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: Tommaso who wrote (4225)	2/12/2008 11:05:35 AM
From: Real Man	Respond to of 71456

Message 24304899 This gives me a little hope, the improvement of current account deficit as a percentage of GDP. We should see more of a decline, perhaps much more (50-s), but there is a light at the end of the tunnel, hopefully. Inflation won't run inverse to the dollar slide, a lot slower. However, expect a lot more of it, not less. The key idea, of course, is to bail out the housing bubble with less pain than otherwise would be necessary. Turkey had 80-100% inflation in the late 90-s. We could get up to 16-18% in 2-3 years, per Williams' statistics.

To: Tommaso who wrote (4225)	2/12/2008 1:37:11 PM
From: Real Man	Read Replies (1) \| Respond to of 71456

Uh-oh. Once the stress is temporarily off, someone may sell the dollar in size. SAN FRANCISCO, Feb 12 (Reuters) - San Francisco Federal Reserve Bank President Janet Yellen said on Tuesday it was "premature" to think about the Fed's possible strategy to raise interest rates once the U.S. economic slowdown has passed. Yellen told reporters after a speech that for now, the Fed needs to stay focused on downside risks to growth, and the "factor of fear and caution" that could already be at play, similar to those seen in the early 1990s U.S. recession. The Fed's "aggressive" string of rate cuts has been focused on shoring up the economy and the "innocent bystanders" hurt by problems in financial markets, Yellen said. The Fed can't be afraid to act merely because of the appearance of "moral hazard" that some might see in bailing out financial markets, she said.