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

To: ggersh who wrote (36724)	3/31/2011 8:32:30 PM
From: John	4 Recommendations Read Replies (1) \| Respond to of 71405

Yes, the growth in equities since the advent of QE have been entirely artificially engineered by the central bank printing fiat currency to buy equities and fiat bonds. I think it's setting up the "perfect storm" as GZ likes to say. Now, we have a cavalcade of bleak news... 1. Wal-Mart CEO Bill Simon expects inflation usatoday.com excerpt: The world's largest retailer is working with suppliers to minimize the effect of cost increases and believes its low-cost business model will position it better than its competitors. Still, inflation is "going to be serious," Wal-Mart U.S. CEO Bill Simon said during a meeting with USA TODAY's editorial board. "We're seeing cost increases starting to come through at a pretty rapid rate." 2. Fed Official Sees Higher Rates by Year End online.wsj.com excerpt: Trading in futures before Mr. Kocherlakota's comments were reported suggested markets anticipated a Fed increase to 0.5% early in 2012. Afterward, traders put 50% odds that the Fed will lift its rate target to 0.5% in December—up from 32% odds on Thursday. 3. Treasury Sells $29 Billion In Bonds, Bringing Total Settled US Debt To 14.311 Trillion, More Than The Debt Ceiling zerohedge.com excerpt: Now bear with us for a second: the most recently disclosed total debt was 14,211,567,662,931.23 as of March 28. This excludes the settlement of all of this week's auctions which amount to $35 + $35 + $29 billion (including today) or $99 billion. Adding the two amounts to $14,310,567,662,931.23. As a reminder the debt ceiling is $14,294,000,000,000.00. In other words, the total US debt just passed the debt limit - break out the Champagne! [...] Which brings up the question: with a government shut down looming any minute, shouldn't Congress be tackling the issue of what happens when the US enter technical default some time in the second week of April when the next battery of approximately $67 billion in new bonds are issued, which also happens to be just as tax rebate (and thus outflow) season peaks? --- So, we have great inflation and higher interest rates looming, and the federal government is choosing to simply ignore the mandatory debt ceiling limit now, federal law be damned (well, technically, there is a buffer...). Plus, home prices and home sales are falling, foreclosures are mounting, unemployment is growing again, fuel prices are skyrocketing, Japan is still being nuked, the U.S. is fighting another war with money it does not have, and the world is awash in mountains of debt that extend all the way to the U.S. flag planted on the lunar surface. Gee, I wonder how this will all end? -ng-