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


To: Real Man who wrote (17146)2/2/2009 9:38:01 AM
From: axial  Read Replies (1) | Respond to of 71412
 
Yes, that's it. You were right when you said nobody really knows what to do. They know how to buy time, but they can't solve the problem.

Underneath it all, the derivative bomb is still ticking. If it all holds together long enough, "they" will also face the problems they created when they bought time, and reflated. Eventually, inflation will start to bite - they'll have to start pulling money out of the economy, or inflation will run wild.

If they tighten money too fast, they'll prolong the downturn, maybe turn it into a depression. Every day they're walking an economic tightrope over the ticking bomb. They can't defuse the bomb, and they can't get off the tightrope until the bomb is gone.

The only hope is that they can walk the tightrope until the bomb stops ticking. How long will that be? Is the bomb getting smaller? Bigger? We don't know.

Jim