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

To: ayn rand who wrote (24338)	11/16/2009 4:29:17 PM
From: Real Man	Respond to of 71456

Our GAAP-measured budget deficit comes pretty close to Zimbabwian 50% of GDP. It's 30%, but the scale is the same. The difference is, we keep most of the stuff off budget -g- shadowstats.com crybelovedzimbabwe.blogspot.com Why has this happened? 1. The Zimbabwe government has abandoned any pretext of fiscal and monetary discipline as the budget deficit is now at an astonishing 50 per cent of GDP. Sustainable deficits are thought to be about 3 per cent.

To: ayn rand who wrote (24338)	11/16/2009 5:41:27 PM
From: Real Man	1 Recommendation Read Replies (1) \| Respond to of 71456

Hyperinflation is the looting spiral, err, when the real economy is looted into oblivion. That's why I left Russia - that country is still mired in one of these, despite the economic boom, which really had to do with high oil prices. I have a much better opinion about the US, but the looting spiral must be broken, or the economy and the nation will be forever cursed. Forever means in your life time - the GDP of Zimbabwe dropped from 1980, in US dollars, and US dollar does not have the same purchasing power in 2009 as it did in 1980. They don't call this the worst possible outcome for nothing, it can literally last for decades and completely ruin the country economically. The Zimbabwe looting spiral was broken in 2009, and the country instantly started to recover. -ng- Message 26103240 Debt collapse folks advocate "deflation", and hyperinflation not an issue for some time. I wonder how they will react to 10% CPI in 2010 or 2011, which is a distinct possibility, IMHO, given all the printing, and no, that is not hyperinflation. It indeed takes a few years and quite a bit of additional printing for inflation to roll into that kind of a meltdown.