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

To: orkrious who wrote (89178)	11/26/2007 2:31:17 AM
From: GST	Respond to of 110194

<the rest of the world may not accept our trying to inflate away our debts> The world would have to be full of pretty stupid people not to want to avoid the implications of our policy of inflating away our debts -- otherwise know as default. As the worlds "reserve currency" we are as vulnerable as any banana republic whose debts are denominated in a foreign currency. A run on the dollar will lead to an Argentinian outcome just as surely as if we had borrowed in foreign currency. We are dependent on the kindness of strangers to buy dollars or else watch the dollar slide into the abyss -- and right now the tea leaves say that we are rapidly losing our friends. I can never remember a time when there was so compelling a case to flee the dollar -- or a more compelling time to be long gold.

To: orkrious who wrote (89178)	11/26/2007 10:53:16 AM
From: Tommaso	Respond to of 110194

>>>our society may not have an identical implosion, but we're going to have some fireworks. I expect quite a bit of civil unrest and much higher crime. I hope we don't have Argentina-type problems, but I'm not convinced it won't happen.<<< After the Vietnam war, the authority of police and law-enforcement generally was compromised by the misuse of political power, especially in forcing young men to fight a war they didn't consider necessary. Maybe this time we will escape some of the civil unrest that encouraged disregard of the law.