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

To: Real Man who wrote (1135)	9/26/2007 12:41:10 PM
From: Paul Kern	Read Replies (2) \| Respond to of 71454

Chronic inflation threatening to get ballistic (Hyperinflation a la Germany in the 20-s or Zimbabwe currently) will happen in the US if the World abandons the dollar peg and starts selling US dollar debt, while the Fed responds by monetarizing the bad debt. Nah. The bond holders won't abandon U.S. debt because they would hurt themselves too much. It will be slow, orderly trickle that keep the dollar falling a little bit at a time for years.

To: Real Man who wrote (1135)	9/26/2007 1:50:06 PM
From: Tommaso	Read Replies (2) \| Respond to of 71454

I don't know the history of inflation and devaluation in France very well, but it seems to me the United States could go into a sort of post-colonial period of fluctuating inflation and devaluation, not a Weimer type, a Turkish type, or certainly not a Zimbabwe type. I stopped and ordered myself a copy of "An Economic History of Modern France." I gather that, as might have been expected, inflation was enormous in the period 1914-1920, maybe 400% over the period. Inflation then seems to have fluctuated between 10% and 50% per year on up to the 1960s. Bad enough, but not Weimar or Zimbabwe.