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

To: DebtBomb who wrote (5485)	3/25/2008 12:48:27 PM
From: Real Man	Respond to of 71407

Until the buck drops some more against Yuan, a global recession takes hold, so we stop purchasing Chinese stuff. FWIW, oil is now the major component of the current account deficit, and as a fraction of GDP it is already dropping. The real danger is enormous financial bubble (derivatives), and if the Fed tries to keep avoiding its inevitable blow-up by printing. They will need to engineer a gradual pop, if that's at all possible, maybe through regulation and takeovers (neutralizing outstanding contracts). There are only a handful of major players in that market, they obviously hold some offsetting positions.