Underdose, I think those are valid points you bring up. I think history is worth analyzing here as this is not the first bursting of a huge credit bubble on record.
Agreed, the govt is trying like crazy to get inflation going again. And other countries are openly deciding to divest of US dollars. I think we can both agree that govt intervention is taking off at a global level. See Financial Times for various articles.
I guess the question is, will they be successful? Perhaps stagflation is the outcome. If the money they’ve created does not increase the velocity. Or rather, does not get put to uses that grow the economy or increase spending…does it still devalue the US$? Probably, the answer is “yes”. But if other currencies are really no better than the US$ and global demand is being destroyed through a global recession, will this translate into increased prices?

This is the reason I took a position in gold. Most all currencies are starting to behave badly, so perhaps it’s a race to the bottom, which I suspect it is. The world is treating the US$ like a safe haven, but that probably wont last very long. What’s left? Looks like the yellow metal has some kind of future here. Both ElliottWave and candle stick analysis are bullish gold as well. History has gold doing well after a huge credit bubble bursts. But it also favors the senior currency. But can a trillion extra US$ floating around really be a good indicator of it’s soundness?!

Anyone have any other ideas? Contrary opinions are always welcome. As Henry Ford once said,”If I have two executives that always agree with each other, I dont need one of them.”