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

To: ggersh who wrote (35498)	2/22/2011 1:49:00 PM
From: Giordano Bruno	Read Replies (1) \| Respond to of 71463

Does this look pekid? quotes.ino.com

To: ggersh who wrote (35498)	2/22/2011 3:26:01 PM
From: roguedolphin	1 Recommendation Read Replies (1) \| Respond to of 71463

<<"Doesn't this logic have Zimbabwe written all over it?">> CLIMAX GRAND DECEPTION kitco.com ................"The price inflation that has begun to show itself in clear terms will be passed off with pure economic deception, and extreme statistical fraud. The effect of higher prices will be called economic growth. The price inflation within the adjustment process with full motive will grossly under-estimate the actual rising price rate. Therefore, the adjustment off the nominal economic activity will be grossly inadequate. The 10% to 12% price inflation will be called 3% to 4%, and thus a 6% to 9% error in the Gross Domestic Product will be made. The consequence will be that a powerful recessionary surge downward will be called a positive 4% to 5% GDP growth. Credit goes to the stat rats who betray my field of expertise. The deception will calm public fears on the highly destructive effects of Quantitative Easing #2 and its price inflation side effects. Actually it is more like direct effects. No longer are the QE1 effects isolated to excess bank reserves held by the USFed. They were not excess anyway, since US banks simply held their loan loss reserves at the USFed. The main point is that price inflation will rise sharply, called economic growth, a process already begun. The USGovt and Wall Street handlers will ignore it, under-state it, and herald the return of growth as success of policy. The reality will be less growth, in a deeper decline into recession. It has been my contention for the entire seven years of the Hat Trick Letter that the topic of inflation has been the most egregiously misunderstood and most common used deception device used against the American people, as the USEconomy has deteriorated in grotesque fashion for 20 to 30 years. They have been told to hedge against that inflation by home ownership, which has backfired in a national catastrophe. The underlying cause of the deterioration is massive monetary inflation and price inflation, manifested structurally as an over-priced US labor market that has sent jobs to Asia since the first migration phase to the Pacific Rim in the 1980 decade. The semanal event was the Vietnam War, which urged the broken Bretton Woods accord.................."

To: ggersh who wrote (35498)	2/22/2011 3:56:56 PM
From: roguedolphin	4 Recommendations Read Replies (3) \| Respond to of 71463

Listen Up Folks By Karl Denninger Posted 2011-02-22 13:05 If you read the tea leaves - and the rumors - you're damn close to being convinced that Bernanke is going to be forced to pull system liquidity. I offer as evidence cotton, wheat, corn, soy and more. All in the toilet. Crops suddenly got better? No. In fact there's a report out stating that huge parts of the nation will likely suffer monstrously bad flooding - which just happens to be prime cropland. No, what's being taken off the table today are liquidity bets. Bets that Bernanke would continue QE2, then do QE3, 4, 5, and on. Not today. Today the belief is that he is going to have to stop. Do you think he read my Ticker from the weekend? ( #msg-60167810 ) I doubt it. But can the market force Bernanke to stop? You bet it can. The world can riot. Libya can spread. Baharain can go down. Maybe even Saudi Arabia. There's no "second chance", no "second look", no time to make a decision once those events happen. The consequences will be catastrophic and immediate. I've warned of this since 2007. I'm convinced I'm right - more so today than I was then. Here's the problem folks - even on the most-reasonable read of the market's actual earnings power less the pumpage, we get a "fair value" around 900. But that includes the federal government's pumpage. Take that out, 13% of GDP disappears overnight. Then the knock-on effects show up, and likely double that. What does the SPX trade at if we have a 25% contraction in GDP, with virtually all of it coming out of margins? Hint: Name the industrial companies with a pre-tax operating margin in excess of 25%. It's a short list. Be careful folks.... they're handing these out today for people who are too-highly leveraged.... market-ticker.org