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

To: RockyBalboa who wrote (2102)	11/8/2007 8:56:11 PM
From: the navigator	Respond to of 71479

oftwominds.com Empire of Debt I: The Great Unraveling Begins (November 5, 2007) Some readers have been concerned that my recent posts have been overly bleak or strident. Perhaps; but I sense the Great Unraveling of the Empire of Debt is finally upon us, and breathtaking losses could be revealed any day now. You cannot properly anticipate the coming wealth destruction unless you understand that the entire model rests on financial instruments (derivatives) which mask and distort risk. Thanks to readers Cheryl A. and U. Doran, I read the best description of how derivatives are written and sold--and how they blow up: Fiasco: The Inside Story of a Wall Street Trade

To: RockyBalboa who wrote (2102)	11/8/2007 9:16:45 PM
From: Real Man	Respond to of 71479

Yes, T-rates will need to reflect the currency risk at some point. The disconnect between 4% rates, 10% real inflation, and a rapidly falling dollar is stunning. The last reported $ printing was $1.396 Billion on May, 3, 2007 ny.frb.org If this is indeed the whole story, then there has been no printing since early May. However, some crucial money supply statistics, M3, is not reported now. It keeps growing at a dangerously high rate of 14-15%, and the dollar keeps falling. The debt is collapsing, whereas M3 and no printing implies that a lot of new debt is being created. I can't connect these two together, so I wonder what's going on behind the curtain. All that M3 money has to come from some source, and it's not the taxes (budget deficit)