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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 413.19+1.1%4:00 PM EST

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To: Haim R. Branisteanu who wrote (47579)3/20/2009 1:13:12 AM
From: elmatador   of 219050
 
The Unintended Consequences of printing. Foreign debts paid. In the past countries would always have high level of foreign debt that in time of crisis would balloon. In its turn that left them at the mercy of multilateral institutions and jacking up of interest rates and they were milked and in the process provided capital to create a recover in the center (OECD).

Printing allow them to pay foreign debts. Now there is no way those countries in the periphery can be fleeced to finance the recovery of the OECD.

Note please countries in the periphery are not yet skyrocketing like crazy because they used money to pay debts and to improve their infrastructure. But that soon will change.

In the next round of the Unintended Consequences of printing will be capital flowing in, not to pay foreign debts, but to finance the infrastructure of those peripheric countries and they will make the post war construction boom look like Kindergarten play.

As I keep saying: Know the root causes. Know what is not written in the popular press.
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