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

To: John Vosilla who wrote (88371)	11/2/2007 6:36:30 PM
From: Real Man	Read Replies (2) \| Respond to of 110194

There is a limit to currency debasement, even though this seems unlikely at the moment. As the dollar devalues, the US net international investment position (currently -2.9 Trillion, much less than accumulated trade deficit) will become positive, since US foreign investments are bound to grow much faster than foreign investments in the US. Talk about trade deficit being "forgiven". So no, hyperinflation, defined as 50% or more a MONTH CPI increase, is not very likely, not at this level of printing. That said, the dollar will quite likely fall further to as low as 60-s, and maybe even 40-s. That will seem like hyperinflation.