Dollar Dropping

[patb]

inflation isn’t the concern, deflation is the concern.

Look first of all economics isn’t a machine science, it’s really the prediction of
human behaviour. It’s applied behavioural pschology. So what matters is
what people will do, not, just what you think.

But say foreigners lose confidence in the dollar, they will demand higher
interest rates. higher interest rates will drive up mortgage rates.
Higher mortgage rates will crush house prices and sales.

now say Obama and Bernanke start printing money like crazy, will
the banks be lending long? hell no. They’ll lend short, or demand
more rate.

[Arraya]

Yup, economics is a belief system like a religion. Which is way 99% of economists are in outter space with their predictions, they forget the mechanics and think it is strictly about perception. During a deflationary depression people lose their job because the money ceases to exist. This has nothing to do with human behavior. It is a mechanical problem. You better believe it will change human behavior if it happens.

The monetary system is a machine which should analyzed scientifically and not through a economic lens. It’s a machine that is broken beyond repair. The main mechanism for economic growth, credit, is contracting due to impaired balance sheets and too much private debt that can’t be paid back. This can not be fixed with more debt which is their only tool. The underlying structural damage of the banking system is still intact. Nothing has been fixed besides accounting changes and digital money for liquidity.

They only solution by the Fed is more public debt to offset the deflationary effects of the credit collapse.

This requires the world to go along with the plan as our economy shrinks and deficits skyrocket. I don’t believe you can keep buying consumption at interest forever. There is a mathematical endpoint that the world wants to avoid.

Loss of confidence in our financial system and currency will bring hyperinflation.

[Arraya]

Yup, economics is a belief system like a religion. Which is way 99% of economists are in outter space with their predictions, they forget the mechanics and think it is strictly about perception. During a deflationary depression people lose their job because the money ceases to exist. This has nothing to do with human behavior. It is a mechanical problem. You better believe it will change human behavior if it happens.

The monetary system is a machine which should analyzed scientifically and not through a economic lens. It’s a machine that is broken beyond repair. The main mechanism for economic growth, credit, is contracting due to impaired balance sheets and too much private debt that can’t be paid back. This can not be fixed with more debt which is their only tool. The underlying structural damage of the banking system is still intact. Nothing has been fixed besides accounting changes and digital money for liquidity.

They only solution by the Fed is more public debt to offset the deflationary effects of the credit collapse.

This requires the world to go along with the plan as our economy shrinks and deficits skyrocket. I don’t believe you can keep buying consumption at interest forever. There is a mathematical endpoint that the world wants to avoid.

Loss of confidence in our financial system and currency will bring hyperinflation.

[Arraya]

Yup, economics is a belief system like a religion. Which is way 99% of economists are in outter space with their predictions, they forget the mechanics and think it is strictly about perception. During a deflationary depression people lose their job because the money ceases to exist. This has nothing to do with human behavior. It is a mechanical problem. You better believe it will change human behavior if it happens.

The monetary system is a machine which should analyzed scientifically and not through a economic lens. It’s a machine that is broken beyond repair. The main mechanism for economic growth, credit, is contracting due to impaired balance sheets and too much private debt that can’t be paid back. This can not be fixed with more debt which is their only tool. The underlying structural damage of the banking system is still intact. Nothing has been fixed besides accounting changes and digital money for liquidity.

They only solution by the Fed is more public debt to offset the deflationary effects of the credit collapse.

This requires the world to go along with the plan as our economy shrinks and deficits skyrocket. I don’t believe you can keep buying consumption at interest forever. There is a mathematical endpoint that the world wants to avoid.

Loss of confidence in our financial system and currency will bring hyperinflation.

[Arraya]

Yup, economics is a belief system like a religion. Which is way 99% of economists are in outter space with their predictions, they forget the mechanics and think it is strictly about perception. During a deflationary depression people lose their job because the money ceases to exist. This has nothing to do with human behavior. It is a mechanical problem. You better believe it will change human behavior if it happens.

The monetary system is a machine which should analyzed scientifically and not through a economic lens. It’s a machine that is broken beyond repair. The main mechanism for economic growth, credit, is contracting due to impaired balance sheets and too much private debt that can’t be paid back. This can not be fixed with more debt which is their only tool. The underlying structural damage of the banking system is still intact. Nothing has been fixed besides accounting changes and digital money for liquidity.

