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To: ckilmer

The productive capability of the US is being hollowed up and replaced with printed money. It’s like a heroin high, great when the junk is floating through your brain, but when it stops ...
I don’t know if oil will do enough to replace it.


8 posted on 05/31/2013 12:38:05 PM PDT by Old North State
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To: Old North State

Interesting proposition in a post last week.

The dollar will both deflate and inflate.
The “cyberdollars” will inflate infinitely, as in, disappear,
whilst the actual currency that you hold in your hand will deflate and become 100 times face value due to its relative scarcity.

Actual physical money is about 3% of the total money supply.


9 posted on 05/31/2013 12:40:19 PM PDT by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: Old North State
It’s like a heroin high, great when the junk is floating through your brain, but when it stops ...
10 posted on 05/31/2013 12:42:41 PM PDT by nascarnation (Baraq's economic policy: trickle up poverty)
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To: Old North State

The productive capability of the US is being hollowed up and replaced with printed money.
********
Printed Prosperity. Money for nothin. LOL

You just know this won’t have a happy ending. Just another financial bubble in the making.


16 posted on 05/31/2013 2:08:11 PM PDT by Starboard
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To: Old North State

Here’s a ten year chart of the dollar. Notice how its been going mostly sideways since 2008.
http://bit.ly/K1ENOe
My wag is that because of rising US oil production —the break out will be to the upside. (Why? even incompetently run countries like brazil have strong currencies because they are oil independent.)

but we’ll see.

you too have to submit to the same discipline of the data.

if the dollar breaks out to the downside then your thesis is right. fiat money kills the value of the dollar

if the dollar breaks out to the upside —then oil, the improved balance of payments and 50-100 trillion dollars worth of new oil deposits in the USA backing the dollar...trumps fiat money.


19 posted on 05/31/2013 2:40:24 PM PDT by ckilmer
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