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To: mikelets456
No.

The dollar has been falling occasionally without much interruption since 1973. But it isn't going to zero. The financial crisis consisted (and consists) in an epic crowd of credulous fools all betting that it would at once, all being wrong.

If the dollar in the future were going to be worth zero, borrowing dollars to buy any real asset in existence would be an automatic win. Everybody tried that, and they can't pay back the dollars, because those dollars are not worth zero, but oh about 3-4 times as much as the reckless bettors expected (in oil, in houses, in every industrial commodity you can name...).

Central banks that tighten enough to break bubbles even if it wipes out $10 trillion in wealth do not see repudiation of their currencies. It is all reckless slander and always was. Stop regurgitating it, already.

15 posted on 05/04/2009 1:40:54 PM PDT by JasonC
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To: JasonC

the increases in (unpublished but obvious) m3 and in the federal debt over the coming years is not a trivial change - the government expects to possibly run a 2 TRILLION dollar deficit this year, and given the party in power, I certainly would expect 1T deficits for the rest of his term.

The US has (has not had since the bush deficits, certainly) any politically possible answer to the federal debt besides inflating, and with the currently monstrosity, it is even worse.

Longer-term this is something I take quite seriously now. As far as I can tell, the US treasury is being looted under the pretext of crisis. These are times that have certainly not been seen in living memory.


54 posted on 05/11/2009 8:58:24 PM PDT by WoofDog123
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