The Death of the Dollar

THE AMERICAN THINKER ^ | August 06, 2010 | Vasko Kohlmayer

[Psalm 144]

I honestly don’t understand what to do or think.

**********

One of those times we hold the same position.

[HiTech RedNeck]

“Don’t believe your own lying eyes.”

I wasn’t born yesterday, kiddo.

[Southack]

Falling values slam Chicago apartment owners

[HiTech RedNeck]

Another case of overheating during the Bush years. Chicago was considered a glamor spot. Next!

[HiTech RedNeck]

Face it buddy, no hard feelings, but more dollars out there in the streets mean they are going to be worth less, not more. Perhaps you consider that artificial, but nobody can deny that the Bummer has put them out there. Who’s living large? Ask the unions.

[Southack]

Your mind is closed. Sad. You’ll fail to see what is happening all around you.

That link wasn’t about Chicago in Bush years...had you actually read it, it was citing vacancy rates above 21% for the 2nd Qtr of this year for Chicago suburbs.

That’s more than one out of every 5 buildings vacant.

Only a court jester would pretend that prices are going up when every 5th building is vacant.

[Southack]

"Face it buddy, no hard feelings, but more dollars out there in the streets mean they are going to be worth less, not more."

Incorrect. Cash Dollars are trivial. There is just $800 Billion in U.S. cash money.

The rest is credit.

And there is 50% less credit today than in 2006.

[HiTech RedNeck]

You have a local cooling which was due to past overcapacity.

[Southack]

What you call "local cooling" is deflation. Lower prices today than in the past.

Not higher prices.

Not inflation.

The opposite: deflation.

[HiTech RedNeck]

A dollar that can (and likely will) be readily got at and spent is out there on the streets. Bummer has pumped them out there through his favorite children, the unions and public servants. Without that, yes there would be a screeching deflation.

[HiTech RedNeck]

This is like saying the pot on the stove cooling counts the same as the climate cooling. Bah, humbug!

[Southack]

Debt is deflationary.

Debt is cumulative.

[HiTech RedNeck]

And if you’re so big that nobody cares about servicing the debt (at least now) the wallop is very much delayed.

[Southack]

It was delayed. Now it’s here.

[HiTech RedNeck]

How has worries about servicing the debt sucked down prices? That won’t happen until someone responsible takes the helm. Until then, the churning of fiat money from the presses merrily goes on.

[Southack]

You’re backwards. Prices for U.S. bonds have gone through the roof, driving down bond yields.

In turn, bond yields have driven down mortgage rates to record lows.

Deflation.

[B-Chan]

I have some honest questions:

1. Is enough gold avaiable in the world to back the total amount of currency now in circulation?

2. Wouldn’t going to a gold standard produce deflation?

3. What would happen to the $10T national debt under a gold standard?

[HiTech RedNeck]

And in mirror image, stocks are straining like they want to hit the sky again. Net effect: cancellation.

[Southack]

Nope. Stocks are 35% below their 2006 peak.

Deflation.

[HiTech RedNeck]

Again, a local overheating. Bummer has given his Rats lots of dollars and guess where they went. If you didn’t know that stocks took a horrible dive in 2008 (and this was before the Bummer debt) you could be pardoned for considering this anemic.