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


To: ild who wrote (48140)12/24/2005 4:19:59 PM
From: loantech  Read Replies (1) | Respond to of 110194
 
Thanks for all your hard work this past year ild and all the Heinz posts etc. I am with you yankee dollar may no longer king and may go down. I can think of several groups more than a little PO'd at the arrogant attitude of the US who may not mind seeing a dollar swoon. Maybe their economies are not big enough to matter but .........



To: ild who wrote (48140)12/24/2005 4:26:42 PM
From: UncleBigs  Read Replies (1) | Respond to of 110194
 
US citizens will repudiate debt instead of paying it down

Exactly how will US citizens repudiate the debt? Can you imagine the deflationary pressures and extreme economic distress that must be exerted before our political leaders decide to pass a law renouncing our obligation to repay debt?

You may say the Fed will just print money. Okay well explain exactly how that printed money will get into the hands of an unemployed mortgage broker, framer or contractor who can't pay his debts.



To: ild who wrote (48140)12/24/2005 6:35:08 PM
From: jackjc  Respond to of 110194
 
I also wish to thank you for Heinz posts. I read every one
and find they usually make a lot of sense. And I embrace the
Libertarian outlook also (as well as I understand it).



To: ild who wrote (48140)12/25/2005 3:05:30 AM
From: kris b  Read Replies (1) | Respond to of 110194
 
“Who exactly has borrowed in US $? Foreigners didn't, did they?”

Everybody, just ask Buffett and all the guys playing the carry trade when the US rates were at 1.25%. US $ will collapse but not before all these guys get squeezed by the credit contraction/fewer US $ in circulation. The only way to crash US $ now is to rescue a credit/housing bubble by tripling the credit creation. Like UncleBigs said “While the user is deathly ill, the drug pusher continues to offer a plate full of fresh drugs. At that point, the user doesn't take anymore or he'll die “

Is it doable? Probably. Is it suicidal? For sure.