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

To: Tommaso who wrote (19134)	3/26/2009 12:04:24 PM
From: Real Man	Respond to of 71475

Sure.

To: Tommaso who wrote (19134)	3/26/2009 2:45:04 PM
From: axial	Read Replies (2) \| Respond to of 71475

Many assume that all problems can all be solved. Those who speak from a purely economic standpoint say "Let that fail; let this fail!" but where is popular support for the consequences? Answer: there is none. We can't discuss economics and finance without reference to political realities. It's been posted that scholars will be writing about this crisis a century from now. Quite possibly, this is an inflection point for fiat money, the fractional reserve system, interventionist economics and capitalism as we've known it. That's the elephant in the room. Even as attempts to resolve these complex problems are made in real time, budgetary directions are being changed. At the same time, external factors intervene and regardless of internal direction, global economic and geopolitical impacts must also be addressed real-time. Damage control is ongoing, in a fluid environment where US dominance is being openly challenged. It's almost certainly true that irreversible destruction will result, but attempts are being made to mitigate it. Many commentators work from the assumption that there is a solution, when that may not be true. Given the global scope and nature of complex interrelated problems, it may be that no one is capable of resolving them. Within this framework, demanding in the extreme, it seems premature to dismiss initiatives that have had barely 90 days for creation and implementation. That some solutions merely beget more problems may be true, but the correct balance is not clear: often, the aim is just to buy time until matters stabilize. If we accept the interventionist assumption that there is a solution then the outcome is known, though the form may change. Historically, resolution has always ended up with the same result: over time the effect is visited on the currency, and fractionally on every man, woman and child. --- There's a reason Volker said "I don't know." Nobody knows how this will come out. Nobody knows how it should evolve, or how it will evolve. Only one thing is clear: great damage has been done, and there will be consequences. Jim