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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: Rocket Red who wrote (159084)	5/18/2009 9:02:35 PM
From: Proud Deplorable	Read Replies (1) \| Respond to of 312810

this is wrong. no one wants to live in the US anymore. Things are changing. Home prices in Japan..NEVER recovered.

To: Rocket Red who wrote (159084)	5/18/2009 9:09:44 PM
From: pogohere	Read Replies (1) \| Respond to of 312810

"the buying power of all other dollars" you mean the domestic buying power of those US$ left in the pockets of those in the US who survive the debt implosion, or do you mean the US$ in the hands of those abroad who have been collecting them like "green stamps" for years? or both? I believe US asset prices will fall, but most people in the US will be without any credit or purchasing power. Those in the US with US$ will be able to buy US assets on the cheap, along with foreigners who also still hold scads of what will ultimately become an internationally devalued currency. As the debt mountain implodes, the US$ will likely retain its strength, vis a vis other currencies, because of the continuing need to cover liabilities denominated in US$, confounding many who see the quantitative easing and think "inflation." Once the debt collapse has finally run its course, as it will (and no, I don't know when), there will be those in the US holding US$ who will be able to buy much more in the US as a result of asset deflation, but which will buy much less abroad, as a result of the loss of US$ purchasing power internationally, since the need to cover in US$ will have ended. As well, anything for sale in the US with substantial foreign inputs will increase in price in US$. The latter will reflect the failure of the US$ as the global reserve currency.