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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: Zincman who wrote (4221)	12/18/2006 9:37:35 PM
From: 8bits	Respond to of 50182

>>>So, a doubling of FX reserves from here...? Not seeing a massive dumping of the dollar any time soon... ZM<<< I suppose it's possible we see a doubling. Current estimates are that the US needs 1 Trillion a year now to offset budget and current account deficits. M3 growth of the USD is actually not that bad compared to many nations: Country Money Supply % Change on Year Ago (Broad) Australia +11.2 Sep Britain +14.2 Oct Canada + 8.6 Oct Denmark + 9.1 Oct Japan + 0.7 Oct Sweden +10.6 Oct Switzerland + 2.4 Oct United States + 4.8 Oct Euro Area + 8.5 Oct Source: The Economist, Dec. 2, 2006 Russian, Indian, and Chinese money supply expansion are all higher than the above: economictimes.indiatimes.com ft.com 64.233.161.104 If the US Government could get it's fiscal house in order and credit markets tighten up in the US we could see a USD rally. My view, long term, (10 years..) is that the dollar along with many other currencies (come ride in my lovely FIAT) will take a beating relative to hard assets due to the IOUs written for the large number of retirees coming down the pipe in Europe, Japan, and the US. This is the main reason I hold physical metal and not miners (with the exception of two base metal miners..) However, I believe we are due for a liquidity contraction in the next year or so.