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Strategies & Market Trends : The coming US dollar crisis

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To: ggersh who wrote (29320)7/17/2010 4:26:42 AM
From: Real Man1 Recommendation  Read Replies (2) of 71407
 
Some shadow banking activity is definitely going on, but I
don't think it's the Fed. This kind of activity has been going
on for some time already. These are probably due to some swap
arrangements, USD instruments bought in Europe to cover blow
ups, similar to 2008. Both the Caribbean and London are just
global financial intermediaries. Caribbean activity is a lot
more shadowy than London activity.

The Fed has printed a lot already, and all banks have to
do is to apply the banking multiplier (10x or more). Once
that happens, inflation will take off. So, whatever they do,
they do. Hard to know exactly.

Money is someone's debt these days, banks sure can multiply
the Fed's printing effort, which is already there, on their
balance sheets.
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