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

To: ggersh who wrote (37298)	4/18/2011 7:08:00 PM
From: Giordano Bruno	1 Recommendation Read Replies (1) \| Respond to of 71475

That's money the banks need for consumer and business loans. :-)

To: ggersh who wrote (37298)	4/18/2011 7:12:17 PM
From: GST	13 Recommendations Read Replies (2) \| Respond to of 71475

That is all about the current account deficit on the one hand, and our inability to legitimately finance said deficit (i.e., our inability to borrow enough to finance the current account deficit from actual savers, foreign or domestic), on the other hand. So that leaves -- printing! The reason it is so safe to buy gold is that gold ownership is the most logical hedge against printing. So long as we need to finance the current account deficit, and so long as we cannot find any way to do that without a huge leap in interest rates (think 10% treasuries) that would be needed to attract actual real savers, then printing will continue -- it is that simple. There is no 'exit strategy'. There is no 'gold bubble'. There is only gold moving steadily towards $10k as printing loads the pistol and places it to the head of the dollar. The Fed does not pull the trigger -- the Fed does not do anything more than accept reality -- and the reality is there is no longer any way to finance the current account deficit. The reality is we (you, me, all of us) have collectively decided to commit economic suicide. The Fed just keeps the gun clean and loaded. We have decisions. We choose not to make them. We have bills. We choose not to pay them. We have issues. We prefer not to face them. We could face the issues -- we could make decisions -- we could pay our bills -- we could have a vibrant society and economy. But we would have to grow up -- and it has become obvious that there is very limited capacity for adult behavior in America.