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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: William H Huebl who wrote (73380)	6/26/2006 9:59:02 PM
From: Real Man	Read Replies (2) \| Respond to of 94695

Yep, even though some deflationist folks think the dollar might rally as bad debt gets destroyed, the fundamentals for the dollar are simply horrible. The bubble imbalances are getting nurtured by the Fed, so anything is possible, but I just can't see the dollar rally when the wheels come off this train. I agree with a crisis scenario similar to Argentina. That is, unless the Fed chose to be tough. I don't think it will, and I'm not sure it will matter at this point. Message 22571839 Take a look at the gold chart in that article, and compare it to what it's doing in USD terms today. It's a message, IMHO US treasuries are unsafe! In a few years, the government will have to default. Given that this is the so-called "risk-free" interest rate in all derivative models, .... We are at a critical point. The Fed pulled a rabbit, by talking tough without (so far) any action. If they choose not to raise now, their credibility will be severely damaged.