Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (19350)	10/3/2004 7:07:16 PM
From: SeaViewer	Read Replies (3) \| Respond to of 110194

b) slowly deflates over time just like Japan That's also what I think. The chinese is in the driver seat. They want US and Japanese technologies. Once they got what they want, they will pull the plug.

To: mishedlo who wrote (19350)	10/3/2004 9:03:07 PM
From: Wyätt Gwyön	Read Replies (2) \| Respond to of 110194

the problem with that theory is that there are liabilities which MUST be paid--those of the governments to their constituents, who will otherwise revolt or starve in the street by the millions when their Social Security checks bounce. USG is in the hole to the tune of around $60 trillion, all-in. eventually everybody will get reamed--taxpayers, "beneficial creditors" (i.e., everybody expecting a government retirement handout and health care), and "monetary creditors (i.e., public debtholders, who will get paid back in dollars depleted by inflation). To inflate it away is to say that greenspan won. to say that it CAN'T be inflated away is to say that fiat currencies are indestructable. that's unlikely, imo. after all, "all things must pass", especially worthless confetti. obviously the only thing that has kept USD going is support by Asian mercantilists. but they all have their own monetary problems on the horizon so their ability to contribute to the USD survival fund is quite limited.