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

To: I_C_Deadpeople who wrote (38801)	6/1/2011 11:07:59 AM
From: Real Man	2 Recommendations Read Replies (1) \| Respond to of 71476

It's not merely interest payments. Ben's idea it to reflate asset and housing markets in devalued dollars, so that insolvency that plagues the economy, or, more precisely, the banking system, is "cured" and debt including government debt is repaid in devalued dollars. We will all pay higher prices as a result, of course, and if he keeps printing, banks and brokers will make out like bandits on rising asset prices without any real economic growth. Speculation will prosper, real economy will continue to collapse. It has been in decline since the late 90-s. You can make money on inflation, but it is far more profitable to speculate than to engage in productive economic activity. This dynamics leads to continued economic slump, if not a protracted inflationary depression. In other words, again, debtors will find it hard to repay debt when prices for food and gas are soaring, consumption will decline. In the end, once the credit bubble burst, there is simply no quick fix for the economic slump, print or not. That despite Ben's Ph.D. thesis and distinguished academic career -vbg-