The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: dybdahl who wrote (9500)	7/12/2008 12:10:57 PM
From: The Wharf	Read Replies (2) of 71475

Roskilde Bank is not big - it's bottom line is $9 billion and they have 650 employees. It is not the kind of bank that people know about. Little banks to me have very little impact on a Nation but they are indicative that problems are brewing. When this happens you know no one wants to buy them large banks are too concerned about their own asset base. Housing bubble and subsequent mortgage bubble is world wide as is the basic method of operation of the US banking system. Sale of risk has been very lucrative up until now. Little bank means very little to an nation they can afford to let it fail. Difficult part is that gov is the result of the acts of all banks though there are minor differences between operations banks became the cuase and result of currency creation. This was not yesteryear where loan was asset investment but it was increased loans meant increased profits for banks. Here we have very low interest and we as all world banks use the concept that interest can adjust the economic performance. . Inflation you raise interest rates possible depression you drop. Just doesn't work as currency is actually the result of people who use it to buy and sell.. No barter in the present situation we people are all in. . Just stop the barter process and attempt to fix the debt problem that comes from currency creation. . Can they? I for one do not honestly know If everyone is in the same situation no one is going to publish that fact. All banks have the same problem though some to a lesser degree than others. Nations however have to service that debt even if it means severely diluting value of their currency. Currency being created to service this is a non event as it is not about to create inflation in the general public as it can't move it is only being created to clear debt. What it does do because it is on a national level and traded in a world market is destroy the value of its own nations currency and totaly dilute the value of debt held outside of the nation.. Gov in the mean time find itself at odds with corporate governance who must keep tabs on debt as well as wages I think we will see many stock buy backs but if you factor in currency there is very large loss question. CB's have sold off gold and that impossible to pay debt they must factor in to future performance. To me it seems they are terrified. As long as they all sit in the same boat there is safety in numbers Gawd forbid someone or nation jumps out of that boat. You now have a real loss of 1bil in Indy mac that is what will be the start of the real drive of gold Future dollar value in any nation is based on potential performance enormous debt requires incredible performance or inflation so you have more dollars that are less valuable paying off old debt. Mature nation can't afford this inflation wages scale is their problem. Long story short what to do when you are the holder of way to much US currency based debt. Corp has problem buy stock back but tightening of lending is not going to help economy. US consumers are faced with two problems wage competition and credit cards galore. Consumers cannot consume as credit tightens Credit card payments have been kept up to date as good credit scores gets you the rental unit you need when you have been foreclosed on. Potential huge problem here utterly no tax advantage rents in my area can be equal to the low interest use to be mortgage payment but no write offs tax wise and no end of the year benefit. Hard to know how large the impact will be. Fed wants fluid but fluid is what created this mess to start with. Our currency has been very fluid you could almost say a rushing river is what it was. It is the consumer state that is the problem little people and little banks.

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