US dollar has no more value

[viper37]

The end is near.

Paul Mylchreest, of the Thunder Road Report, notes that a "very suspicious" 174 tonnes of gold compounds were exported to the Dominican Republican – "that well known hub of the world gold trade". Maybe these gold compounds really are used in gold paint and that artist who normally puts colourful tarpaulins around islands and buildings has painted the whole of the Dominican Republic gold," Mylchreest ponders. "I'll go and check Google Earth."
But, he reckons the transformation of the Dominican Republic into a key staging post in the cocaine trade between South America and the US, is a far more likely.
"Wouldn't it be interesting if drug smugglers have seen the writing on the wall for the paper dollar and will now only accept payment in gold bullion?"

[Berkut]

Yeah, that would be terribly interesting.

I think he might be onto something - perhaps drug dealers are the best evaluators of currency values.

[Darth Wagtaros]

They do have a keen sense of survival.

[The Minsky Moment]

People who want gold as an investment buy gold, gold shares, gold ETFs, even gold jewelry.  But not gold compounds - those are chemical compounds that have industrial, commercial or pharmaceutical uses.

According to USGS data, in 2006 the United States (alone) exported 1.46 million kilograms of gold compounds, of which over 100,000 kg went to the DR.  It appears from the historical data, that the DR has long been a heavy importer of gold compounds from the US - probably because they lack domestic production and transport costs from the US are relatively low compared with say Australia or South Africa.

The authors mentioned are both gold bugs who run newsletters promoting investing in gold.

[Siege]

There is always someone that comes and stop the fun with facts.

[crazy canuck]

There is always someone that comes and stop the fun with facts.

You mean like the time JR pointed out that a famous Jewish Philosopher wrote in Arabic?

[alfred russel]

There is always someone that comes and stop the fun with facts.

And it is usually JR. 

[The Minsky Moment]

If you guys want to go for a few more pages imagining fast-living drug dealers lugging around tons of chemicals around the barrios and secret airstrips of the DR, and tipping nightclub owners and bribing government officials with chloroauric acid, by all means, knock yourself out.

There are good reasons why drug dealers prefer cash.  If they didn't care for dollars I suppose they could always demand euros.

[Richard Hakluyt]

I had heard that the 500 Euro note was the note of choice for the wealthier drug dealer 

very portable.

[PDH]

I had heard that the 500 Euro note was the note of choice for the wealthier drug dealer 

very portable.

Maybe in third world shitholes like Belgium, sure - we are talking about the Caribbean here..

[jimmy olsen]

I had heard that the 500 Euro note was the note of choice for the wealthier drug dealer 

very portable.

Isn't that because of the size of the denomination though? If the US was printing lots of $500 bills it might be different.

[Barrister]

I had heard that the 500 Euro note was the note of choice for the wealthier drug dealer 

very portable.

Isn't that because of the size of the denomination though? If the US was printing lots of $500 bills it might be different.

Having seen the size of the 50s the 500 Euro note must be enormous.

[MadImmortalMan]

The authors mentioned are both gold bugs who run newsletters promoting investing in gold.

Yep. I was going to mention that part.

[DontSayBanana]

Having seen the size of the 50s the 500 Euro note must be enormous.

Then wouldn't it make more sense just to hijack the Publisher's Clearing House Sweepstakes checks? The giant ones that Ed McMahon used to deliver?

[Berkut]

I had heard that the 500 Euro note was the note of choice for the wealthier drug dealer 

very portable.

Isn't that because of the size of the denomination though? If the US was printing lots of $500 bills it might be different.

Having seen the size of the 50s the 500 Euro note must be enormous.

That is why it is so popular - doubles as a blanket when you are stuck out in the jungle waiting for the piper club to land.