Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Skeeter Bug who wrote (27439)	3/14/2010 8:02:33 AM
From: DebtBomb	Read Replies (1) \| Respond to of 71456

Anyone think China (our new boss) will let ben destroy the dollar? Remember, China, Russia, et al....blame the U.S. for the financial collapse. China wants US reassurance over dollar China's premier calls on Washington for `concrete steps' to reassure Treasury bill investors .On Sunday March 14, 2010, 12:01 am EST BEIJING (AP) -- China's premier expressed concern about the U.S. dollar and called on Washington on Sunday to take "concrete steps" to reassure Beijing about the safety of its huge Treasury bond holdings. "Any fluctuation in the value of the U.S. currency is a big concern for us," Premier Wen Jiabao said at a news conference. "We cannot afford any mistake, how slight it is, when running our financial assets," he said. "I would like the United States to take concrete steps to reassure investors." China has pressed Washington to control its yawning budget deficit and prevent inflation that would erode the value of the dollar and China's holdings. The premier said Treasury values were a matter of the "national credibility" of the United States. finance.yahoo.com

To: Skeeter Bug who wrote (27439)	3/14/2010 8:06:03 AM
From: DebtBomb	1 Recommendation Read Replies (1) \| Respond to of 71456

Skeet, everyone thinks ben will collapse the dollar and hyper-inflate us. I think ben wants to, but.... IMO....China and peak oil will stop him....we'll see. I think he's trapped. Remember, China, Russia, et al....blame the U.S. for the financial collapse.

To: Skeeter Bug who wrote (27439)	3/14/2010 8:10:44 AM
From: DebtBomb	1 Recommendation Read Replies (1) \| Respond to of 71456

If ben continues on....printing and buying toxic crap....China (our new boss) may pull off the nuclear option on paper crap....and oil and gold will likely skyrocket, IMO. Something to watch out for. Remember, China, Russia, et al....blame the U.S. for the financial collapse.

To: Skeeter Bug who wrote (27439)	3/14/2010 8:14:29 AM
From: Real Man	1 Recommendation Read Replies (4) \| Respond to of 71456

Deflationary and derivative ka-boom, I believe. However, a note to the bears - it can be delayed because govt stimulus will run throughout 2010. The Fed does monitor economic activity. They have hordes of govt. workers doing just that. I do believe Real Estate market will deteriorate considerably if or when the Fed stops buying MBS (where the printing goes), and the govt. cash for shacks program runs out (end of April). Moreover, the alt-A "true bubble" loans are just starting to reset, the resets are scheduled to pick up considerably this year. That said, the resets are no longer the main problem for the Real Estate market. The housing bubble collapse illness has infected the PRIME Re market because many folks are out of jobs. That problem is far bigger than resets, and foreclosures will immediately pick up once the govt. gets off their program. That will likely drive housing prices even lower in many locations. These are the risks. I believe they will immediately show up once the Fed stops printing to buy MBS, and deflationary dynamics will manifest itself. Once it does, I believe the Fed will restart the printing press. That, however, remains to be seen. Sovereign defaults and devaluations will also pick up around the globe. Interest rates in the United States could go up, simply because of the enormous budget gap that requires financing. Our govt. has to sell more bonds than the Chinese, and there could be few buyers (Who has the money these days, or wants them? Xept the Fed) In other words, we are not out of the economic hurricane, we are in it's eye, where it's calm. IMHO.