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

To: NOW who wrote (12351)	10/4/2008 8:16:31 PM
From: Real Man	1 Recommendation Read Replies (2) \| Respond to of 71479

You must know better. I haven't been reading his stuff too much lately. Frankly, I am quite sick of this bearish inflation/deflation debate. Fed printing $3 trillion will turn one into the other <g> I like Jesse a lot, he makes sense. In fiat world it's all a matter of monetary policy, so Mish could be right, even though he is too stuck in his deflation stuff. Given current policies, I don't think he will be right.

To: NOW who wrote (12351)	10/4/2008 11:02:16 PM
From: Real Man	Respond to of 71479

The answer, perhaps, is in that von Mises quote in the thread head. As the credit enabling continues forever, the country can fall into hyperinflation. We've already seen the berserker bid hyperinflation dynamics earlier this year when certain commodities tripled in 2 months. They stopped it, for now. -g- In other words, we got much further into the mess than Japan ever did, so the credit bubble has already transformed our whole economy and canned manufacturing. We'll get "the perfect storm" as a result. Argentina stuff. If the bailouts and enabling by the Fed continues, we'll get hyperinflation, USD -> 0. I can see that, but things could change as Bush gets replaced. I'm very hopeful for a brighter future than that.

To: NOW who wrote (12351)	10/4/2008 11:30:04 PM
From: Real Man	1 Recommendation Read Replies (2) \| Respond to of 71479

Does this end the inflation/deflation debate? <G> So, according to this, the severety of the crisis goes as follows 1) Japan/US Great Depression. Financial crisis, no currency crisis. 2) Worse: Currency crisis + Depression (severe recession) - the "perfect storm" - Argentina 3) Worse: Hyperinflationary Depression. Weimar, Zimbabwe. The third one completely destroys the country. Let's hope the DOW does not go to 100K shortly -g- mises.org The Dark Side of the Credit Boom "Against this backdrop the crucial question is: where is the borderline between a "good" and "bad" rise in debt-to-GDP ratios? To Austrian economists the ratios spell danger. They maintain that today's government-controlled paper-money systems have decoupled credit expansion from the economies' productive capacities: "circulation credit" feeds a "credit boom" that is doomed to end in severe economic, social and political crisis.[3] Austrians fear that the collapse of the credit boom will lead to the destruction of the currency through a deliberate policy of (hyper-)inflation, destroying the free-market order." Greenspam was an Austrian school economist, he knew exactly what he was doing. Mother@#$$#%#$. We can now go to (2) or (3), Ben's choice. He is choosing (3), bailout package the proof.