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

To: John Vosilla who wrote (7007)	5/6/2008 1:33:30 PM
From: SouthFloridaGuy	Read Replies (1) \| Respond to of 71456

Ok, so if I am correct in your assessment so that I may advise the government of the correct policy prescription... The US economy requires $5 of debt for $1 GDP. Everyday more and more Americans go into a negative wealth situation. And household wealth is falling in NOMINAL $USD terms every quarter. Personal Income is declining and not keeping up with the rise in fixed costs. Banks are currently insolvent and will not lend. Conclusion: Rates should rise due to inflation.

To: John Vosilla who wrote (7007)	5/6/2008 1:36:25 PM
From: Tommaso	Read Replies (1) \| Respond to of 71456

>>>The only thing deflationists have gotten right is long term treasuries<<< And it takes 10-30 years to find out if they even got that right. I can remember 4.5% coupon long treasuries selling for about 60% of face value, and that was not even counting in the loss of purchasing power from inflation. The term "guaranteed certificates of confiscation" is no joke.