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

To: maceng2 who wrote (38751)9/24/2003 3:00:51 AM
From: elmatador  Read Replies (1) | Respond to of 74559
 
If capital stop flowing in, the solutions are:

Increase interest rates(Brazil today)

Increase the savings rate

Stop buying foreign stuff and start selling yours

Print and cause hyper inflation (Brazil up to 1994)



To: maceng2 who wrote (38751)9/24/2003 12:56:43 PM
From: LLCF  Read Replies (1) | Respond to of 74559
 
<If there is a huge amount of debt held by foreigners in USD, and the USD starts to fall, the only solution to total meltdown of the USD is for USD debt interest rates to go up. It's inevitable isn't it?>

Unless the Fed steps in... but yes, agreed. Fed stepping in would be good for about 10% against every currency on the planet the next morning IMO, and 15-20% {LLCF} on gold. Of course some would argue that's not a "crash"... :))

DAK


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