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Politics : Welcome to Slider's Dugout

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From: surelockhomes7/26/2006 11:21:53 AM
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Billions trumps Millions

To me what this means is that there are two kinds of dollars out there. Strong dollars and temporary weak dollars. The weak dollars are a result of people spending dollars that they don't have. Dollars they have borrowed from pooled lending from people who aren't paying attention to whom they are lending, and for what it is being used for. These weak phantom dollars appear to be just as authentic as real dollars when used to purchase services and goods, and these additional dollars have been what has driven up asset prices and the cost of commodities. But these weak phantom dollars have a limit and can disappear when borrowers stop making payments on their loans. So when a lot of these phantom dollars disappear so does their dilutive effect on real dollars, and thus you have stronger dollars. The real dollars held will be all the more valuable when the phantom dollars disappear that have been driving and holding up prices of assets, commodities, stocks, etc., as the price of these things decline.
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