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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Chispas who wrote (106924)	1/10/2010 4:25:38 AM
From: clochard	3 Recommendations Read Replies (2) \| Respond to of 110194

The bailouts simply prevented a meltdown of the financial machinery. It won't stop the fallout resulting from the debt pile in general, which will take many years to solve depending on how fast it can be written off, forgiven, paid off, etc. The Japanese have managed to hide debt forever so they are still in a deflationary hole. A similar fate could afflict the west in varying degrees.

To: Chispas who wrote (106924)	1/10/2010 9:01:38 PM
From: Skeeter Bug	Read Replies (2) \| Respond to of 110194

Chispas, but money in the US isn't being debased - that's the whole point. money is debt backed. debt (ie, money) is decreasing in the united states as a whole. market-ticker.org if debt goes down, money goes down - and it doesn't matter how much is printed. printed money only matters inasmuch as it increases debt (money supply). i don't think most people know that money is debt backed. so the real question becomes, how can americans take on more debt? they can't. the government covered for them for almost 1.5 years, but that jig looks to be up. once the stimulus ends, that debt chart will be gripped by gravity. china isn't buying more debt. japan may well sell american debt. it is so bad that the government is talking about forcing 401ks and IRAs into treasuries! that will inflate the stock market like nafta inflated jobs. giant sucking sound II? i think most folks are making one grave error in greenspan's and bernanke's claims to print unlimited money. they did make that claim, BUT ONLY TO PROTECT THE BANKS! once the banks are moved out from in front of the train they created, neither greenspan nor bernanke has promised to print a single dollar! my bet is that they don't, sending america into a time of SEVERE deflationary austerity that will allow the banks to buy up american assets for pennies on the dollar. they may then inflate at that time to deal with the foreign debt problems. i see major pain coming - china not buying treasuries, japan selling treasuries, fed moving out of QE (banks are "safe" now that fannie and freddie has unlimited money to bail out their toxic home loans and mbses!) and retirement accounts being confiscated to cover government spending... oh, and housing continues to fall and will fall hard once rates move up to cover for the requisite debt funding of government. who will benefit from an increase to 8% interest rates? ta da - bankers!!! the government is saving the too big to fails so they can be around to loot "we, the people" once the depression is allowed to proceed. until i see the government print money to support "we the people," i think it is a mistake to think they will print non debt backed money to infinity and beyond any time soon. if the money is debt backed, the interest eats away at an economy already saturated with debt (topped out in money supply). not saying i'm right, just saying this is my current view. watch current events and file these thoughts away. if the government starts cracking down with austerity for the people, you'll have a good idea this view is the reality. we are pretty much reaching that point in time were a choice has to be made.