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

To: carranza2 who wrote (7412)	5/17/2008 9:51:54 PM
From: Real Man	Respond to of 71475

federalreserve.gov Here is the Fed's balance sheet, you can see the change to currency in circulation from 1 year ago is + 5.107 billion, to 812.468 billion, or 0.6% YOY. The Fed is not printing, because the effect on the dollar given low rates would be devastating. The Fed knows that, and can't risk much higher rates. They are risking a USD/treasury avalanche already, but if they start monetizing, it WILL happen immediately. Low rates are inflationary already The Fed took the crap on it's balance sheet, and loaned treasury securities it held there (that were backing the currency) to the banks, thus re-liquifying them. I agree, the action itself is not inflationary. However, rampant credit inflation (M3) is very inflationary, and the potential for the Fed to run out of balance sheet exists. Call this "crack up boom"

To: carranza2 who wrote (7412)	5/18/2008 2:12:08 AM
From: LTK007	Respond to of 71475

You are only looking at part the picure, we are inflating globally. Price we pay for imports are inflating at a present pace of 20-30% annualized, and that excludes price of crude.Countries relentless propping our bonds are converting it to their currency and their money base is becoming inflated and that circle back to U.S. This is a Global Issue. Regards market this is a big week , blow through 1447, and i mean blow through, then we have TA a wise REVERSED THE BEAR MARKET. TA wise, the BEAR MARKEY is OVER. i could never have believed the powers could ever reverse a The Classic bear market signal so increbibly fast. i have back tested and a cross of SPXMonthly above its 20sma has signal the END of bear phase EVERYTIME in the past 38 years. I give chart our present situation in the next post.