Posted on 10/13/2009 2:56:00 PM PDT by mikelike
Ruh-Roh!
Thanks for the ping.
Great post.
Most people just bring opinions. You brought data as well. Thanks for the update.
You make a great case for deflation versus inflation and lower gold prices.
Question: isn’t there a hyperinflation scenario that’s possible? Argentinian credit didn’t expand particularly but they still had hyperinflation. Same thing with post-WWI Germany. It still seems like the printing presses could cause hyperinflation without credit expansion. Is your point that that scenario is so unlikely that there’s no real reason to consider it? That all the countries will band together to save the dollar because that’s the only way they have to save themselves?
The Canadian goverment tried to peg the CD at .94, got away with it for about a month, but were overwhelmed with the rate of the USD's fall.
Soon the CD will be higher than the USD, which will drive traditional financing arrangements for Canadian imports of oil. gas, lumber , etc, out of date. The Canada trade depends on the CD being at least 6 cents under the USD.Now Canada must occupy the China seat for the USA, buying US Treasury notes. I do not think Canada has the stomach or the depth to buy US debt. If they do, they are freakin' nuts.
Canada should simply face the fact that the USA will have to buy less from Canada, and the Canadians have to look for substitute markets in Europe, Australia,and Asia.
Thank you Obama, thank you BurnIcky.The Canadians have little love for you or your jacked up idiotic national socialist policies of NOT BITING THE BULLET. You have to. The JIG, so to speak, is EFFIN UP!!!!
Listen to the sound of the whining roar of those printing presses. THAT MUST BE SILENCED! NOW.
Or soon the IRS will be looking for you to pay your taxes in a foreign currency.
John Maynard Keynes’ name should be held in infamy along side that of Karl Marx.
4Am bump! ;-)
Not now, but when our dollar is as cheap as dirt, we'll be opening all kinds of factories building toys for Chinese children..
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