have a look at the five-year NOK/USD chart. Norway has a lot of income from North Sea oil, so its economy and currency are well supported.
http://www.x-convert.com/chart/USD-NOK?period=5yhttp://www.x-convert.com/chart/NOK-USD?period=5y
Re: Capital Flight to What ??
Posted:
Wed May 23, 2012 8:37 am
by Z00
The capital flight to the USD will continue as long as we are the best looking nag in the glue factory. After that, if they do not believe in PM's, I have no idea where it will go.
Someone with a crystal ball want to venture a reasoned guess? And explain the reasoning behind your hypothesis.
Re: Capital Flight to What ??
Posted:
Thu May 24, 2012 10:55 pm
by Kurr
I am not even sure I understand the question fully, but I'll let my ulcer ridden gut talk this one out.
Currencies seem to be tied to like you said countries, and even though the USA/USD seems to be "the best nag in the glue factory" right now, I think the thought process of this nation or that nation is getting to be antiquated with the rise of the global international corporations. The big ones, like GM, Apple, GE, Lockheed, Dupont and the like have showed that they have no soul or conscience and will gladly hop nations like a methed out frog on Lilly pads chasing imaginary bugs.
I do not see any stability in the currencies or the nations and very little loyalty to either, except in rhetoric and "the little guy" who has been brainwashed to chant "we're number one" all his life. The politicians will sell their own out, the corporations will sell their own out, the reserve bankers will sell their own out, and all will gladly cause instability if it suits the guy who gives them funding.
The only thing I see as ironclad guaranteed growth industry potential right now with a "lock" on the development aspects is..... war. Lots and lots of war, and no end in sight. Wars and rumors of war. So the only thing I think that capitol would see a "steady flight to, is the industries that support and develop the toys and technology we use to kill, the medicinal instruments used to sterilize the body or disrupt the minds, and any and all forms of surveillance tech such as drones, cct, facial recog, and satellites.
All the greatest achievements we have had as far as breakthroughs and developments for like the last 30 years or so are kept under lock and key by governments and the corporations that control them through their various mechanisms, not available or even known to the public for "national security" reasons, while we are fed a steady diet of Kindles, Ipads and Facebook IPO's.
To summarize: Capitol will fly to the most efficient forms of destruction. The international financiers have always loved a good war environment, they make money loaning to develop the blow em ups and they make money loaning to the build em backs after.
Just my .02
Re: Capital Flight to What ??
Posted:
Thu May 24, 2012 11:27 pm
by Z00
WOW
I am not sure I understand how you would make the war machine a "safe haven" for capital. Would you "invest" in it via the stock market or buy a stock of tanks or planes to sell at a profit later?
Have to sleep on that one.
Re: Capital Flight to What ??
Posted:
Fri May 25, 2012 7:47 am
by NHsorter
Z00 wrote:WOW
I am not sure I understand how you would make the war machine a "safe haven" for capital. Would you "invest" in it via the stock market or buy a stock of tanks or planes to sell at a profit later?
Have to sleep on that one.
You would have to invest in a company. Don't think for a second that they would ever let you have any of the good stuff.
Re: Capital Flight to What ??
Posted:
Fri May 25, 2012 10:34 am
by Z00
NHsorter wrote:Z00 wrote:WOW
I am not sure I understand how you would make the war machine a "safe haven" for capital. Would you "invest" in it via the stock market or buy a stock of tanks or planes to sell at a profit later?
Have to sleep on that one.
You would have to invest in a company. Don't think for a second that they would ever let you have any of the good stuff.
Then you are back to buying in the "market" which isn't "safe havening" your capital.