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


To: IngotWeTrust who wrote (2874)12/8/2007 3:38:38 PM
From: Real Man  Respond to of 71463
 
Here is another find, from independent strategy. This one
includes currency decomposition of the pyramid. Note that
Euro=USD in many areas (Fig. 10), in particular, the upper
part of the pyramid. This means Euro gained as it became
the world currency, and a major part of the pyramid, but
further gains could be limited going forward? Stocks are cheap,
by the way -ggg- This is old too (2006), right now
the upper part is more than 500 Trillion.

instrategy.com

And yes, the CBs know. That's why they are worried sick.
Here is a speech from CB of NZ. It shows the liquidity
pyramid is now out of control of global CBs.

bis.org



To: IngotWeTrust who wrote (2874)12/8/2007 4:09:40 PM
From: Real Man  Read Replies (1) | Respond to of 71463
 
My intuitive reaction was to close most accounts and transfer
everything into physical gold and silver, no paper gold.
This global fiat pyramid could blow up soon, with unknown
ramifications. It is definitely shaking. The huge growth
was a result of global policy of easy money, following the
tech bubble collapse of 2000-2002. I would think such a
blow up is a) inevitable, b) will be wildly bullish for gold,
as a flight to safety vehicle. Investors will realize that
interest rates on government bonds wildly underperform
inflation. The global solution to the easy money problem of
2000-2002 appears to be more easy money.

It also appears to me that Euro gains against the dollar should
be limited going forward, although, of course, we can
overshoot.