Yeah, hope springs eternal, LOL.
Does anyone find this a really schizo experience? We're well into the crisis. Politicians worldwide are making grandiose efforts and reassuring noises, like it could come out all right.
On the other side of the Looking Glass, knowledgeable people are saying "It's over" (surprise, Roubini backed off a bit).
Will the US will inflate like crazy? Logic says yes; it can't defy gravity much longer. What about countries that aren't inflating? Wiemar Germany went to hell in a handcart, but it didn't take everyone else with it.
But the deutsche mark wasn't at the center of global finance, either.
It only makes sense that countries holding USD reserves don't want to see the value inflated away - but if they start selling out, they lose regardless. So everyone's paralyzed, and the news just keeps getting worse.
OTOH, given enough time, all those US trillions don't necessarily turn into losses. Some of it could result in gains, others are taxpayer guarantees that won't necessarily be needed, depending. That's the prayer, anyway.
OK. Everybody take a valium.
Jim |
