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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?


To: westpacific who wrote (7330)8/17/2001 1:06:42 PM
From: elmatador  Read Replies (1) | Respond to of 74559
 
What if the dollar collapse means LESS (US)inflation?

Remember when the gold and silver the conquistadores import into Europe caused high inflation? The reverse can cause low inflation.

If -as many have already mentioned here- the dollars inside the US is capital flight from Bananistan. Plus money seeking refuge, money seeking protection under the Forrestal, etc, etc then dollar collapsing means dollars flying out the US.

We are not talking about the classic case of US printing green backs. The more of a commodity you have in the market the less people want it kind of Brazilian inflation. As a different thing.

If the dollars fly out:

The there will be less dollars available to speculate with.

There will be less dollars to throw away to any VC with a CLEC or DSL plan.

Then take into consideratio all the aftershocks of that, inflation goes down.