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Strategies & Market Trends : The Residential Real Estate Post-Crash Index-Moderated -- Ignore unavailable to you. Want to Upgrade?

To: ggersh who wrote (89959)	5/3/2013 1:48:26 AM
From: GST	Read Replies (1) \| Respond to of 119360

If we went to 7% at this point, given the financing needs of the US (i.e. the gap between national spending of all kinds -- private and public -- and savings of all kinds -- none), the timetable to bankruptcy would be compressed as interest on debt obligations would skyrocket and sources of debt would dry up. A plunge in the dollar would add pressure to interest rates as currency risk would need to be factored into interest rates. 7% could go double digits in short order, snowballing the process. Unemployment would head up again into double digits. The banking system would again be taken to the brink -- possibly over this time. Now, assuming this is more or less in the ballpark, do you think that the primary cause of the current situation is printing? Or is printing simply a way of masking the problem. If the latter, what is the real problem?