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

To: Real Man who wrote (7180)	5/12/2008 11:52:38 AM
From: dybdahl	Respond to of 71456

There is a general consensus in Europe that 2% inflation is better than 0% inflation, something that the videos don't seem to agree with. I think it makes sense to put a tax on owning cash - all taxes are basically damaging, but when you distribute the tax on all kinds of things, it has a less damaging impact. However, if you anticipate that 2% inflation is normal, that's a factor 7 in 100 years - it doesn't make sense to show that using a linear scale. The CPI on your chart has actually risen 2.1% per year from 1903 to 2003, meaning that your "exploding inflation chart" basically shows normal inflation levels. Your chart is basically hugely misleading, and the same happens to the videos. It would be much easier to extract the useful information if the chart had a logarithmic vertical axis.

To: Real Man who wrote (7180)	5/12/2008 1:03:50 PM
From: RJA_	Respond to of 71456

>>The "reserve currency" system is certainly most unfair, as the country that can print a "reserve currency" enjoys temporary benefits others don't, such as running a huge current account deficit for quite some time without seeing a currency crisis. One would think, the benefits of reserve currency status being so great, that it would be clear to folks managing such a system that it should be maintained at all costs... and if so maintained the benefits would be ongoing rather than temporary. Maintenance of a reserve currency should be possible. That this is in the process of being lost in the US, and with it a significant decline in US living standards, is a terrible indictment of either the political system, or those who hold office, or the educational system or all three. Of course not all who hold office are responsible for this... just the controlling majorities and their related parties. Even majorities cannot overcome filibusters unless they are super majorities. This will be recognized as a turning point in US history. That being said, one way out would be cheap alternative energy... see AVA Solar, Nanosolar etc.