Posted on 03/15/2009 4:49:00 PM PDT by Para-Ord.45
... the perfect storm against the United States dollar and against the present dollar-centric global financial order....For example, a number of experts warn that US Treasuries are increasingly taking on the characteristics of a bubble,
By facilitating and encouraging the massive global flight into Treasuries, and by issuing a huge new supply of US sovereign debt... As the US government sucks all the air out of the global credit markets... ...high yields demanded by investors translate into high costs and mounting losses by banks across the financial system. The situation is moving rapidly to a potential massive wave of bank, corporate and government defaults.
These huge and dangerous distortions in the global financial order are due largely to US government policies regarding Treasuries ...
Investors will begin to stampede out of financial assets such as Treasuries and into hard assets like precious metals and certain commodities whose price has been severely beaten down.
(Excerpt) Read more at atimes.com ...
I agree with argument in this article, and I am afraid that there will be great currency instability - if not rampant inflation - in the near future.
What is meant by ‘near future’?
At least we will be able to pay off our inflated mortgages with a wheelbarrow of cash.
It’s odd to say that precious metals are “beaten down”. Hardly.
If only I knew exactly when! Well, I shall take a punt, and say that we will see significant inflation before the end of this year, 2009. Gathering then to an absolute storm, as all this printed paper flies about.
In making this prediction, I am going against the economists, who say the opposite - that we are facing deflation. But I do not believe them.
Very true. Inflation will take care of debts - and steal the savings of the prudent.
Is it possible to have moderate wholesale price increases yet have the dollar maintain its strength against foreign currencies this year?
Since Mama O and the other two members of the troika (Pelousy and Cathouse Reid) will keep spending money, we are bound to have high inflation. They also are cmpletely in the tank for the enviros and the Saudis, so energy will eventually start to climb (expect gasoline shortages like in the late 70s and early 80s). The collapse of the Mexican economy ad government may see a huge exodus across our borders similar to the Merial boatlift. In short, I believe we will see the sequel of the Carter years, only maybe a bit worse, probably a lot worse. The only bright spot in this gloomy picture is that the radical left may be discredited for at least another generation.
Dow 14000? Sooner Than You Think
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Dow 14000, Milk 3000 , eggs 1500 , gas 5000 .....
14000 because $100 will buy you a cup of coffee?
I do agree that stock right now is a much better idea than bonds.
The world is awash with dollars. George Bush started the flood and Obama and Congress took it to the max.
Only if your employer correspondingly inflates your salary.
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