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

To: Don Earl who wrote (12731)	10/9/2008 7:19:47 AM
From: Real Man	Read Replies (1) \| Respond to of 71454

No. But you can fix asset bubbles with inflation. You dilute the value of the dollar and prices rise. Then a little manipulation to ensure only those prices that need to rise will rise. And then your get more collateral. Of course, that trick was used a little too often, so when this mess ends, inflation will skyrocket even more.

To: Don Earl who wrote (12731)	10/9/2008 8:13:15 AM
From: Real Man	5 Recommendations Read Replies (3) \| Respond to of 71454

The problem of US economy is structural - the bubble structures are already in place. Significant part of the economy feeds on the printing press already - the Wall Street, the financials all add up to 40% of Gross Domestic Product. The manufacturing has been totally destroyed (ask about a bear market, that's where - just look at all these abandoned factories in downtowns of every major American city - broken windows and stuff). Restructuring is necessary, and it just can't be achieved without significant pain. Financial people will have to lose their jobs. The Real economy will have to pick up these lost jobs. The Fed CAN avoid significant rise in unemployment with its printing press, but... at this point, it seems, if they save the Financial system instead of directing help toward the real economy, we will get hyperinflation. By trying to inject printed money directly into financial system they are doing the wrong thing, IMHO. The job shift will be into berserker financial economy, again! If a country produces nothing, well, it's only a matter of time before the currency becomes completely worthless. In other words - well, if the Fed does NOT allow significant part of the financial system to evaporate this time, I'm afraid, stuff will hit the fan in a form of Weimar. How can we get manufacturing back? The answer is, a sound currency. Government funding directed toward manufacturing rather than berserkers would be nice. And, for God's sake, deal with this Derivative bubble! Regulate it, ban it! If the Fed tries to save it, ban the Fed! (banning the Fed is maybe the best idea). Stop managing markets, and care about the real production, the real economy. Inject money where it's needed most. Let the WS drown in its own chit. At this point we need new leadership. Need to replace the crook Paulson. Maybe, ban the Fed altogether, since it's an organization that simply transfers the real wealth to the banks and financials in the most unfair way. Unfortunately, right now I don't see any restructuring happening, and I see the Fed desperately trying to preserve the financial berserkers. Thus, my bet is, until we get a policy change, we will be moving toward the dollar being worth zero. That means a much higher stock market. We need to save this country from these destructive policies!