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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (490829)	11/11/2003 2:21:57 PM
From: Wayners	Read Replies (1) \| Respond to of 769670

Nobody will get away with a devalued currency. Nixon had to do it twice in the early 70s, I believe as a direct result of the inflationary effects of Vietnam. I always thought the people screaming inflation in the 1990s were idiots because there was no major ongoing war. Now I think things are different. When foreigners sell their home currencies and buy dollars and then buy treasury's with those dollars...when the credit of the U.S. comes into question and the bubble bursts reversing the cycle to dumping treasuries and the U.S. dollar...look out. If treasuries couldn't be paid off, I suppose the land holdings of the U.S. Government and other assets would be stripped in order to meed the obligations, but I don't think that would happen. The U.S. Govt would just let inflation explode, the dollar becomes worthless, riots and anarchy or martial law is declared and guns are very valuable.

To: DuckTapeSunroof who wrote (490829)	11/11/2003 2:28:00 PM
From: AK2004	Read Replies (1) \| Respond to of 769670

re: And that will only work as long as the bond buyers don't catch on to the scam. / Bond investors - as a whole though - are more knowledgeable than equity investors. They'll catch on fast as soon as inflation works it's way through our system (commodity prices are already climbing fast...), and then they'll force long rates sky high. you sorta contradict yourself but, hey, why not - if American Spirit and Sylvester can foam at their mouths so can you, it's your right........ Just as long as the value of our economy on average is growing at a faster pace than the value of the debt then you should not be concerned unless government wastes money like democrats usually do.