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

To: ayn rand who wrote (22309)	8/25/2009 5:38:28 AM
From: Real Man	Respond to of 71426

Long enough. Current account deficit is always equal to capital account surplus, so a substantial drop will indicate reduced foreign investment into treasuries, even as the budget deficit is soaring. That will put an upside pressure on rates.

To: ayn rand who wrote (22309)	8/25/2009 11:29:20 AM
From: Real Man	6 Recommendations Read Replies (1) \| Respond to of 71426

The Federal Reserve: Instigating Crisis Since 1913 minyanville.com “Paper money eventually returns to its intrinsic value -- zero.” -- Voltaire “The Federal Reserve in collaboration with the giant banks has created the greatest financial crisis the world has ever seen. The foolish notion that unlimited amounts of money and credit created out of thin air can provide sustainable economic growth has delivered this crisis to us. Instead of economic growth and stable prices, (The Fed) has given us a system of government and finance that now threatens the world financial and political institutions. Pursuing the same policy of excessive spending, debt expansion and monetary inflation can only compound the problems that prevent the required corrections. Doubling the money supply didn’t work, quadrupling it won’t work either. Buying up the bad debt of privileged institutions and dumping worthless assets on the American people is morally wrong and economically futile.” --Representative from Texas Ron Paul questioning Federal Reserve Chairman Ben Bernanke ................................. The final chapter is about to be written. Our fiat currency system has proved to be a wretched failure. Within the next five years, a final crisis will bring an end to this diabolical experiment in hubris. Man is not smarter than the free markets. The US dollar is a piece of paper. It only has value because people have trust that the government issuing the paper is financially stable with rational fiscal policies. This doesn’t describe the United States of today. When the next crisis causes the dollar to collapse and uncontrollable inflation to result, abolition of the Federal Reserve will become feasible. Average Americans have been victims of the boom and bust caused by the Federal Reserve policies. The sole beneficiaries have been bankers, politicians, the military industrial complex, and the super-rich elite.

To: ayn rand who wrote (22309)	8/25/2009 1:36:57 PM
From: axial	Respond to of 71426

The Chinese often jitney through UK. It's true their direct buys are down; their indirect buys are not. Jim

To: ayn rand who wrote (22309)	8/28/2009 4:00:48 PM
From: axial	Respond to of 71426

US Treasury Bonds: Battered But Still Standing -snip- One reason that these nations have not abandoned the US Treasury market is because the US bond market is one of the few that is large enough to absorb the massive foreign exchange surpluses of these countries. The second reason that these nations would not want to upset the US apple cart by cutting back too abruptly on US Treasuries has to do with their own self interest. The self interest arises from the fact that the massive flows of capital into the US Treasury market help to keep US interest rates low and thereby help to stimulate the US economy. Given that the US represents about 25% of the world economy, these nations have a vested interest in seeing that the US economy is able to get on its feet as quickly as possible. It seems that for the time being, the US and its creditor nations are locked in a mutual relationship of dependency. The data above shows that while these nations are likely wise to reduce their dependency on US Treasuries over time, they do not have any real immediate options. Despite the rhetoric, their actions seem to be speaking louder than their words. network.nationalpost.com Jim