________________________________________________ -The most under appreciated artist, is the one who did not create. -The most under appreciated painter, is the one who never painted. -The most under appreciated writer, is the one that never wrote. -The most under appreciated, is the one who never did.
Massive inflation should be coming with the reckless spending(and more spending on the way) from the Obama Administration, paired with the monetizing of the debt. We don't have any more money and did not have the money for Obama's "stimulus" aka 'grow big government and elect Democrats in 2010' bill.
Then, while this mess ripples around the world it makes a respectable argument for oil trading to be based on a currency other than the dollar. If that happens, we should see inflation like we've never seen, a real threat to our way of life.
I'd love anyone in the financial industry to chime in on this.
Originally posted by Docbarry: You don't remember 1981. Auto Loan interest was 18%
I bought CD's for my kids with 18% interest.
You could not borrow, get a mortgage or dare use a credit card.
Then things turned around and the banks couldn't give money away fast enough.
that is why the federal reserve must be abolished.
"Cuban seed tobaccos grown in Nicaragua and Cuba. The wrapper would be from Cuba. The binder leaves would be from Nicaragua. For the ligero tobacco in the filler, he would use two types, one from Esteli and the other from Jalapa in Nicaragua. The other filler components, seco and viso, would come from Cuba, the former from Villa Clara, the latter from Pinar del Rio. That Cigar, he says with pride, would score 100 points." -Don Pepin Garcia
the behaviour of the Fed and Treasury is more akin to a 3rd world country at the moment, than that of the world's most powerful nation. it needs to be understood that this talk of a strong dollar policy by various government officials is a joke. nothing could be further from the truth. the LAST thing they want is a strong dollar. it's the only way to fix the imbalances (well, the only politically VIABLE solution domestically).
so. inflate, depreciate the dollar, and spend spend spend.
Posts: 72 | Location: Belize/Mexico | Registered: February 27, 2009
What imbalances are you referring to? Trade? Debt?
well. the US has basically been consuming more than it produces since the early 80's. so, now, instead of being a net creditor nation, it's a net debtor nation (and a big one at that). constant budget deficits and current account deficits, have simply destroyed the US national balance sheet over the decades.
so, for example, if the US gov't has a budget deficit of $1T, and a current account deficit of $700B, the nation needs to borrow that money from savings. since the US has no national savings any longer, it's been borrowing from Japan, German, China, OPEC, all these trillions. for some time, everyone is happy. apparently now, the borrower (US) can't get all the money it needs, and is printing trillions.
you need to borrow about $200B a month right now just to fund the current and budget deficits. that has to stop.... anyway. there are too many problems. US banking system is bankrupt, unemployment is high, so they can't raise rates, ... everything is just a mess. ...
the easiest way out of massive debt, is to inflate massively...
Posts: 72 | Location: Belize/Mexico | Registered: February 27, 2009
Originally posted by Vision: Then, while this mess ripples around the world it makes a respectable argument for oil trading to be based on a currency other than the dollar. If that happens, we should see inflation like we've never seen, a real threat to our way of life.
Saudis drop WTI oil contract By Javier Blas in London
Published: October 28 2009 20:27 | Last updated: October 28 2009 20:27
Saudi Arabia on Wednesday decided to drop the widely used West Texas Intermediate oil contract as the benchmark for pricing its oil, dealing a serious blow to the New York Mercantile Exchange.
The decision by the world’s biggest oil exporter could encourage other producers to abandon the benchmark and threatens the dominance of the world’s most heavily traded oil futures contract. It is the main contract traded on Nymex.
Any person with commonsense knows/understands the terrible mess caused by these outrageous deficits put on the people of America by our Administration.
Those who don't are in denial.
The global economy is so intertwined. This point can not be argued - it just is.
Therefore, as I originally posted, I wonder if Australia's rate hike - albeit small - might be the first domino to fall, causing a wave of corresponding rate hikes across the world and thus the beginning of massive inflation...?
________________________________________________ -The most under appreciated artist, is the one who did not create. -The most under appreciated painter, is the one who never painted. -The most under appreciated writer, is the one that never wrote. -The most under appreciated, is the one who never did.
