People like you and Travis McGee are among a small handful of Freepers even more bearish than I am. You make me feel like a raving optimist! LOL.
I am in denial to the extent that I can’t let myself believe in the possibility of an outright depression or a complete collapse of the currency or of the bond market, or of the dollar being abandoned as the world’s reserve currency, or of foreign money completely dumping treasuries.
Any of those would ruin us and I am just in denial over the possibility of any of them, even as I have various heartfelt beliefs that some of them just aren’t likely. China is not going to hurt itself by dumping our treasuries for example. What currency could be used as the world’s reserve today? For all of the Euro’s strength, I just don’t see it being up to the task as the world’s reserve currency. America’s financial empire is still more dynamic, more cohesive, more stable, less corrupt and more transparent than Europe is.
Anyway, at my bearish, it is always nice to hear from you and it makes me feel positively like a Freepyanna. Thank you! Somebody is more bearish than me!!!
The same sorts of computerized financials that make possible the recent rapid growth in Electronically Traded Funds (EFT's) that enable me to conveniently trade, long or short, all manner of specialized markets, currencies, commodities and precious metals is also enabling the big money players to trade and hedge between multiple currencies in a highly liquid market.
Currencies will become just like another commodity; I'll use copper to wire my house, copper or PVC for the pipes, and dollars to pay my butcher. Those in London will use pound sterling to pay the butcher, rather than dollars, but otherwise trade in the same world wide markets as do I for any significant transaction.
I anticipate that baskets of currencies, perhaps viewed as S&P 500 indexed mutual funds have been viewed by investors for the last 50 years, will become the new currency for any significant amount of money. Whereas the mutual funds traded once per day, with limits on trading frequency to perhaps once or twice per quarter, these baskets of currency will trade in real time, around the clock.