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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (75184)	6/13/2011 8:13:27 AM
From: Maurice Winn	1 Recommendation Read Replies (2) \| Respond to of 218197

Big Ben can't really go wrong. He controls the issue of QE1, 2, 3, 4 ... the politicians can take the whole country down by wastrel spending and simply taking over the Federal Reserve to Zimbabwe it into Argentinian demise along Greek, Irish, and Spanish lines. Iceland gave up and declared it Game Over - Reset. Most likely though, things will 'come right' as people have stopped using their houses as ATMs and are busy getting real jobs instead. With the US$ so low, it makes what they do cheaper for the other 6 billion people to go shopping. NZ$ is now at US83c instead of US40c not many years ago. That is a BIG change. Meanwhile, NZ is borrowing money from overseas lenders like there's no tomorrow. NZ is so small that the borrowing can go on permanently, but at some stage, creditors will draw a line. The USA is so big that they have pretty well borrowed as much as they can do. Another $1 trillion borrowed is real money, even in the big markets. NZ is only in the $100 billion range, going down at $1 billion per month. It would take 1000 months, or 100 years, to borrow $1 trillion at that rate. I'm big short NZ$ and also short JPM, WFC. Borrow and hope is the normal NZ investor process. It doesn't seem a good strategy, whether it's done on credit cards [as you say] or on house ATMs. Mqurice