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Strategies & Market Trends : The coming US dollar crisis

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To: GST who wrote (24375)11/18/2009 1:34:09 AM
From: Skeeter Bug2 Recommendations  Read Replies (1) of 71447
 
GST, why is the bond market predicting deflation? yes, some of the debt is being monetized, but lots of it is not.

max keiser came up with a theory that i think explains the current situation very well.

on one side, you have unlimited debt that drives the fear of deflation.

on the other side, you have unlimited printing powers that drives the fear of serious to hyperinflation.

the banks will use both tools to maximize their profits at the expense of the people.

max is long and strong gold, but he is predicting the banks pull the "deflation card" in early 2010 to milk trillions more from the tax payers to keep the zombies walking.

i think he is right.

the amount of bank debt could be in the $100+ trillion range - that is just staggering.

my ira is long gold/silver companies with an RWM hedge. my regular account will be long gold and silver bullion with a short IYR (or similar) hedge. if we get that peek into unlimited debt and a deflation scare hits, i will make money to ultimately switch into 100% bullion. if we go into hyperinflation, i make money, too and will eventually just ditch iyr if deflation becomes highly unlikely.
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