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

To: John Vosilla who wrote (6725)	5/1/2008 9:18:16 AM
From: ggersh	Read Replies (1) \| Respond to of 71442

"Yes the Bush/Cheney disaster has only eight months to go so most of the damage has been done.." Said the same thing 3 years ago..........

To: John Vosilla who wrote (6725)	5/1/2008 11:40:28 AM
From: Ken Reidy	Read Replies (1) \| Respond to of 71442

I respectfully disagree.....Oil, commodities and bonds need to keep steadily increasing in price or the risk of this recession turning into a deflationary depression increases significantly. The Stock Market has deflated since 2000...particularly the Nasdaq. Recently, Real estate prices have started a deflation...where it stops is anybody's guess. It is almost comical to listen to the Financial Media go on and on about a commodity bubble...I wonder who sent down this propaganda order to CNBC and Bloomberg.....they know the dollar has to keep falling...maybe not against other fiat currencies but definitely against real assets...they just want to control its descent with a couple dead cat bounces here and there. The current "Bubble" is the bond market...imagine the financial carnage that will occur if interest rates truly start to trend northward. Retirees currently earning negative rates of returns on their bond investments, ravaged by high inflation....would then see the principal value of their bond investments start to fall....ouch. Paulson and Bernanke need to keep printing money 24/7. They need to monetize the massive debts. Hence, they need asset categories for this liquidity to flow into. Now that the real estate bubble has blown up....they desperately need another asset category or categories to soak up this liquidity... They must lay awake at night terrified of the Deflation monster...they have shown lately that they are willing to get very creative to keep deflation away. Hence they print, print, print. The money has to go somewhere....or else the ponzi scheme blows up. I may be wrong....but that is how I see it.