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


To: gregor_us who wrote (22334)8/25/2009 8:50:27 PM
From: Real Man  Read Replies (1) | Respond to of 71432
 
It will take some time for serious inflation
to really heat up, but much less time
than one would normally expect a secular move
to last. 3-5 years? A currency crisis is
what would happen in USA, IMHO,
if the country was not too big to fail.
Kinda like CA, only all 50 states at once -g-

Here we are seen bubbles again,
another crack up boom, and that will
eventually spread to commodities.
As assets rise, debt will get paid and
hyperinflation will commense.



To: gregor_us who wrote (22334)8/25/2009 9:15:23 PM
From: ggersh  Respond to of 71432
 
Could it not be just another bubble? -ng-



To: gregor_us who wrote (22334)8/25/2009 9:47:13 PM
From: axial1 Recommendation  Respond to of 71432
 
Inflation's here? Because markets are overvalued? By that reasoning, when the markets sell off, it's gone.

Who knew it would be that easy? ;-)

Jim



To: gregor_us who wrote (22334)8/26/2009 4:39:06 PM
From: benwood  Respond to of 71432
 
While on the surface, with vast uncertainties about "stuff" in the future, it does sound compelling to think that claims on stocks are claims on the underlying value of a company.

But isn't that always the case? And in the usual case (fundamentally), there is more bidding on companies that actually turn a profit?

It has never worked out well in the long run to own money losing companies; and it has worked out better to be in companies less overvalued.

Future rapid inflation is certainly a good reason to be in any stock which has pricing power. Ultra low interest rates are another reason to be pushed into stocks. (I think my CREF money market fund has been at 0% for many months, another I believe is negative.) Pump and dump with a duplicitous press occurs daily on a macro scale. Green shoots? What a load of crap.

I believe that if inflation erupts in the near future, job losses will be catastrophic. I wouldn't rule out inflation, however -- it will usher in our rapid slide into 3rd world living conditions, and some serious sliding is in the cards.