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

To: ggersh who wrote (26077)	1/6/2010 6:19:56 AM
From: Real Man	Read Replies (4) \| Respond to of 71452

Today the whole world is on Law's fractional reserve system, so, we don't need to worry. -g- I tried to find how long the depression lasted after Law, but so far no success. This will result in a prolonged economic depression, and there is no way around and no fix, just time.

To: ggersh who wrote (26077)	1/6/2010 6:42:55 AM
From: Real Man	Read Replies (1) \| Respond to of 71452

Most likely we'll see temporary stabilization followed by inflationary holocaust, which, in turn, will bring about another major round of defaults. Don't forget North of 500 Trillion notional in rate swaps. It is not likely this business cycle will be " normal". In fact, I would expect recovery to be derailed as soon as the printing stops. Some time soon the bears will get upper hand. Derivatives blew up, now the markets are bubbling on life support. Bubble dynamics requires credit expansion, and we are stretched beyond limit relative to GDP.

To: ggersh who wrote (26077)	1/6/2010 1:56:04 PM
From: Real Man	3 Recommendations Read Replies (1) \| Respond to of 71452

Quotes by Thomas Jefferson on Monetary Policy Lots of goodies here: rapidtrends.com “Our public credit is good, but the abundance of paper has produced a spirit of gambling in the funds, which has laid up our ships at the wharves as too slow instruments of profit, and has even disarmed the hand of the tailor of his needle and thimble. They say the evil will cure itself. I wish it may; but I have rarely seen a gamester cured, even by the disasters of his vocation.” ~Letter to Gouverneur Morris, 1791 “All the capital employed in paper speculation is barren and useless, producing, like that on a gaming table, no accession to itself, and is withdrawn from commerce and agriculture where it would have produced addition to the common mass… It nourishes in our citizens habits of vice and idleness instead of industry and morality… It has furnished effectual means of corrupting such a portion of the legislature as turns the balance between the honest voters whichever way it is directed.” ~Letter to George Washington, 1792 “The trifling economy of paper, as a cheaper medium, or its convenience for transmission, weighs nothing in opposition to the advantages of the precious metals… it is liable to be abused, has been, is, and forever will be abused, in every country in which it is permitted.” ~Letter to John W. Eppes, 1813