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Strategies & Market Trends : The coming US dollar crisis
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To: rich evans who wrote (38802)6/1/2011 11:16:09 AM
From: Real Man1 Recommendation  Read Replies (3) of 71475
 
Yep, the credit machine is BROKEN. There are no qualified
borrowers, so probably only 10% of M0 money supply the Fed
created by QE3 actually wound up in the real economy, the
loans. However, the Fed did halt a sharp deflationary DROP of
total credit by printing. Without Ben it would most certainly
happen.

Once Ben stops printing, I would think asset prices will
resume dropping, and deflationary pressures will reassert
themselves. He will then start printing again. The idea is
that debt is easier to repay in cheaper dollars, but,
technically, the market could demand higher interest rates
to counter devaluation risk? Has not happened yet, but if
it does, we go "Greek" -ng-
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