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Strategies & Market Trends : The coming US dollar crisis

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To: dybdahl who wrote (7448)5/18/2008 7:20:05 PM
From: Real Man  Read Replies (3) of 71475
 
US is certainly very different from other countries. The main
difference is the size of the economy and the reserve
currency status of the dollar. Here is John Williams' chart
of REAL US GDP. No real growth, all nominal growth of the
economy comes from inflation. His analysis, perhaps, overstates
inflation, but nobody knows the real number. Negative real
rates can sure ignite it. Since the information is missing or
is a lie, while the information provided by the bond market
is likely an expectation value for the government number, one
is left to wonder... Historically gold was a good gauge of
inflation, but only long term. When the dollar was tied to
gold, inflation was zero for 300 years.



However, the known BLS "revisions" to lower the CPI number
and understate inflation/overstate real growth of the US
economy is a fact that is very inflationary itself.

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