Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: ggersh who wrote (9535)	7/13/2008 1:24:27 PM
From: The Wharf	Read Replies (1) \| Respond to of 71475

You could be right problem of any interference is you stop growth you halt one end and it is utterly unable to be competitive. No one can control currency and that is what everyone fears as it is surplus currency that is the culprit behind inflation. Gold is fixed and consequently is risk averse. Yet being fixed the way we are set up is does not aid growth. The trick is to keep national currency safe the problem is how. It seems impossible even you have a huge computer system that tracks asset to currency you have human error. You can regulate but in the process you increase the cost to govern the regulation and you do in that process increase cost of gov operation. The how is what china is seeking and yes she could fail as you can't on one hand stop overheating and expect on the other to have lower prices as competition is the driver of reduced price. What do you do when the once standard world currency is no longer standard? The question is how long does it take for Banks to get their own houses in order. Swiss have required higher reserves US is bailing and value is falling. China has won here as her reserve requirments went up some time ago if only to off set her concern of too rapid growth and of course surplus currency. Does China want a surplus of US dollars all fleeing to her no of course not. She has so many of them she doesnt know what to do with them. I think if i were Bb i would go about doing very quiet bails but our nation is a very open one. If the outside doesn't slaughter you the inside will. Short range planning and you have long range pain.