Greenweenie's money laundering is NOT working. There was WAY too much debt created in the "new economy" for the Clinton cigar-smoking parties. Now, Mr. Greenbean must deal with declining dollar and soon, rising interest rates. What happens then, Mr. Woolly? I guess that a massive number of these loans cannot then be repaid? So who suffers? Who will taste the bitter pill of defaulting loans? Oh, has anyone over-borrowed for real estate lately? Won't our good foreign friends also begin to pull out some of their money little by little as the dollar begins to look as crooked as Mr. Bill's carrot stick? As more and more loans default, will this not lead to a near-depression? Will we have stagflation also? Is this not an endless cycle (at least for a few years) where each part of the puzzle feeds on another -- dollar weakens, foreign money leaves, loans default, prices of basic materials rise while prices of "toys" and things people don't need DECLINE (ALL electronics and software -- hello MSFT, DELL, CSCO, Best Buy, EBAY, NVDA, INTC, or should I just say, American New Economy?)?
You can bet Greenshrivel will print until they pry his cold hands off the press, and Congress will borrow until the dollar is used as wallpaper. By this time, my hope is that history will repeat itself (it does tend to do that no matter what Kudlow and Cramer say) -- even though it has been a long time coming -- and gold and silver will be seen as the only safe haven. Gold and the Dow returning to parity at around $3000 sounds okay to me. How about you?
Of course, an extraneous event would put this process into hyper-speed. But I cannot think of anything potentially negative of significance right now in this economic recovery.
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I remain,
SOROS |
