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

To: LTK007 who wrote (17238)	2/3/2009 7:19:14 PM
From: Real Man	1 Recommendation Respond to of 71456

Ah, Max - maybe, maybe not. We are at 9 for the ratio. The clownbuck is nothing but paper, it ain't gold like it once was. We are about to print trillions. FWIW, hyperinflation is by far the worst outcome possible for any country. It is much, much worse than the Great Depression. US never experienced it because it has only been experimenting with paper money for the past 38 years. The Europeans and others who have a longer history of paper money had their currencies go to zero a few times -g- US sold nothing but paper to foreigners - paper mortgages, paper treasuries, and paper dollars. During all this time since the last recession the dollar was halved, inflation rocketed. It did come down some now that there is a global recession. We could also see a grand bull market. That bull market is a reflection of the bankruptcy of the country. <GGG>

To: LTK007 who wrote (17238)	2/3/2009 7:59:57 PM
From: Real Man	1 Recommendation Read Replies (1) \| Respond to of 71456

Luckily, we are far from that outcome yet, even though we came reasonably close in the first half of 2008. The dollar was diving and there was no end to it. It was getting rejected. Now, the Fed effectively drained a trillion dollars from the global economy by paying interest on reserves, causing October crash and the dollar to jump. In your conspiracy theory view, was that on purpose? (to pump the "risk free" treasuries and the dollar). Or, was the dollar- based system, the American empire, failing, and so it had to be defended? What's hyperinflation? In layman's view, it's when your money is worth something in the morning, but becomes completely worthless by the end of the day. Can't get paid for any job. Speculators and crooks prosper. The real economy does not exist since it becomes unprofitable (why did GE and GM go into banking business? <g>). Food disappears from the stores as the real economy shuts down and farmers refuse to sell produce for paper. You can make far more by buying and hoarding something than your monthly salary. Ideal atmosphere -g-