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Politics : Welcome to Slider's Dugout

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To: SliderOnTheBlack who wrote (6706)10/18/2007 10:28:06 AM
From: Crimson Ghost   of 50746
 
Slider:

There are some serious negative impacts from the Fed's inflationary policies -- to wit surging costs across the board in many industries. Costs that are surging faster than prices can be hiked.

We are now in a full fledged crack up boom. I doubt if one American in a hundred believes the phony CPI numbers put out by the Ministry of Truth.

if the Fed continues on its current course they risk a rapidly accelerating loss of confidence and a dollar crash. Why would any rational investor hold an asset that is on its way to the toilet?

The idea of a slow gentle drop in the dollar becomes more absurd with every day that passes. And a dollar crash inevitably means loss of reserve currency status. Which in turn means that huge trade deficits can no longer be financed except at much higher interest rates.
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