The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: Lazarus who wrote (43917)	1/4/2012 7:35:19 AM
From: westpacific	2 Recommendations Read Replies (5) of 71407

On the way up you had long periods of economic expansion followed by short periods of economic contraction...on the way down you will have long periods of economic contraction followed by short periods of economic expansion. That will be marketed to the masses as the recovery...really this time...for sure...that will just be the set up for further milking. There will inevitably come a point where it does become impossible to sustain the recovery lie...then there will be a further collapse or acceleration to the downside. Debt growth rates have been collapsing for decades...they are entering into the zero yield realm. Kind of hard to sustain inflation if the growth rate is zero...Europe benefits from the US inflation machine...It's why it's caving in...another effect. The foreigners will stop lending to the USA once the USA stops supplying US Dollars to invest into the machine to produce ever greater amounts. Which is what the poulation of the USA causes if they can't produce enough Dollars to use as collateral to create enough Dollars...The Chinese stop buying Treasuries...Because they are too busy blowing US Dollars building ghost cities to hide reality. You get debt deflation and the destruction of equity. Which shows up as the collapse of debt inflated prices of assets....valuation that was created out of thin air is returning back into thin air....It's like the structure of inanimate matter vanishing and sending people that were depending upon it for support to their screaming doom. --- What you call civilization is your income generator. Input 1 Dollar at 7% and in 10 years the output is...2 Dollars...20 years 4 Dollars...30 years 8 Dollars...40 years 16 Dollars...50 Years 33 dollars...60 years 66 Dollars...70 years 134 Dollars. Let's say back in 1789 the money supply was 100 Million Dollars...and let's say the demand or yield for more was an average of 2.835% per year until now. How many dollars would there need to be to satisfy that demand? Well according to the 1792 coinage act A US Dollar was defined as... "DOLLARS OR UNITS--each to be of the value of a Spanish milled dollar as the same is now current, and to contain three hundred and seventy-one grains and four sixteenth parts of a grain of pure, or four hundred and sixteen grains of standard silver." Let's say back then there were 100 million of them in the form of Spanish milled Dollars circulating...and the demand for more or yield was an average of 2.835% per year until now. You would need 52.6 Trillion Dollars to satisfy that demand. I wonder why silver is not used in coinage anymore? DUH. The total credit market debt of the USA is currently 52.5 Trillion Dollars. hypertiger.blogspot.com ---- Decades of debt deflation to come...what we face is pure ugly...the last card is yet to play out and that I posted about yesterday. Join in the conversation with something to say; as for Bradley; that is but another model to put into play into the game...trust little the machine tells you today, even posting on boards will grow with risk as each month passes going forward... W

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