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

To: DebtBomb who wrote (22891)	9/23/2009 9:31:29 AM
From: RockyBalboa	Read Replies (2) \| Respond to of 71456

How can the Fed go bankrupt? All they need is to enlarge their balance sheet, the fed has virtually unlimited printing power. In fact, every commercial bank could do the same if no capitalisation rules were in place. What it would do the the dollar is a different question. What the various holders of US debt think, again a different thing. But at one point a conversion of debt will take place, like selling land to the creditors in exchange for the note. The US could esily sell 15 to 20% of its land to china and reduce debt by doing so.

To: DebtBomb who wrote (22891)	9/23/2009 10:18:48 AM
From: Real Man	1 Recommendation Read Replies (1) \| Respond to of 71456

No, Faber is talking about hyperinflation because the Fed won't risk collapse and will print that 60 Trillion dollars. I tend to agree, so far the Fed has been very proactive in preserving the current financial system, not letting derivative markets collapse. The same is true for other CBs - the Ponzi scheme is global. The problem with all Ponzi schemes, of course, is that if they don't collapse, they tend to grow very rapidly, as they did for the past 10 years. So, the Fed will have to print very rapidly in order to prevent the collapse of the shadow banking system. Faber does see a market correction coming soon, perhaps, October.