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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (39)	5/10/2007 7:03:09 AM
From: Real Man	Read Replies (1) \| Respond to of 71452

It happened in Germany in 1923, and the key ingredients are here. According to John Williams SGS, if we retract all the modifications the government introduced since early 80-s to counting CPI, we get a 10% inflation right now. The latest modification was using geometric average instead of arithmetic average. This reduces CPI number by 3%. Who knows what the real number is, but this number is extremely high, it's "chronic inflation". The point made in that wiki article Message 23525127 is that eventually lies are discovered by the market, and contribute to a faster fall of the currency. If USD can fall from 85 to 81 in 2 months with all the foreign buying, how fast will it drop if they start selling?