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

To: mishedlo who wrote (100863)	8/15/2009 5:57:34 AM
From: Amark$p	1 Recommendation Read Replies (1) \| Respond to of 116555

Mish: Okay, Puplava has finally given more info on how the US$ can be devalued. 3rd Hour starting Minute 17 or so and ending Minute 22. netcastdaily.com We wake up one morning and the US$ has a new value to it at 1:10 ratio. That is, you have a $100K CD and next day it is worth $10K. A NEW US$ likely printed to replace the old. Thus the new US$ is worth $10 of the old USD and the old US$ is replaced with the new bill for those in circulation. Certainly this would have a psychological impact and create inflationary expectations...? I would assume most of the consumer/business debt would be in the old US$ and thus effectively wiped out, but Puplava did not address this issue it appears... OK, Mish what would be the impact of such a scenario under your viewpoint: 1) money supply = Money plus Credit, AND 2) in a world of free floating exchange rates, such a devaluation would be offset by other central banks/speculators. Thanks for your time in this matter.