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

To: axial who wrote (20603)	5/28/2009 2:44:35 AM
From: RJA_	2 Recommendations Respond to of 71475

>>When other parties become too numerous or too big to fail - the currency itself will pay, and the outcome will be distributed fractionally on every man, woman and child: even the poorest. Well said. I don't like this very much, it goes against my sense of justice... but it seems to fit with the program. Everything done, in terms of bailing out by printing money, or guaranteeing liabilities that will be paid by printing money ultimately cheapens the currency. The currency is the lender of last resort... and the value of it will ultimately suffer. It appears to me that we are at unpayable levels of debt, first brought on by Vietnam, Iraq, Afghanistan, and most of all, the humongous bailouts. All of these are/were unproductive, and the burden will be placed on those who save, and particularly those who are beyond their earning years. As the event did in Wiemar, it will turn all into speculators. Speculate or die. It certainly creates broad classes: Those who caused and benefit from the bailouts, and who are sufficiently politically/economically powerful enough to benefit from them, and everyone else. The second class can further be divided into those who have some wealth to protect (savings or investments) and everyone else. The class with some wealth/savings can further be divided into everyone who can see this event coming and can and will and do something about it (in terms of asset protection) and everyone else. I'd like to think I am part of the group that is anticipating this and making the right choices. Time will tell. A side note: "Speculate or die" is particularly hard on retirees because they have no opportunity to recover from mistakes. It is also particularly hard on participants in local government, because by law they are not allowed to speculate, and can be held personally liable for same. Therefore local and state government will most likely not make the right moves, because the right moves will be unconventional. Interestingly enough, Federal Bank Examiners (of which I was one in a much earlier life) consider US Federal debt to be the strongest asset to be held on a bank balance sheet or in a trust account.