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: Giordano Bruno who wrote (31842)	11/9/2010 8:56:07 AM
From: Real Man	2 Recommendations Read Replies (1) \| Respond to of 71419

No, I am pro reform, QE is SSDD. They need to reform Wall Street and the Fed. Stable money and balanced budget would be best, but we are way off the rocker on that one. Nationalizing Fed dealers and canning the Fed and derivative contracts would be a good start, but it's difficult to implement. Due to the Fed/Treasury counterparty bailout decisions in 2008 + quantitative easing policy, Fed money center banks are now awash with money and impossible to shut down. In other words, the moment to act has passed. They could have let AIG/Fannie blow, then nationalize the counterparties. Right now the Fed is channeling printed money directly into the non-productive sector of the economy, and the result of that will be a disaster. They should channel money into productive sector. So: What I am saying, it's too late! We'll have to wait until the NEXT blowup, which is coming, because the underlying imbalances are amplified, not cured. Moral hazard exponentiated. This is BAD, as ggersh says, and we are pretty much scroomed. Sometimes the market economy finds a way to cure itself despite dumb government decisions. We have to watch all developments. Maybe we get lucky, but I don't hold much hope for that -g-

To: Giordano Bruno who wrote (31842)	11/9/2010 11:34:14 AM
From: Horgad	Respond to of 71419

But we are not talking about "classic" inflation. We are talking about the destruction of a fiat currency. I am understanding more and more that these are two entirely different beasts. If the government gave us 100% employment, the currency would still be destroyed. Quicker if the government workers produced no wealth and slower if they produced some wealth inefficiently (like communism). Lol, but at this point communism was/is probably more efficient at generating real wealth than the mess that we have now. The government should be printing money to buy farmland and then hire workers for it. It would be much better, anyways, than giving it to banks and wallstreet.