SI
SI
discoversearch

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: Real Man who wrote (5293)3/20/2008 5:42:09 PM
From: RockyBalboa  Read Replies (1) | Respond to of 71475
 
looking at General Motors Balance Sheet makes me always feeling dizzy, or sick:

finance.yahoo.com



To: Real Man who wrote (5293)3/20/2008 5:52:37 PM
From: RockyBalboa  Read Replies (1) | Respond to of 71475
 
We aint dead yet! RHD,
finance.yahoo.com



To: Real Man who wrote (5293)3/20/2008 6:44:51 PM
From: Tommaso  Read Replies (1) | Respond to of 71475
 
Not Weimar, but more like France in the period 1913 till the German occupation.

First, let's see who thinks the dollar will keep dropping:

1. Warren Buffet

2. Paul Volcker

3. Jim Rogers

And who else? Nobody I know (who commands any intellectual respectability) believes that a strong dollar is possible.

A perception of a dropping dollar, plus any efforts to stop it, (national or international) will force higher interest rates, as will a reluctance of other countries to take on more U.S. debt.

Higher interest rates will seriously damage both bond and stock markets in the United States.

The dropping dollar is also a simple equivalent of inflation, though it may take a while for wage-earners to demand higher pay (unions are impotent right now).

So despite what went on today in the gold, oil, wheat, copper, and other commodity markets, there is no deflation remotely possible. The most basic commodity, food, is already in short supply while population keeps growing.

The current issue of "The Economist" that was in my mail box when I got home has a 10-page section on the U. S. banking/brokerage mess. The analysis may not be perfect, but I think it is essential reading for everyone on this thread. Just reading it is an intense experience.



To: Real Man who wrote (5293)3/21/2008 1:16:36 AM
From: dybdahl  Read Replies (3) | Respond to of 71475
 
I heard one guy say, that one of the big differences between 1930s and today, is the way that the fed "rescued" Bear Sterns, and that the fed has managed to keep unemployment low.

My simple logic tells me, that if the dollar continues to fall, and the unemployment doesn't rise, I guess it will mean less imports and more exports, which is exactly what the U.S. economy needs. This will make the U.S. economy more robust and trustworthy. In other words, as time goes by, things actually improve.

Vi, I'd like to know your opinion on this.