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

To: axial who wrote (19609)	4/10/2009 1:19:01 PM
From: Skeeter Bug	1 Recommendation Read Replies (1) \| Respond to of 71412

TRIG, mr. market is looking at their toes, not the horizon. only folks interested in discounting risk look out toward the horizon.

To: axial who wrote (19609)	4/11/2009 7:42:49 AM
From: Real Man	Read Replies (1) \| Respond to of 71412

No. They will not "start avoiding" Z. scenario. We are IN Z. scenario, and that's exactly what the markets are saying.

To: axial who wrote (19609)	4/13/2009 8:32:57 PM
From: GST	4 Recommendations Respond to of 71412

<Then (they say) they'll start withdrawing liquidity from the economy> Why would the economy 'recover' and grow simply because the fed is pumping money like there is no tomorrow? What is far more likely is that the economy will lie flat on its back without doing much of anything to get up and grow even as it drowns in dollars. Pumping dollars into the economy runs the very real risk of seeing the dollar resume its downward spiral in relation to commodity prices and imports. If the dollar tanks, then inflation soars, and you think the Fed is going to withdraw liquidity? On the contrary - the Fed will have to hold its nose, close its eyes and do even more pumping once they embark down that path. The Fed now has little choice but to ignore the systemic risk to the dollar, just as it ignored the systemic risks that brought us the current financial crisis. It won't solve the systemic risk in finance -- it is simply amplifying systemic risk to the dollar.