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

To: Real Man who wrote (17149)	2/2/2009 10:49:58 AM
From: Tommaso	4 Recommendations Read Replies (2) \| Respond to of 71409

Vi, if you cut through all the wrangling, accusations, agonizing, debate, politicking, threats, analysis, and discussion, what we are looking at for the future is, simply, very serious world-wide inflation. research.stlouisfed.org I had no say in what either Greenspan or Bernanke or Paulson has done, or what the Congress, SEC, etc., failed to do, and I cannot do anything to change or stop anything that is happening. I don't even think I can do much to help my friends or even anything other than my immediate family. But what I can do is to put my own resources where they will be protected against, and perhaps profit from, this inevitable loss of value of paper currencies. To me that means gold, oil (and natural gas), and agricultural products, and investments in these commodities (and their producers) denominated in Canadian dollars.

To: Real Man who wrote (17149)	2/2/2009 11:05:43 AM
From: axial	Respond to of 71409

It's funny, how two different people can say the same thing, but each one says it differently. Pretty much I agree with you, but would have used different terminology. "Financial services need to contract, real economy needs to grow." Financial services were a nonproductive portion of the GDP - actually a negative dressed up as a positive. Not only nonproductive, but sucked capital away from useful purposes. "The crisis is also global, which makes it even harder to tackle. It seems the globe moves toward nationalization as a way to solve the derivatives mess, but US is only partially there." Let it fail, or the redistribute the failure across the population, over time. Everybody's doing it, to degrees. The alternative was a crash. After LEH, everyone lost their appetite for hard decisions. "... the real mess is too much debt." Yes. But a small part of the debt already existed, then more was added to stop the crash and underwrite the derivatives, and the institutions that were exposed. The solution was no solution, it only bought time and increased debt. "The reason is traditional disgust with such "socialist" measures." Too bad about the disgust, because the choice was "socialist measures" or a crash ;) They held their nose. Jim