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

To: Don Earl who wrote (14681)	11/19/2008 1:50:31 AM
From: selivanov	Respond to of 71456

Volcker's main role in the in the early days of the Friedman neoliberalism claptrap was to bust some unions. Unfortunately, many goldbugs admire the man for the wrong reasons.

To: Don Earl who wrote (14681)	11/19/2008 4:42:43 AM
From: Real Man	Read Replies (1) \| Respond to of 71456

A lot of bearish folks including Fleck praise Volcker for fixing the US economy through shock therapy, raising rates through the roof, but yes, things are different now. During a currency crisis induced by a collapse of sovereign debt financed by foreigners a country has no choice but raise rates through the roof during economic depression to avoid hyperinflation, which is why these kind of crises are so ugly. This is usually needed as stable currency restores the country's manufacturing base, and that eventually leads to recovery. We are not there yet. A complete loss of confidence in US currency will be devastating and much worse than the Great Depression. However, hyperinflation is even worse than a run on the currency. It's a persistent run on the currency.

To: Don Earl who wrote (14681)	11/19/2008 5:30:27 AM
From: Real Man	Read Replies (1) \| Respond to of 71456

"Anything like that now would push an already trashed economy over a cliff to never never land. Jacking up prime to the levels seen in the 80s would completely wipe out the middle class in this country, and probably set off the second American Revolution in the process." Ah, Don, you finally got what kind monster we are up against. Higher interest rates are forced on the country during depression by foreign investors who withdraw money fearing sovereign devaluation/default... Argentina is that never, never land. Here is 2001 picture. Got a torch? <G/NG> Is adjusted monetary base chart scary enough to T-bond holders? I would not buy those under a gun. <G>