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: DebtBomb who wrote (5881)	4/5/2008 9:06:35 AM
From: Real Man	Read Replies (3) \| Respond to of 71402

I don't think America will collapse from all this, but we definitely need to do something urgently. It depends on the path chosen. 1) A painful path will tend to fix the situation long term and erase our huge imbalances. 2) An easy path is hyperinflation, and that will destroy the country further. I'm not sure which path the Fed will choose. The middle road? The Japanese Way? Or will the congress abolish the Fed, and then set us on path (1)? So far the Fed always chose to blow bubbles, the easy path that destroyed our country. Ben is still a mystery to me. I'm not sure how to label him, and whether all the public swearing at Ben should be taken as a compliment (does that mean he is doing the right thing?) He gets beaten up right and left - he was too slow to drop the rates for some, too fast and dropped them too much, destroying the dollar in the process, for others. Does this mean he did the job just right? The current account balance must go down. This means we should have a recession, higher inflation, and a currency drop? Sir Alan was adored and cherished by everyone, remember? He is to a great degree responsible for the mess we are in.

To: DebtBomb who wrote (5881)	4/5/2008 9:24:45 AM
From: Real Man	Read Replies (1) \| Respond to of 71402

FWIW, Ben told the congress that the system almost collapsed. He didn't want to test what would happen if Bear defaulted as a counterparty, and that's what the bailout was about. He told the truth. Should we swear at him for that one?

To: DebtBomb who wrote (5881)	4/5/2008 12:57:37 PM
From: dybdahl	Respond to of 71402

0wn3d?

To: DebtBomb who wrote (5881)	4/5/2008 1:10:32 PM
From: RockyBalboa	Respond to of 71402

As of March 17, 2008, one Swiss franc is worth more than $1 dollar. In 1970, the exchange rate was 4.2 Swiss francs to the dollar. In 1970, $1 purchased 360 Japanese yen. Today $1 dollar purchases less than 100 yen. If you were a creditor, would you want to hold debt in a currency that has such a poor record against the currency of a small island country that was nuked and defeated in WW II, or against a small landlocked European country that clings to its independence and is not a member of the EU? Would you want to hold the debt of a country whose imports exceed its industrial production? According to the latest US statistics as reported in the February 28 issue of Manufacturing and Technology News, in 2007 imports were 14 percent of US GDP and US manufacturing comprised 12% of US GDP. A country whose imports exceed its industrial production cannot close its trade deficit by exporting more. When the dollar ceases to be the reserve currency, the US will no longer be able to pay its bills by borrowing more from foreigners.