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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: SouthFloridaGuy who wrote (45994)	11/30/2008 11:11:20 AM
From: koan	1 Recommendation Read Replies (3) \| Respond to of 149317

Lots of currencies are failing. Russia, Pakistan, Argentina, Mexico. And lots of countries in trouble. Iceland, Argentina, Russia, Ireland, England, Japan and and much of Europe and Panic in China. Even though China is expected to run a 7% GDP next year while we run a negative GDP. And states and cities all over the country are running into huge debt and revenue problems. And counries all over th world lower their interest rates weakening all currencies. Although the dollar still remains the currency of last resort with all this bail out and stimulous, how long will that last? It was very curious last week when gold rose $70 (against all major currencies), silver was up over a dollar and the dollar was rising as well (usually over a 90% inverse correlation between gold and the dollar). And gold is in backwardation. It will be very interesting to see how many requests for delivery of physical comex gold and silver futures contracts this coming friday. One person I know who sells 100 oz silver bars said they easily sold 100 of them recently at 3 to 4 dollars over spot. AIG seems a bottomless pit, All major banks and many regional banks in trouble and the big three auto companies. And businesse's failing everywhere. People are talking about 8.5 trillion committed so far. I do not know how that breaks out. Going forward, who is going to buy our huge projected deficit spending and will the dollar stand up to so much debt? They are going to have to print money I think as we are running out of countries to borrow from. And so far the fed has not increased the velocity of money very much, so businesses continue to collapse and the recession keeps pushing more and more consumer's over the edge. I keep wonderng how bad this is going to get? In my small town I can see the recession everywhere and commerce has slowed dramatically. Housing market is dead. Only one lot sold all year and it was a steal. And like so many cities, our budget is in trouble from lack of revenue. In the 1930's we did not owe a lot of money, so when we finally had to deficit spend we could; but now we owe so much money everyone wonders if we can deficit spend enough to turn the deflationary depression around without creating hyperinflation? I have no idea how this turns out, but it sure looks bad.

To: SouthFloridaGuy who wrote (45994)	11/30/2008 11:34:07 AM
From: RetiredNow	2 Recommendations Read Replies (1) \| Respond to of 149317

I agree with alot of your post, but one thing I've learned from experience is the people who save for a rainy day are the ones who can last the longest and suffer the least when things are bad. Right now, the Chinese have saved quite a bit for a rainy day. The US has saved nothing and borrowed much, much more than other countries. We're suffering now, but I believe it will get worse before it gets better. The next year will not be pleasant.

To: SouthFloridaGuy who wrote (45994)	11/30/2008 1:16:53 PM
From: tejek	Respond to of 149317

The point I am trying to make is that it is better to be trusted as the reserve currency, then to have a peg. Sure. And my point......its better to finance economic stimulus with your currency reserves rather than have to borrow like the US will be doing.......big time. Americans love to pooh pooh the country as a national pastime, but when one looks at the facts, the fundamentals of this country are no different than many others. That doesn't mean they are good, it means they are no different. Why are you turning this into a political debate? It has nothing to do with love of country. And there is nothing wrong with pointing out when we have done wrong. Deficit spending, esp. in good times, is not a smart way to go for any country including the US. Everybody is screwed, but we are screwed the least. Not necessarily......time will tell who will get screwed the worst.