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

To: Tommaso who wrote (4700)	3/7/2008 4:20:50 PM
From: ggersh	Read Replies (2) \| Respond to of 71456

IMHO.....America is up for sale. Whether or not we get any takers relies on the "DOLLAR". Gold and the rest of the metals are all probably long term buys as long as the problem is "CONTAINED" to America. Once the contagion spreads overseas I see all asset classes being sold with Commodities being hit the hardest. At some point the Govt. should, will stop the Ethanol madness that has helped and "fueled" the AG market. As the greatest investor of our time points out, that "DERIVATIVES" are the "WMD's" of the financial system and we are just finding them 1 at a time. We are still in the early innings of this game.....GL

To: Tommaso who wrote (4700)	3/7/2008 10:56:59 PM
From: Real Man	Respond to of 71456

I agree, they lost control. However, $10 billion reverse coupon pass is a HUGE liquidity draining action, aimed, no doubt, at commodities and the dollar. You have to multiply that by 30 to get an effect on broad money supply. Now, since they did lose control, what they want and what they get could be two different things. What they might achieve instead? Derivatives that are already under strain will blow up due to lack of liquidity (a crucial component for stability of that market). On the other hand, all the dollars they printed before will come back due to economic weakness and low interest rates and cause still more pain. I'm not sure what to expect, things should get interesting next week, could be a whiff of deflation, and - well, some gold and oil dump, if they are successful in what they want.