They only solution by the Fed is more public debt to offset the deflationary effects of the credit collapse.

This requires the world to go along with the plan as our economy shrinks and deficits skyrocket. I don’t believe you can keep buying consumption at interest forever. There is a mathematical endpoint that the world wants to avoid.

Loss of confidence in our financial system and currency will bring hyperinflation.

[Arraya]

Yup, economics is a belief system like a religion. Which is way 99% of economists are in outter space with their predictions, they forget the mechanics and think it is strictly about perception. During a deflationary depression people lose their job because the money ceases to exist. This has nothing to do with human behavior. It is a mechanical problem. You better believe it will change human behavior if it happens.

The monetary system is a machine which should analyzed scientifically and not through a economic lens. It’s a machine that is broken beyond repair. The main mechanism for economic growth, credit, is contracting due to impaired balance sheets and too much private debt that can’t be paid back. This can not be fixed with more debt which is their only tool. The underlying structural damage of the banking system is still intact. Nothing has been fixed besides accounting changes and digital money for liquidity.

They only solution by the Fed is more public debt to offset the deflationary effects of the credit collapse.

This requires the world to go along with the plan as our economy shrinks and deficits skyrocket. I don’t believe you can keep buying consumption at interest forever. There is a mathematical endpoint that the world wants to avoid.

Loss of confidence in our financial system and currency will bring hyperinflation.

[Arraya]

“With the U.S. borrowing about $30 billion a week, some economists say the Treasury will need an increase of as much as $1.5 trillion if it wants to avoid another request before the 2010 midterm elections. The U.S. could default on its debt if Congress doesn’t raise the debt ceiling, but it is a remote scenario.”
http://online.wsj.com/article/SB125270970074004941.html?mod=googlenews_wsj

[Arraya]

“With the U.S. borrowing about $30 billion a week, some economists say the Treasury will need an increase of as much as $1.5 trillion if it wants to avoid another request before the 2010 midterm elections. The U.S. could default on its debt if Congress doesn’t raise the debt ceiling, but it is a remote scenario.”
http://online.wsj.com/article/SB125270970074004941.html?mod=googlenews_wsj

[Arraya]

“With the U.S. borrowing about $30 billion a week, some economists say the Treasury will need an increase of as much as $1.5 trillion if it wants to avoid another request before the 2010 midterm elections. The U.S. could default on its debt if Congress doesn’t raise the debt ceiling, but it is a remote scenario.”
http://online.wsj.com/article/SB125270970074004941.html?mod=googlenews_wsj

[Arraya]

“With the U.S. borrowing about $30 billion a week, some economists say the Treasury will need an increase of as much as $1.5 trillion if it wants to avoid another request before the 2010 midterm elections. The U.S. could default on its debt if Congress doesn’t raise the debt ceiling, but it is a remote scenario.”
http://online.wsj.com/article/SB125270970074004941.html?mod=googlenews_wsj

[Arraya]

“With the U.S. borrowing about $30 billion a week, some economists say the Treasury will need an increase of as much as $1.5 trillion if it wants to avoid another request before the 2010 midterm elections. The U.S. could default on its debt if Congress doesn’t raise the debt ceiling, but it is a remote scenario.”
http://online.wsj.com/article/SB125270970074004941.html?mod=googlenews_wsj

[jimmyle]

If the dollar falling is true. Is buying foreign mutual fund a good move?

For example, if I buy a mutual fund in Euro. And that mutual fund price remains the same but the Euro gains 10% on the dollar. Does it mean that I gained 10%?

Thanks for your advice.

[jimmyle]

If the dollar falling is true. Is buying foreign mutual fund a good move?

For example, if I buy a mutual fund in Euro. And that mutual fund price remains the same but the Euro gains 10% on the dollar. Does it mean that I gained 10%?

Thanks for your advice.

[jimmyle]

If the dollar falling is true. Is buying foreign mutual fund a good move?

For example, if I buy a mutual fund in Euro. And that mutual fund price remains the same but the Euro gains 10% on the dollar. Does it mean that I gained 10%?

Thanks for your advice.

[jimmyle]

If the dollar falling is true. Is buying foreign mutual fund a good move?

For example, if I buy a mutual fund in Euro. And that mutual fund price remains the same but the Euro gains 10% on the dollar. Does it mean that I gained 10%?

Thanks for your advice.

[Author]

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