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To: hamvestor who wrote (25823)9/6/2011 11:04:40 AM
From: GST2 Recommendations  Respond to of 29622
 
<simplistic?> Not really -- to fail to observe the role of currency valuation in China would prevent any understanding of inflation in China. To be sure, for its own political purposes China has overheated its economy, and the hand of government can weigh heavy on scarce resources. But at root there is no question that China -- and other countries -- feel the inflationary heat of a world awash in counterfeit dollars.



To: hamvestor who wrote (25823)9/8/2011 4:52:41 PM
From: GST1 Recommendation  Read Replies (1) | Respond to of 29622
 
The clock is ticking -- look at unfunded liabilities -- $115 trillion -- equal to forty years of total tax revenue -- over a million dollars per taxpayer. Then answer this question: Do you think it is likely that the US will default on its liabilities by printing an extra few tens of trillions of dollars? And as the global 'reserve currency', do you think this will have an impact on the global economy and inflation?? Do you think the rest of the world will fund us? And when they fail to fund us do you think the US will default on its liabilities by printing a an extra few tens of trillions of dollars?

The fate of the dollar is sealed -- and the rest of the world will only escape rampant inflation to the extent that they can decouple from the dollar as the ship sinks.

usdebtclock.org