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

To: axial who wrote (17310)	2/4/2009 10:21:06 PM
From: Real Man	Read Replies (1) \| Respond to of 71406

Thanks, very good read. FWIW, policy choice in Buenos Aires... CB actions during a currency crisis. Depression or hyperinflation. They chose depression. As the dollar inevitably starts to collapse, what shall we choose? From this, it might be wondered why any rational government would engage in actions that cause or continue hyperinflation. One reason for such actions is that often the alternative to hyperinflation is either depression or military defeat. In late 2001, the Argentine peso collapsed in value. Rather than printing sufficient cash for the public to carry, which they feared would start a run on the banks, the government took the peso off its dollar peg. Many international economists predicted that they would have to get a new loan from the IMF and impose shock therapy in order to avoid hyperinflation. Currency controls were imposed, tariffs were instituted, and the economy was allowed to fall into a severe recession during which unemployment hit 25%, homelessness and crime spiraled upwards, and the poverty rate peaked at over 50%. en.wikipedia.org