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

To: Wyätt Gwyön who wrote (23672)	10/21/2009 3:02:22 PM
From: gregor_us	3 Recommendations Read Replies (3) \| Respond to of 71406

It gets destroyed against stuff. That's been my view for years. All the other paper currencies will get dragged at least a good part of the way to FED-led debasement. Then it will be a question as to whether some of these will get off that train in time. I never really understood the argument that the USD can't be destroyed because it can't be destroyed against other currencies. I always took that part of the equation as being agreed upon. Besides, I think people like Janszen correctly point out that the reserve currency doesn't go to zero like an Argentine peso. It just gets "decimated" over time in the classical sense of being cut down eventually to a 10th of its former self. As you know I am an inflationary-depressionist. Lots and lots of deflation in the system as the USD purchashing power increases against all sorts of goods from houses to shopping centers. And then it will crash against gold, oil, coffee, copper, and will fall the most against certain currencies like AUD and CAD. Finally, I agree with Einhorn et al that the JPY could crash first. But again, I think it best to simply grant that the unit of account to measure all this stuff might be just as easily gold as other forex. One of the reasons that the USD will increase in purchasing power against US real estate, imo, is that US real estate remains way too expensive on a global basis for what it achieves--which is nothing more than giving you shelter and position while you access a salary. If those salaries are unlikely to see much growth, I just don't see anyway to "pay back" a mortgaged purchase of say a 500K US city suburban home, with future earnings. But I digress. G