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

To: Real Man who wrote (28492)	5/10/2010 7:35:20 AM
From: gregor_us	7 Recommendations Read Replies (1) \| Respond to of 71475

The fundamental problem now is that the developed world has lost what I call "flow." In order to have flow, you need to be churning affordable energy through your innovation machine, and getting output in return. The developed world probably started to struggle with flow over 15 years ago. That's when we turned to credit. To some extent we are trying to suck the flow off the developing world, which is using coal to get their flow. Make no mistake, the developing world has flow. However, it's just not enough to support our Empire of Paper. We can be confident that there is not nearly enough flow to support either the paper that crashed into 2008--or the new paper created post 2008 by developed world governments. Voila. The result is SHTF, or whatever you want to call it. There is too much paper, and it can never be services, let alone paid back. I will change my mind only under the most unusual circumstances. Like: Russia can, and chooses to, provide oil to the OECD at 10 dollars a barrel for 5 years. In other words, I won't be changing my mind anytime soon. :-) G