Trapshooters Forum banner

Status
Not open for further replies.
1 - 12 of 12 Posts

·
Registered
Joined
·
3,064 Posts
Discussion Starter #1
Federal Reserve Board signaled it will be buying massive amounts of US Government debt(one-half $trillion). Expect the value of the dollar to drop 20%.

So what's this doing in the shooting threads?

For shooters that means the price of imported ammo will go up, and as it goes up expect Gun Clubs, Estate/Top Guns, and Universal/Super Targets and other US promo ammo priced to compete with the imports to go up as well.

Imported lead will be up too. Like Hodgdon Clays line of powder? Think Alliant. But expect Alliant to raise prices as the competitive pressure from Hodgdon wanes.

Cheddite, Nobel Sport, Fiocchi primers will be up too.

Thinking about a new Kriegoff, Perazzi, Browning, or Beretta? Expect big price increases on them as well.

Does the price of foreign oil affect shooting?
 

·
Registered
Joined
·
1,738 Posts
I saw on my Krieghoff dealer's website, the Prosporter will be about $11,000 starting after the first of the year. I assume other models will likely be raised as well.

What ticked me off about Perazzi is that, as told by from a Perazzi dealer, if I ordered a new Perazzi before Jan. 1 2011, I will still be charged the price increase (most likely 2% increase). Kolar and Krieghoff dealers will honor a 2010 price if you order it before Jan. 1, even if the MSRP gets raised after the first of the year.
 

·
Registered
Joined
·
3,064 Posts
Discussion Starter #5
It's probably too late to buy gold. Gold was jacked up when to the smart and financially able saw trillion dollar deficits would mean massive debt purchases by the Federal Reserve Board, and the consequent inflation and dollar devaluation. We haven't seen the inflation yet, but that virus probably takes a while to show itself. The bad new is that it will be as slow to wash out of the system even if monetary changes are made.
 

·
Registered
Joined
·
940 Posts
The Quantitative Easing that mrskeet410 referred to is just another way to say "printing more money". It is about the last bullet the Fed has in its efforts to boost money supply, stimulate private lending and ultimately, hopefully increase economic activity.

Unfortunately, it didn't work for Japan in the 90's or the Weimar Republic in the early 1900's. All that followed was a seriously devalued currency and hyper-inflation.

Guess Uncle Ben Bernanke thinks he knows more than the others. Or he could just be positioning Goldman for another year of record profits.

Either way, Hang on to your asses boys....this ride ain't over yet.
 

·
Registered
Joined
·
940 Posts
JerryP,

What about the effect of a lower dollar on the price of a barrel of oil? What part of our country's manufacturing base is unaffected by increased energy prices?

And please tell me, what will that do to the prices of your potential exports?
 

·
Registered
Joined
·
7,025 Posts
Fed Easing May Mean 20% Dollar Drop: Bill Gross

The dollar is in danger of losing 20 percent of its value over the next few years if the Federal Reserve continues unconventional monetary easing, Bill Gross, the manager of the world's largest mutual fund, said on Monday.

"I think a 20 percent decline in the dollar is possible," Gross said, adding the pace of the currency's decline was also an important consideration for investors.

"When a central bank prints trillions of dollars of checks, which is not necessarily what (a second round of quantitative easing) will do in terms of the amount, but if it gets into that territory—that is a debasement of the dollar in terms of the supply of dollars on a global basis," Gross told Reuters in an interview at his PIMCO headquarters.

The Fed will probably begin a new round of monetary easing this week by announcing a plan to buy at least $500 billion of long-term securities, what investors and traders refer to as QE II, according to a Reuters poll of primary dealers.

"QEII not only produces more dollars but it also lowers the yield that investors earn on them and makes foreigners, which is the key link to the currencies, it makes foreigners less willing to hold dollars in current form or at current prices," Gross added.

To a certain extent, that is what the Treasury Department and Fed "in combination" want, said Gross, who runs the $252 billion Total Return Fund and oversees more than $1.1 trillion as co-chief investment officer.

"The fundamental problem here is that our labor and developed economy labor relative to developing economy labor is so mismatched—China can do it so much more cheaply," he said.

Many Americans believe that the Chinese government is manipulating its currency and in effect stealing away American jobs and throwing the U.S. in an ever-deepening trade deficit.

But Gross said this is a byproduct of a globalized economy.

"It is a globalized economy of our own doing for the past 20-30 years. We encouraged all of this, but it is coming back to haunt us. To the extent that Chinese labor, Vietnamese labor, Brazilian labor, Mexican labor, wherever it is coming from that labor is outcompeting us and holding down our economy," he said.

Gross added: "One of the ways to get even, so to speak, or to get the balance, is to debase your currency faster than anybody else can. It's a shock because the dollar is the reserve currency. But to the extent that that is a necessary condition for rebalancing the global economy over time, then that is where we are headed."

"Other countries and citizens are willing to work for less and willing to work harder—and we forgot the magic formula somewhere along the way," Gross said.

In that regard, Americans should be investing a lot more overseas than they are to find growth as the U.S. remains in a slowish-growth environment, he said.

"Pension funds and Americans, in general, have a problem because their liabilities are dollar-denominated. It's probably worth the risk of getting out of dollars and getting into emerging countries and going where the growth is. All of which entails risk relative to the home country. But there's probably a bigger risk in simply staying comfortably within the confines of dollar-based investments."
 

·
Registered
Joined
·
1,750 Posts
tanda1 , Of course, the price of oil will rise, along with everything we manufacture and import. But I would think a lower dollar would still mean cheaper exports.
 
1 - 12 of 12 Posts
Status
Not open for further replies.
Top