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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: Canuck Dave who wrote (54148)8/25/2009 9:51:35 PM
From: dvdw©  Respond to of 217764
 
lol....ps
To: Nick_ who wrote (14609) 8/21/2009 2:38:41 PM
From: ahhaha Read Replies (1) of 14618

Money creation is negative and many prices continue to rise. This causes a squeeze in world cash. Therefore, the dollar should rise.



To: Canuck Dave who wrote (54148)8/25/2009 9:51:44 PM
From: Snowshoe  Read Replies (1) | Respond to of 217764
 
Reflection on Bernanke
youtube.com



To: Canuck Dave who wrote (54148)8/26/2009 8:54:41 PM
From: TobagoJack  Read Replies (2) | Respond to of 217764
 
just in in-tray

Is The Fed Enabling Foreign Central Banks To Swap Out Their Agency Debt Into Treasuries?
zerohedge.com

<snip>

The Federal Reserve has effectively been monetizing far more US government debt than has openly been revealed, by cleverly enabling foreign central banks to swap their agency debt for Treasury debt. This is not a sign of strength and reveals a pattern of trading temporary relief for future difficulties.

This is very nearly the same path that Zimbabwe took, resulting in the complete abandonment of the Zimbabwe dollar as a unit of currency. The difference is in the complexity of the game being played, not the substance of the actions themselves.

The shell game that the Fed is currently playing does not change the basic equation: Money is being printed out of thin air so that it can be used to buy US government debt.

When the full scope of this program is more widely recognized, ever more pressure will fall upon the dollar, as more and more private investors shun the dollar and all dollar-denominated instruments as stores of value and wealth. This will further burden the efforts of the various central banks around the world as they endeavor to meet the vast borrowing desires of the US government.

One possible result of the abandonment of these efforts is a wholesale flight out of the dollar and into other assets. To US residents, this will be experienced as rapidly rising import costs and increasing costs for all internationally-traded basic commodities, especially food items. For the rest of the world, the results will range from discomforting to disastrous, depending on their degree of dollar linkage.