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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: RMF who wrote (50258)	2/8/2009 11:39:43 PM
From: LLCF	Read Replies (1) \| Respond to of 149317

<When you say the USD is going to "crash" then I've got to ask in relation to WHAT?> In relation to all other currencies who's supply hasn't been increased exponentially like ours... ie. all of them. Also, of course in relation to everything else... goods, services, commodities.... etc. <I was talking about in relation to other currencies. Right now, I think about 8 yuan will get you one USD. I don't see any circumstance in which that ratio would change dramatically. It's not in the Chinese best interest for that to happen, nor is it in the best interest of ANY trading partner of the U.S. to want that to happen.> Well, sure... if other countries can actually print as fast so as to catch up, eventually they'll all be worthless. Doubt that will happen, especially since NOW it's pretty clear that to lower your own currency (China say) in order to sell more goods here doesn't make any sense, since we're broke at any price. <But, I think it will be WORLDWIDE inflation. Not just isolated to the USD, but to ALL currencies.> Oh, I agree with that... bankers will try and "stabilize" the dollar on the way down and deface their own currencies by doing so. But the sheer volume of dollars behind the foreign "dams" (already printed... ON TOP OF what the fed will do as the economy worsens) makes it pretty unlikely IMHO that the dollar won't be a fraction of it's value in almost any major currency unlikely. JMO, been wrong before. DAK

To: RMF who wrote (50258)	2/9/2009 12:31:15 AM
From: koan	Read Replies (1) \| Respond to of 149317

The whole world is depreciating its currencies to fight deflation. We humans have been consistantly wrong about this deflation. I put no confidence in anyone predicting anything except continued fear. Gold and silver are really the only truely safe things. Lots of people buying it and sticking it into safety deposit boxes. People ask me that is what I tell them to do. I cannot tell how this whole thing is going to play out. I follow mostly Krugman, Stiglitz and Samuelson (the father-lol). All they say is they are sure we need huge stimulous and hope things turn out.