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: Real Man who wrote (36592)	3/26/2011 5:18:11 PM
From: carranza2	Read Replies (1) \| Respond to of 71406

So far I am working under a fundamental assumption that QE2 will be "it", and the printing presses will be temporarily halted. I think so, too.

To: Real Man who wrote (36592)	3/26/2011 7:29:54 PM
From: carranza2	3 Recommendations Read Replies (3) \| Respond to of 71406

A "what if" thought that may be too far out to even think about seriously. What if the Fed, as the largest holder of Treasuries, were to simply state that it no longer considers the US government bound by a huge chunk of them. In other words, it gives the Treasury a pass on substantial amount of them. A huge amount of debt all of a sudden gone. Interest payments gone. Pressure taken off the budget deficit. Pressure for tax hikes goes down. Interest rates I think go down because the full faith and credit of the Treasury rises as the obligation to pay is diminished. Other holders cannot complain, they get paid. USD probably goes up in value. Sounds too good to be true, so there is a huge flaw that I cannot see.

To: Real Man who wrote (36592)	3/26/2011 7:30:16 PM
From: ggersh	Read Replies (2) \| Respond to of 71406

Under the assumption that the printing stops, my thought would be you see a top in May which coincides perfectly with "Sell in May and go away". The big caveat is the wink and nod from the Bernank. He will tell his buddies first of course everyone else GFY. -g- After what has gone on the past couple of weeks and for the markit to recover as it has says only that the Bernank put is stronger than ever. I personally think the gig is up. -ng- Even if the economy is recovering can it survive the next leg of inflation? Ben lives in and for the bubbles he hath created. Gold hasn't seen anything yet. Clownbuck held the 2nd to last line of support. The game has started as to who wants to last man out when QE ends?-vbg- What else can stop it?