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

To: Real Man who wrote (12267)	10/4/2008 12:13:45 PM
From: TH	2 Recommendations Read Replies (1) \| Respond to of 71463

Vi, Yea, that dreaded 9 year cycle <ng> I'm not sure what a rate cut would do at this point. There is a lot to be concerned about, but I bet the highlight of the Hank and Ben terror show way back on Sept 25 was the threat that our foreign creditors would not be showing up at the next auction. Even clowngress understands that we don't really have any money; and depend on the kindness of strangers. The CBO would not even estimate the cost of bailout, for they said that no one can know. We must wait a few years and see what the results will be. So deficits increase, and a lot more than projected, for those budgets are based on employment and business activity, both of which are in serious, serious decline. I have the latest releases from Ford and GM from this past week. Not pretty. So expect some extremely large declines in October and November sales. One major truck line will be shut for three weeks, and I bet much longer, for they will just extend the closure date, again and again. So what can Ben and Hank really do? As the walls closed, they jumped left then right then left again. But with each jump, the walls got closer and the room smaller. There is no jumping space left. They are stuck, and printing is the only dance step left in the bag o'tricks. I wonder what effect the bailout will have for dollar demand? I don't really have a clue about that. It would seem that if Hank and Ben's <Capital Chop Shop> is buying, dollar demand is on the Federal side of the equation. Often there is some variable in our up is down and left is right world that I am missing. I'm sure someone will tell that dollar demand will actually increase, for some perverse reason I've never considered. GT TH