Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: dybdahl who wrote (3938)	2/6/2008 12:30:34 PM
From: Real Man	Respond to of 71406

Yes, and that's the difference between the ECB and the Fed in their respective policies. The Fed must be independent by design in order not to blow up the currency, since the government will always do just that. However, it seems this boundary is not that huge in the USA, since the Fed chairman is appointed by the government. The US Fed must have the courage to do what's needed, rather than what the government wants them to do. But.... when the Fed chairman does that, the government could fire him. -g- I guess the perils of the other side (hyperinflation) are well understood, but the tendencies, unless restrained, unfortunately, always run in that direction. In communist countries the government both fixed the prices and printed currency. Thus, there were huge shortages. Once prices were liberalized, there was hyperinflation. Stalin's answer to hyperinflation was.... SLAVE LABOR - in prison camps. US answer... legalize mexicans -ggg-