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Strategies & Market Trends : Mish's Global Economic Trend Analysis
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To: koan who wrote (97579)5/15/2009 10:19:00 PM
From: niceguy7671 Recommendation  Read Replies (1) of 116555
 
History demonstrates that every country that has experienced a serious bout of currency devaluation arrived there by doing exactly what the US treasury is now doing: buying their own long term bonds (because no one else wants to hold them)

On Mar 19, 2009 the status of the US changed irrevocably as the Fed chose to step over the line into total financial imprudence. That date/act signaled the beginning of the end of the US dollar as the preferred global currency. Since then there has been increasing noise about alternative global currencies accompanied by major buyers of treasuries (i.e. China) backing away from US investments.

Interest cost on US debt is already alarming. If interest rates increase, the demise of the US Fed just accelerates.

The Fed no longer has any tools in its toolkit to fight its economic decline so has begun printing dollars with reckless abandon, an irresponsible decision that ensures the demise of the US as the world's premier economy.

So no, the greenshoots media blitz is just not believable. The burden of federal debt has reached the theshold point of no return and consequently the last thing anyone should hold is the US paper currency.

All of the foregoing points to commodities as the preferred asset of choice. My preference is gold as I like "the store of value" history of gold and am accumulating jsmall producers in safe environments as a result.

Thanks for mentioning GBGA.wts. I'll look at Great Basin Gold over the weekend along with a couple of others.



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