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

To: Real Man who wrote (23465)	10/13/2009 1:06:13 PM
From: Tommaso	2 Recommendations Read Replies (1) \| Respond to of 71475

Years ago, I greatly underestimated Volcker's ability to stop inflation by raising interest rates towards 20%. A similar move now would drive the equity markets down at least 50%, maybe as much as 75%, from where they are now and would impoverish tens of millions of retired persons--indeed anyone whose fortunes have become enmeshed with equities. Public pension funds and educational endowments are far more into equities than they were in the 1970s and the damage would be huge to them. I doubt that the political will is there to go the Volcker route now. It would seem suicidal to too many people. So instead we will have the opiate of devaluation and inflation.