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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 (104752)	9/1/2009 6:05:24 PM
From: GST	1 Recommendation Read Replies (1) \| Respond to of 110194

Compared to Australia, the current account deficit of the US is infinitely larger in size, significantly larger adjusted by population size and far more persistent as it reflects a structural deficit that cannot be eliminated short of shutting down our government. We don't have the taxes to finance our government and we don't have the savings to finance our debts. Australia no doubt has its own issues, but the US dollar alone is the reserve currency of the world. If the Australian dollar vanished from the face of the earth only Australians would notice -- sorry to say. Until the vastness of the vulnerability of the dollar comes into clear view, all you can see is smoke and confusion. To have clarity, look squarely at the dollar. All the talk about the risks to the dollar are trying to tell you something -- the dollar is perched on an unsustainable ledge -- and the ledge is disappearing. Once the ledge is gone, only fools will be hanging around speculating on a higher dollar. Everybody with a brain will be running as fast as they can to avoid having the dollar fall on them.