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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (64376)	4/23/2013 12:36:13 AM
From: RMF	Read Replies (1) \| Respond to of 71588

It doesn't have to be inflation. Just look at the Middle East. Israel could at ANY time decide to hit Iran. In response Iran would probably hit us in Hormuz. All hell could break loose. The Iranians HATE the Saudis and they could hit them. I guess that would be inflationary because it would drive the price of oil through the roof, but all the geopolitical ramifications by themselves would probably drive a lot of money into gold. Then you've got the Muslim Brotherhood in Egypt and Al Queada in Syria. It's a very FLUID situation. Just look at Asia. The Japanese are pumping an extraordinary amount of money into their dead economy. What happens if they not only weaken the Yen but destroy it? You can't have a major reserve currency suddenly go belly up without MAJOR repercussions. The Chinese have a lot of reserve cash on the government level, but internally they are leveraged up the wazoo. They are trying to develop a middle class, but that middle class could quickly be crushed if this real estate bubble they've got suddenly goes bust. There's more danger in the world than just inflation.