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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (104745)	9/1/2009 2:03:28 PM
From: GST	Read Replies (1) \| Respond to of 110194

Question 1: I have huge debts with hefty interest rates. I had a big cut in my income. Nobody wants to buy my assets. My plan was to borrow more money to maintain my standard of living but my access to credit has all but dried up. How do I service my debts? Answer 1: You repudiate your debts and you go bankrupt. Question 2: What if you are a country instead of a person? Can you repudiate your debts? Answer 2: That is what the US is doing with every new dollar it prints. Question 3: What happens to the currency of a country that repudiates its debts? Answer 3: It plummets in international purchasing power, driving the costs of all imports into the stratosphere. The point? The answer to the inflation riddle is entirely outside your frame of reference if you look at the current situation in a national context.