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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: I_C_Deadpeople who wrote (86163)	9/12/2007 12:15:34 PM
From: DebtBomb	Read Replies (1) \| Respond to of 110194

"Question is - is there ANY way out?" Yeah....the government relieves everyone of all of their debt.

To: I_C_Deadpeople who wrote (86163)	9/12/2007 12:27:34 PM
From: Real Man	Read Replies (3) \| Respond to of 110194

Yeah, it's a gradual dollar devaluation and monetarization of debt, just like they have been doing. The only problem is that the credit bubble needs to pop first, or else the mess will only get worse. Monetarizing an ongoing credit bubble is like pouring gasoline on fire. If FCBs start selling their reserves instead of accumulating them, then the US (and the World) will get into a serious recession. Granted, there is no way to get out of some serious pain at this stage, but I guess some monetarization will soften the blow and prolong the inevitable cleansing. Eventually a restructuring of the whole economy should be achieved, turning US from a Ponzi finance economy back to industrial economy, which is a lengthy process. Need to rebuild the broken manufacturing base. Was the 70-s stagflation really that bad?