Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: gregor_us who wrote (85361)	1/31/2009 2:30:07 AM
From: pigfarmer	Respond to of 94695

If the BOJ were to take such a foolhardy step, the consequences would be far from bullish, and would result in nothing less than the utter collapse of Japanese society. Are they ready to make DVD players and Lexuses for free? Their currency would not simply "devalue", but would, like the Zimbabwe dollar, be rejected from the marketplace. And even if the Nikkei were to skyrocket in nominal yen terms, it would be demolished in USD or any other currency. Central banks will soon learn (if they haven't aready) that a currency is not a piece of paper but a claim on the productive potential of a nation, and to treat it as anything else will result in its rejection from the marketplace. No credible central bank will venture down the path of hyperinflation, because to do so would not stop the deflationary collapse, but will simply forfeit any influence they may have retained.

To: gregor_us who wrote (85361)	1/31/2009 8:51:00 AM
From: Real Man	8 Recommendations Read Replies (1) \| Respond to of 94695

“A good many years have passed since I last appeared before this committee but during all of that time, there’s never been a more critical time for the American economy and particularly for financial stability. That’s true not just for the United States but globally. To put it starkly we are in a serious recession with no end clearly in sight. The financial system is broken. It’s a serious obstacle to recovery. There’s no escape from the imperative need for the federal government to come to the rescue to right the economic and financial ship of state. Over time, the hard fact is that several trillions of dollars will be necessary to be committed in a combination of budgetary expenditures and various guarantee and insurance programs and extensions of credit by the Federal Reserve. Obviously, commitments made of that magnitude raise very large questions. They are not only questions of avoiding waste of the tax payers money as important as that is; there are also risks of undermining confidence in the dollar and raising fear of future inflation... we are in the midst of the mother of all financial crises.” Former chairman of the Federal Reserve Paul Volcker, January 21, 2009