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Strategies & Market Trends : The New Economy and its Winners

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To: Keith Feral who wrote (47725)1/17/2009 11:09:13 AM
From: fedhead  Read Replies (1) of 57684
 
The definition of inflation is increasing quantity of money chasing the same or fewer goods. Right now due to the liquidation and deleveraging in the economy , every asset class is bieng sold and hence the dollar is strong. Once we are
out of this proces the immense amounts of dollars floating around wil cause prices to keep rising and rising. Indeed I fear at some point people may stop accepting dollar as payment especially overseas. I am surprised that people in India and China still continue to trade in their labour in exchange of something that we keep printing. In fact I would use this dollar rally to start exiting out of the dollar. Indeed before the credit crisis began their were some european countries where stores etc were reluctant to accept dollars as payment. I believe we will see the next phase of the commodities bull market at that time. The current policy is sowing the seeds of an even bigger currency crisis which has the potential to create great social unrest in terms of food riots etc etc.

Anindo
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