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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Mike Johnston who wrote (26046)	12/16/2004 12:05:37 PM
From: bentway	Respond to of 306849

I saw some discussion on TV the other day about the dollar. Japan and China are sitting on massive piles of dollars (trade deficit) with most countries possessing large quantities as well, watching them depreciate. Japan even props up the dollar by buying Treasuries, but the problem has become so large they're purchases are ineffective. It was said the foreign central banks are watching the Bush admin's new budget, hoping for some sign of fiscal prudence, deficit reduction or some other indication of fiscal sanity. Since the Bushies want to end SS by taking on the most massive debt in history, this is unlikely. Barring fiscal prudence from our government, you can expect these foreigners to start dumping dollars. The danger is, that this will become a panic, with the end result being everyone on the planet trying to get rid of shrinking dollars. As Americans, we'll be stuck with our dollars and dollar denominated assets, resulting in massive inflation.