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

To: GST who wrote (24375)	11/17/2009 8:02:53 PM
From: Real Man	1 Recommendation Read Replies (1) \| Respond to of 71446

Technically, Ben can print and raise at the same time, if needed. He did it in 2004-2006, but back then we were in a credit bubble, so a tiny sprinkle of $8 billion immediately caused fire. That slowed down the dollar some. I think it even had an up year in 2004, but I may be wrong. Everything is fiat, so when you are shorting the dollar, your bet is that Trichet is more prudent and won't print, since the USD index is essentially inverse Euro. You can do that, play the trend in forex, but all of them listen to every sound from the owners of respective printing presses who call themselves "policy makers". Most play the carry trade anyhow, cause it pays. Sometimes these printing press owners choose to manipulate currencies. It's not true that it does not work if there is joint intervention. In fact, most major tops and bottoms are achieved through exactly that, and BOJ kept the Yen where they wanted, in a range between 105 and 120, for quite some time. Ditto Bank of China. They can keep the Yuan fixed to dollar forever. It's the other side that causes problems, a CB can't make a currency strong without ruining the economy. Weak? No problemo. -g-

To: GST who wrote (24375)	11/18/2009 1:34:09 AM
From: Skeeter Bug	2 Recommendations Read Replies (1) \| Respond to of 71446

GST, why is the bond market predicting deflation? yes, some of the debt is being monetized, but lots of it is not. max keiser came up with a theory that i think explains the current situation very well. on one side, you have unlimited debt that drives the fear of deflation. on the other side, you have unlimited printing powers that drives the fear of serious to hyperinflation. the banks will use both tools to maximize their profits at the expense of the people. max is long and strong gold, but he is predicting the banks pull the "deflation card" in early 2010 to milk trillions more from the tax payers to keep the zombies walking. i think he is right. the amount of bank debt could be in the $100+ trillion range - that is just staggering. my ira is long gold/silver companies with an RWM hedge. my regular account will be long gold and silver bullion with a short IYR (or similar) hedge. if we get that peek into unlimited debt and a deflation scare hits, i will make money to ultimately switch into 100% bullion. if we go into hyperinflation, i make money, too and will eventually just ditch iyr if deflation becomes highly unlikely.

To: GST who wrote (24375)	11/18/2009 1:43:00 AM
From: Skeeter Bug	1 Recommendation Read Replies (1) \| Respond to of 71446

3. flash unlimited debt (and they have it - mark to myth and SIVs are NECESSITIES b/c of this unlimited debt), profit from stock market collapse, retail investors get killed, milk trillions from tax payers to "save the system" again, reload on stimulus and ramp the markets one more time. i vote for #3. how else will the bankster reload their billion dollar bonus pool with tax payer money? they need billions in bonus money and they can't earn it considering all the hidden trash on their books! they won't rob america again at spx 1400. at spx 700 they will, though. easily. in that case, the dollar will be much higher and gold will likely be much lower. when they print their way out of that mess, though, we may go weimar.