The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: Real Man who wrote (6891)	5/5/2008 1:05:25 PM
From: John Vosilla	of 71456

'This is not hyperinflationary, but definitely as far from deflationary as it can get' I guess some are still not not paying attention to oil prices, food prices, our mounting twin deficits, the broad money supply growth or the continued spread of US consumerism on a planet with limited resources.. Ah yes even average rental rates for property just hit an all time high per the WSJ on Friday.. Folks are confusing a depression in new home construction that will result for years to come from the misallocation of capital into RE for what transpired in Japan in the 1990's or the US in the 1990's. Anyone wondering why our federal government has an open border policy encouraging Latinos to come to this country and grow our population base doesn't understand that is another one of the mechanisms to ensure a depression does not happen here.. No 'deflationist' has ever explained to me why we didn't have deflation in the 1990's even with tight money supply growth, strong dollar, a collapse in commercial RE nationwide of 60-70%, a drop in residential property values of 30-40% in our three largest state, collapsing energy and agriculture prices and Japan in their own depression.. The wild cards for now are the regional collapse in home prices and the record low yields on long term treasuries still to be reconciled. A protracted period of below trend growth in new construction and an eventual ending to the 15-30% back end monetezation along with a much higher cost to build infrastructure and continued loss in purchasing power of what your dollar buys should eventually correct these temporary imbalances.. Ironic the bond bubble now in a 28 year run even though disinflation ended in 2003 is the biggest bubble of all yet to pop<g>

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