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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (486051)	5/7/2012 6:00:53 PM
From: Maurice Winn	4 Recommendations Respond to of 793843

So sticking with reasoning rather than exponential hyperbole and arm-waving: <Then the economy will go into paralysis until we find the courage, focus and resolution to do something about it. Instead of hyperinflation or deflation there will be a major financial dislocation, which means painful re-pricing of financial assets. > You say that means prices of financial assets will fall, presumably not by 2% or 5%, but more like a market-clearing 80%. Do you have a different figure in mind for "painful re-pricing"? 7.7%? 42%? And presumably he means it won't take 80 years or even 10 years, but more like over the next year or three. That means it is much better to hold US$ if he is right. While I have a little stash of cash for sundries, my experience over a life-time, and reading over a few life-times is that stashes of cashes get crashes. It's not very normal for the pixelation processes to result in deflationary painful re-pricing of financial assets, though it happens from time to time when bubbles have burst [Biotelecosmictechdot.com and housing speculation busts]. When that does happen, as Big Ben promised, he will again launch his helicopters to prevent a deflationary cascade into delayed market-clearing mayhem beyond the event horizon of financial black holes where all is consumed into a singularity. It's true things can get bad, but even then, such as post-Gorby Russia, mostly people don't head for the hills and shoot it out with neighbours for the remaining wildlife hiding in the hinterlands. Look at Venezuela. Even Zimbabwe gets by, more or less, though Liberia and Sierra Leone are nothing to write home about as places to move to. The USA is far from his ABCD hyperbolic hyperbole. My hyperbole is asymptotic rather than parabolic or exponential. With Ron Paul as president, the USA will have a chance of getting back to what made it great - which was not legions of invaders from Mexico free-loading on producers, or battalions of government "workers" telling everyone that they can't do things, but if they do manage to do something, they have to pay half of it to the feather-bedded spivs. Mqurice