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Strategies & Market Trends : The coming US dollar crisis

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To: DebtBomb who wrote (17353)2/6/2009 8:45:38 AM
From: Real Man  Read Replies (3) of 71454
 
Cause folks tend to look at prices in dollars, and all
that is fake. To them the crash started in 2007. In reality
the crash started in 2000, we are 9 years into it. Sharp
declines could be a signature of the end of the big decline
rather than the beginning, and they happened just cause
the dollar rallied. In 1929 the dollar was as good as gold.
The home prices in gold did not change for 300 years while
US was on gold standard and are now close to historic
average. Spoos priced in gold is closer to the lows of the
range than to the highs. While we will likely overshoot, we
are not living in 1930. The real problem is that we need
to trust these same folks who got us into this mess to get us
out through central planning. Oh. I'm gonna barf. -g-

What could technically happen is another inflationary
bull for 5 years, followed by another deep recession. Then
stock prices would be deeply undervalued through dollar
devaluation, rather than direct drop.
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