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

To: ggersh who wrote (29016)	6/18/2010 10:59:47 AM
From: Real Man	Read Replies (3) \| Respond to of 71456

Yes, the abuse of the dollar as the global reserve currency has been going on for decades. In particular, this led to US becoming the global financial powerhouse, the position we unlikely surrender peacefully. US credit rating agencies participated in speculator schemes to crush foreign currencies, in order for US companies to utilize cheap foreign labor. That was the key cause of the Asian currency crisis; it is the main cause of what's happening in Greece now, although now the attention of US-led policies shifted to distracting the global financial community from the sick fundamentals of the dollar. This has been going on for a while. Eventually all of these problems will come home. Now we don't have much of the real economy to count on. So, for sure, the crisis will be very bad, and will involve a depression, 25-50% decline of the real GDP, because the US economy is badly out of balance and needs adjustment. However, depression may happen along with a major depreciation of the purchasing power of the dollar. So far Ben responded to the financial crisis by effectively blowing the original money supply 3-fold, which is a lot more than gold being revalued from $20 per Oz to $35 per Oz during GD. The problem is, during GD we were the industrial powerhouse. Now we are a dying superpower with gutted manufacturing base. IMHO.