The Online Investing AI Blog

With a few months left, the United States has racked up more than a trillion dollars in debt. That means the Federal Reserve money-printing machines are in full gear.

And it opens up a whole litany of potential economic problems. One of the worst is the devaluation of the dollar.

The dollar–the very basis of our economy–is in jeopardy. Beyond that, our faith in fiat currency is in trouble.

George is all over it. He’s written about it here and here.

It’s good to talk about, but I’m a solutions guy. How can we actually make this situation better?

I think I have a solution. In a word:
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Investing, Money, Online Investing AI, US Economy currency, dollar, dollar bill, Money, value

After reading Rich Dad’s Guide to Investing In Gold and Silver last week, I did some research and thought about the whole concept of gold and sliver. It got me thinking about the value of  precious metals, and some of the ideas that we just accept about money.

Consider this. When was the last time you paid for anything with a silver coin whose value was determined by the amount of silver in the coin? The answer is probably never. Because we don’t use silver or gold coins for exchange anymore. And, the reason is quite subtle. The government has replaced these coins with fiat currency such as dollars.

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Investing, Money books, currency, derivatives, gold, Investing, rich dad, silver, Warren Buffett

Today I finished Rich Dad’s Advisors’ Guide to Investing In Gold and Silver, witten by Michael Maloney. I think it is a really great book. It’s not one of those crackpot hype books like so many others on the subject. It is a very interesting and thoughtful historical analysis of why the price of gold and silver could explode. In fact, it explains why gold could reach $100,000 per ounce and silver could exceed $1,000 per ounce.

It sounds crazy, but the author’s argument is very simple and backed up by historical example. He says that every time a government creates its own currency, the currency eventually collapses. And, often times it leads to the end of the government.

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Great Books, Investing, Money, US Economy currency, debt, gold, government, Investing, Money, psychology, rich dad, silver, Success

monstermunch99@Flickr

Online Investing AI is built around the concept that by eliminating greed and fear, advanced technology can better predict market moves. Imagine my dismay, then, when I discovered a far simpler way of predicting market meltdowns without any technology at all!

It doesn’t need AI, or any other form of advanced technology. You just need to check headlines every once in a while to read about building projects around the world.

Here’s the secret: whatever country is bragging about constructing the biggest building has the biggest potential for a bubble. I call this Big-Building-Bubble-Burst (0r 4B) theory.

Let me explain how I discovered this secret.

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Accelerating Technology, Business Strategy, Internet, Investing, Money, Online Investing AI, US Economy building, currency, indonesia, malaysia, petronas, singapore, towers, world's tallest building

bradip@Flickr

With trillions of dollars in currencies exchanging hands each day, the market for money draws considerable interest for traders.

The currency market is becoming more democratized, as well. Online brokerages offer nearly limitless access to currency exchanges, like Forex. Trading currency is also popular because there’s a potential to make a lot of money quickly.

If you don’t adjust for risk and prepare for emotionless trades, you can lose a lot of money, too.

Here’s the Globe Mail list of the top eight tradable currencies.

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Business Strategy, Investing, Money, Online Investing AI, US Economy currency, dollar, euro, forex, franc, pound, trader, trading, wealth, yen

Creative Commons

When the internet first started to develop, some entrepreneurs decided that there should be a currency just for online transactions. It made sense. People didn’t trust conducting transactions on the web and, of course, cash wouldn’t work.

Internet currencies, like Flooz and Beenz, were introduced. And dot-bombed.

Despite good intention and good ideas, online currencies never were adopted.

So that’s the end of the story, right? Not according to an article from Wired.

New currencies are starting to bubble up again. One currency is based on wireless phone minutes. Technology is literally becoming a currency. With less faith in paper currencies and a lack of malleability and portability of other forms of currency (gold and precious metals), a new currency–or new currencies–are more possible. In tightly controlled economies (China), new currencies will find a ready market, too.

And, if technology can create a currency, it can create technology to trade this currency.

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Accelerating Technology, Business Strategy, Internet, Investing, Money, Online Investing AI Beenz, currencies, currency, Flooz, forex, markets, technology, trading