I have been struggling with the direction of the dollar after the certain collapse of the US stock markets. This video is one in which Peter Schiff predicts, in simplistic terms , that the party in the US is over and Asia will begin to consume their own production and the US will be forced into a much lower standard of living with the collapse of the dollar.
zev wrote:"Zimbabwe and Weimar: The government printed enormous amounts of money, deflating the currency, and there was no credit bubble to counterbalance it. You can think of the $700 billion bailout as being similar to "printing money," but it's tiny compared to the tens or hundreds of trillions of dollars in the real estate bubble, credit default swaps, and other credit derivatives. It's the collapse of the credit bubble that offsets all other factors that might otherwise be inflationary."
Imaging telling the US gov't that - it's like telling a kid, 'I bet you can't eat all that candy'. Any politician who knows they can print all the money they want without worrying about inflation would proceed to print all the money they want. What's stopping them?
And what about the opposite - that to print all the money you want, you just have to initiate a credit bubble, then let it deflate; why wouldn't all those places dealing with inflation just create a credit bubble and allow it to deflate?
richard5za wrote:On oil I agree with Rafaelloello. Oil was very over sold and my charts indicate a bounce back. Currently I am looking at Brent Crude reaching $ 118. Lets see what happens
If the world war completely destroys the US infrastructure, then the
dollar may indeed become worthless, but that scenario seems unlikely
TheCoinCollector wrote:> Just a thought, I completely agree with the deflation argument and
> I know the credit bubble is huge and that a few trillion won't
> cover it but with all these government deposit guarantees and
> bailouts? Won't that just lead to inflation eventually, globally
> debasing all currencies that jump on the band wagon? I guess the
> fear could be that is they try to bail their way out of this
> crisis, then america and the rest of the would would be f___ed,
> after all, most nations if not all are fiat currencies allowing
> the central banks to print at the nations own peril.
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