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Strategies & Market Trends : Mish's Global Economic Trend Analysis
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To: russwinter who wrote (31477)6/6/2005 12:24:55 AM
From: mishedlo  Read Replies (2) of 116555
 
Are we debating value, your perception of value, the relative value of dollars vs say the YEN, your perception of the value of the US$ vs the YEN, or perhaps your perception of the value of the US$ vs gold? Then again are we addressing what has happened to any or all of those or are we debating what I believe is likely to happen which is and I repeat:

Money will be out and out destroyed in the upcoming housing debacle, and that no matter how you slice it, that is deflation. You keep telling me what has happened. I really think is not that relevant. I am telling you what I think WILL happen (and that is relevant)REGARDLESS of the relative merits of the US$ vs any and all of the above, simply because all currencies suck except for gold. Numerous other countries are in the same boat with the US in contrast to the Weimar republic which was running its printing presses non-stop in more or less isolation unless my perception of history is sadly misplaced. The US$ needs to devalue itself to somenthing and as best as I can tell the Euro is not it, the YEN is not it, the pound is arguably as bad if not worse, so against what is the US dollar headed to zero? If gold were to be priced at $5000 per oz tomorrow tell me what changes.

Furthermore you assume Bernanke will
1) do what he says
2) The money will actually be used

If the FED prints but the money does not get into circulation we will have the Japan affect of pushing on a string. I contend that in a housing slowdown there will be a dearth of both borrowers and lenders and many countries will be in the same boat. What then?

Mish
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