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

To: gregor_us who wrote (15930)	1/1/2009 7:09:34 PM
From: RockyBalboa	Respond to of 71456

I agree somewhat,.. but don´t overlook that at current yields T Bond auctions are a tough sale and then the US treasury intends to issue debt in foreign currency (e.g. yen). They also do swaps with the ECB to be indebted in Euros which is more or less, the same.

To: gregor_us who wrote (15930)	1/1/2009 7:16:12 PM
From: Secret_Agent_Man	2 Recommendations Respond to of 71456

stunned is an understatement- how can one begin to believe such utter nonsense economics does not exist...it cant with these type of thought processes- if printing more currency makes that currency more valuable i'm definitely in the wrong business or on the wrong planet- i just dont know anymore-

To: gregor_us who wrote (15930)	1/1/2009 8:10:56 PM
From: Box-By-The-Riviera™	Read Replies (2) \| Respond to of 71456

would urge all to read "dying of money" out of print. used copies going in the hundreds. find library. a fantastic tome.

To: gregor_us who wrote (15930)	1/1/2009 8:51:30 PM
From: Aggie	1 Recommendation Read Replies (1) \| Respond to of 71456

Hi gregor, Really enjoy your work, many thanks for it. "I'm stunned by it." What's to be surprised about? We've spent the last 20 years successfully de-coupling from the myth that debt is the responsibility of the debtor. It's a small stretch to complete the lunacy by believing that currency holders can ignore the need to defend the currency. In our Sound Bite Society, we only have to keep repeating it like a mantra until it becomes an accepted fact. Personally, I'm sick to death of traffic so I'm starting a petition to repeal the Law of Gravity. This will allow all of us to fly our cars to work. Aggie

To: gregor_us who wrote (15930)	1/2/2009 12:43:54 AM
From: carranza2	Respond to of 71456

I am stunned, too. How can this be good? Sure, such a simplistic thing would lead to a debt-free government but also a tremendously devalued dollar. The dollar would become an international pariah, lose its reserve currency status. No one but no one would buy Treasury instruments. I have not even begun to think about the political repercussions. Beggar thy neighbor is not a good policy. The proposal is insane. I am astonished that the poster, who otherwise seems intelligent, could hold such a thought.

To: gregor_us who wrote (15930)	1/2/2009 1:00:17 AM
From: TH	2 Recommendations Respond to of 71456

gregor, I'm not stunned by it at all. I expect it, as it is the kind of thing that happens as we near desperation. This is a game of who flinches first. And after that happens the house of cards that is the dollar and treasuries is going to crash fast. And then this nonsense will stop. Right now no one wants to flinch, for it is true that everyone holds this toilet paper. But, someone is going to dump and this game will begin. That is one of the major factors that will drive the next massive leg in the POG. The leg that rips a hole right through 1000 and never looks back. GT TH

To: gregor_us who wrote (15930)	1/2/2009 1:00:24 AM
From: Real Man	Respond to of 71456

Interesting, and that's silly. A currency crisis can happen due to external indebtedness, but I think hyperinflation is usually more of an internal printing problem. -g-

To: gregor_us who wrote (15930)	1/2/2009 6:50:40 AM
From: axial	3 Recommendations Read Replies (1) \| Respond to of 71456

Six months ago, nobody - nobody, not Roubini, not Mish - was predicting USD would be as strong as it is now. There's a logical explanation for what appears to be a temporary phenomenon, but USD defying gravity - even temporarily - was completely unexpected. The majority view was USD decline. Period. No interim strength. Depending on the school of economic thought, we read different predictions about the future. Conviction is an admirable thing, but even "experts" hold different views about the way things will work out. See the original post, here - is von Mises correct? Are we still on our way to a crash? Or has intervention and fiat money postponed the crash for another decade? Who knows? I'm a big fan of your comments, but recall that even you were careful when discussing reflation: "if" it works. Maybe it's a sign of the times: posters, apparently intelligent, are making illogical statements. Sure, there's lots of room for conjecture; that doesn't mean we should abandon reason. We should try to keep an open mind, but the poster's statement makes no sense. Jim