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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: The Wharf who wrote (25690)	8/10/2007 5:19:29 PM
From: sea_urchin	Read Replies (1) \| Respond to of 81118

Darleen, it would be presumptuous for me to talk about the property market in SA and most certainly so in the US. I know you have been intimately and personally connected with the US property market and I respect what you say. My remarks were intended only as a contribution to the discussion about the sub prime influence on the stock market -- and I know precious little about that, as well. But I do know that if the Fed stops printing and/or raises interest rates that could bring on a recession in the US and many home owners and others will go to the wall. Therefore, I believe that they (the Fed) have no choice but to keep on printing and devaluing the currency. Of course, this impoverishes the country and makes Americans poorer but the argument is if every nation does it then we all get poor together and therefore no one gets poor. It's similar to the specious argument (which I posted and, in fact, have used myself) that if the dollar has no currency to devalue against then it can't be devalued. So the Fed and the CBs can go on printing as much as they like. Of course, the continued creation of paper money and a US foreign debt of $2bn+ a day has to have an effect and to suggest that it doesn't, as many commentators do, is absurd. But for the printing to continue without price inflation is impossible so they have to "disconnect the speedometer", so to speak, which they have done -- they no longer mention M3, the figures for inflation are continually adjusted and readjusted to give the required low answer and the gold price is prevented from acting as a true reflection of inflation by continuous CB sales and probably price manipulation. But everyone knows from their experience in the shops what the real measure of inflation is. That is why I feel all assets, including property, will continue to appreciate. This appreciation, however, will not be steady but will be interspersed with periods of shake-out and price readjustment because the market runs away with itself. So many will be hurt on those occasions. Don't ask me where all this ends. I can only see an enormous bubble ahead -- and after that -- darkness.