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

To: THE ANT who wrote (92279)	7/7/2012 4:05:03 PM
From: RJA_	Read Replies (2) \| Respond to of 218924

The world as 1970's Brazil?

To: THE ANT who wrote (92279)	7/8/2012 12:56:24 PM
From: Hawkmoon	2 Recommendations Read Replies (1) \| Respond to of 218924

Hard to hold cash They can add a zero any time or make you exchange old notes for new notes at a certain exchange rate. US corporations seem to disagree. modeledbehavior.com I believe they are doing it because they anticipate having the opportunity to pick up some non-USD assets at fire-sale prices overseas. Additionally, the current CDS "casino" is distinctly biased towards the destruction of collateral. So why not hold cash? Even in a negative interest rate environment (as we're starting to see in Europe, and likely soon to come to the good 'ol USA due to capital flight), paying banks to hold your deposits makes sense if asset prices are deflating at a quicker pace. What I see is that there has to be a continued period of de-leveraging and the Fed is going to be reduced to trying to keep the economy "treading water" to escape from drowning. And given that there are any number of other drowning economies trying to pull us down, the situation is growing more and more desperate. But devaluing the USD wouldn't seem to make sense in this environment, certainly not when other countries would immediately follow suit nullifying any advantage. Not until a lot of debt has been erased via defaulted, or de-leveraging. People, and countries, are just in too much debt to have any strong demand for additional credit. It's going to require getting people back to work, generating income so they can deleverage, or it's going to require forgiving that debt to free up economic demand. Hawk