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

To: Robin Plunder who wrote (43975)	1/9/2012 8:43:06 PM
From: Real Man	Respond to of 71475

heraldica.org Yeah. -ng- Well, they will probably print as much as needed to keep the system from blowing up, and we will teeter on the edge for quite some time. So, a nasty stagflation and slow economic growth is the answer for the time being, meaning that it could easily tilt into something else.

To: Robin Plunder who wrote (43975)	1/10/2012 6:02:37 AM
From: Real Man	Read Replies (1) \| Respond to of 71475

In general, no, a CB does not have to monetize all debt. They just have to monetize some, because the banking system will take care of the rest. A pretty small fraction. This "solution" may lead to a problem, the credit bubble inflating even further relative to GDP. Naturally, the solution is inflate or die, so it leads to significant INflation, but not hyper. A useful metric to watch in this process is total debt to GDP ratio, but, even if it starts to drop (NOT the case yet), the bottom of the crisis could still lie ahead! Of course, walking on the edge of unstable situation means one can fall one way or the other