The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: niceguy767 who wrote (19858)	4/21/2009 5:26:29 AM
From: axial	1 Recommendation Read Replies (1) of 71456

"Today may mark the first day, after this most recent market engineered hallucination, of reconciliation to economic reality." It may; it may not. What do other nations know today that they didn't know 2 months ago? Or 4? If they were going to stop inflows, why didn't they stop then? Chinese have switched from long-term to short-term, but they haven't stopped. Neither have the Russians. Chinese are deploying their reserves in a manner least harmful to USD. Certainly they're making deals, but why shouldn't they? --- Inflows to the US can stop any time. We all know that. What we don't know is why they've continued since last September. There are huge global risks and a lot of unknowns. However, it also appears that restraint is being exercised by global economic players. It's not clear - not a certainty - that inflows to the US will stop. They haven't yet. Many other nations are in a perilous position, and the global economy will take a huge, irreversible hit if the US crashes. Nobody wins in that scenario. The certainty of a global economic crash against the possibility that in time the US can extricate itself from its predicament with sustainable policies. Those are the choices. Anyone who has read international comments knows that the US is in perilous economic shape. They know. They knew 6 months ago. It's not clear why they'll change course 2 or 3 months from now, when they could have done so half a year (and many hundreds of billions) ago. Has anyone tried to answer that question? The question is whether the US is undertaking sustainable economic policies. If the world sees the answer is "yes", then inflows will continue. If not, the the dire prophecies will be fulfilled. There'll be a world of hurt. Literally. Jim

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