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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Amark$p who wrote (100613)	8/10/2009 6:09:51 PM
From: benwood	Respond to of 116555

I don't agree with "That does not prevent Obama calling for bank holiday and unilaterally declaring a 10% to 50% devaluation in the dollar... " They would have to pass a law saying that everything must be repriced upwards e.g. 20% which I believe is not possible to implement. And it's the opposite of what they want. They are providing the mechanism for debasement, but the actualization of that debasement will be deferred as long as possible. It's no different that a company with a bloated stock value using its own stock to buy up other assets. They know their company isn't worth nearly as much as it's valued, and so the race is on to spend that inflated capital as quickly as possible, lest the market correct before they have obtained others' riches.