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

To: Tommaso who wrote (8962)	6/15/2008 6:27:57 PM
From: Paul Kern	Read Replies (1) \| Respond to of 71447

The Fed has exchanged those Treasuries for paper that commercial banks do not want. The problem is this paper may be worth 25 cents on the dollar or, even zero.

To: Tommaso who wrote (8962)	6/15/2008 10:55:00 PM
From: RJA_	Read Replies (1) \| Respond to of 71447

>>The Fed has exchanged those Treasuries for paper that commercial banks do not want. This has never happened before and may exceed the authority of the Fed. >>I would not dismiss this development as trivial. No, I don't think it is trivial either. However, I do not think, with the power to print money, that there is any way the Fed can go bankrupt. That of course, is not to say the US money will not be depreciated... as it has been since the inception of the Fed. I guess my point is -- the Feds strength is not its balance sheet, but its ability to print.