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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (12144)	12/5/2006 12:08:03 AM
From: gumnam	Read Replies (1) \| Respond to of 218083

That is a very good point. I almost hope that there is some inflationary outcome. A deflationary outcome can be so much uglier in so many ways. And I hope that the situation can be controlled and managed through financial means. When things lead to wars, noone wins. I guess I am in a very subdued mood today

To: energyplay who wrote (12144)	12/5/2006 5:38:21 AM
From: elmatador	Respond to of 218083

Money is a good like any other. If you flood the market it gets cheaper, but if you flood the market and the takers keep coming, the issuer of the currency keep happily printing. Galloping inflation on the US is not possible. As USD gets printed, other countries buy it. Like Brazil buys it and send it back as payment for its debt. Or other countries, print their own currency and exchange it for USD, thus inflating their own countries,and keeping the USD as reserves. This is necessary to avoid a 1997 meltdown. No reserves? Foreigners come and raid your currency forcing it down. I look to Brazil as the best example of making it good out of the present situation: Pays debt Country’s Risk goes down Can access capital at lower spread Market perceive the country is solid Foreign capital pours in More possibility to print local currency to fund growth (in the actual case to pay the Brazilian state machine because government and people are stupid)