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

To: axial who wrote (20903)	6/21/2009 4:27:11 AM
From: Skeeter Bug	1 Recommendation Read Replies (1) \| Respond to of 71456

>>It's a question of whether the debt can be serviced and repaid... a question of degree.<< i've asked a number of people whether the united states would ever balance the budget. not a single person has ever said "yes." although clinton got close (he didn't do it - the debt rose every single year he was in office), he did so on the cusp of the credit bubble that is now taking down the world economy. i think we can agree that game is over. note - i didn't say one word about actually paying back debt. that's even more difficult that balancing the budget. btw, every worker in the united states is on the line for about $600k to pay for the current obligations promised by government. that number is dramatically increasing... and when interest rates go up, it will grow even faster. i think it is a fair bet to say we've already passed the point of no return.

To: axial who wrote (20903)	6/21/2009 4:44:48 AM
From: Real Man	Read Replies (1) \| Respond to of 71456

It's a screwed up situation a la Argentina, and the game is over. Unless the policies are drastically changed, we will not come out of it either. In any event, one should not expect a speedy recovery.

To: axial who wrote (20903)	6/21/2009 5:45:07 PM
From: GST	2 Recommendations Read Replies (1) \| Respond to of 71456

The inflation outlook is based on what is real -- here and now, not on some speculation about future events. You can if you wish conjure up a future that is radically different from the one we live in today and use that to create imaginary scenarios where we are not running massive deficits at the state level, the federal level, and on the current account. That sort of dreaming has its place. But I am not referring to some possible future scenario -- I am talking about the most likely developments based firmly on current reality. Barring some almost impossible to imagine development, inflation is our destiny for the short term, the medium term and the long term. What you speak of is highly speculative -- and most improbable, almost fanciful. We will have a lower standard of living, although many people will do well. The world will carry on without us and we will go through many dramatic changes. But in the end, no matter how much you wish it was not so, the fate of the dollar and the fate of prices in dollars is baked in the cake -- and in that cake there is a core of inflation that will only get worse. There is no 'money in the vault'. There is only a pile of IOUs that we have already begun to repudiate.