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Strategies & Market Trends : The coming US dollar crisis
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To: Rolla Coasta who wrote (24014)11/6/2009 12:19:53 PM
From: Real Man  Read Replies (1) of 71412
 
It's not completely true, printing is levered up.

Suppose you have the base of 1 Trillion and are 40x debt-leveraged.
You get 40 Trillion

Now, the leverage declines to 20x and the Fed prints 2 Trillion.
You get 60 Trillion.

Indeed, a complicated process, but it's difficult to say
who wins. Depends on relative size. I'd say printing is getting
the upper hand since March.

Then of course, sometimes you start the printing press and
interest rates shoot up along with your debt burden. That
would be the BK known as the currency crisis.

The problem with deflation argument is that in the absence
of gold standard the fiat currency
itself is debt, zero maturity. What does it mean when
a country itself is broke? That does not always happen,
thank God. -g-
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