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Strategies & Market Trends : The coming US dollar crisis

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To: Real Man who wrote (26363)1/21/2010 1:15:53 PM
From: gregor_us5 Recommendations  Read Replies (2) of 71475
 
Austerity measures only serve to clarify the national insolvency. I actually think we get closer, faster, to a flight from US assets via chosen deleveraging. Deflation is initially bullish for USD and USTreasuries, until the point of breaking. ANd then deflation too triggers hyperinflationary laws, via the currency.

There's simply no way to avoid reckoning day. Just different paths. Volcker is a real problem in that he signifies discipline but the US financial system is not running on discipline, it's running on reflation. Without reflation, it rips the mask off again to our hollowed out economy that does indeed make stuff--just not enough stuff to support 300 million peeps at current asset values.

I smell the scent of capital flight from the US.
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