Overdose: The Next Financial Crisis

[Nor-LA-SD-guy]

I think that’s about right,

Being that unlike Greece, the U.S.A. has control over its currency,

Personally I think the fed can print as much money and buy treasuries to keep interest rates low for however long it takes.

Eventually the economy will find its footing and yes after every bad recession they always say the same thing (The U.S.A. best times are behind it), I remember being in a Swiss airport paying 12 dollars for a coffee and donut in 1995 and being scolded by the waitress that the U.S.A’s time was behind it and that we had to learn to accept our place (well it was something like that).

[investor]

[quote=stockstradr]I bet all of you that one day, in retrospect, the dollar (and of course, dollar-denominated Treasuries) will be seen as the Bigger Bubble that came after the housing bubble.

..because the dollar and dollar-denominated Treasuries ARE already in a bubble now.[/quote]
stockstradr. I agree. With all of the money being printed now, http://en.wikipedia.org/wiki/Money_supply inflation is coming. We have to get beyond the current stagnation but when people start to buy again, inflation is here. The book aftershock makes the point that 2 more bubbles are going to pop. first the dollar bubble, built up since 1971 when we went off the gold standard and there was no limit to how much money the fed could print. Once world investors loose faith in the dollar as an investment, which they are going towards now, prices of dollar denominated assets will fall, the fed will print more money to cover the losses, inflation will get worse and we will not be able to pay the interest on the national debt, which will be over 100% of the GDB by that point. Maybe much over. A default on the national debt is then possible or a conversion to another currency, debasing the dollar debt as described in roubini’s new book. When will all of this happen? aftershock estimates that the dollar bubble in roughly 2014, the national debt bubble sometime after that. People don’t want to face the possibility of the US defaulting on the national debt but at some point, the bedt becomes too high to pay off and no-one will buy more of them. Any thoughts anyone else?

[investor]

[quote=stockstradr]I bet all of you that one day, in retrospect, the dollar (and of course, dollar-denominated Treasuries) will be seen as the Bigger Bubble that came after the housing bubble.

..because the dollar and dollar-denominated Treasuries ARE already in a bubble now.[/quote]
stockstradr. I agree. With all of the money being printed now, http://en.wikipedia.org/wiki/Money_supply inflation is coming. We have to get beyond the current stagnation but when people start to buy again, inflation is here. The book aftershock makes the point that 2 more bubbles are going to pop. first the dollar bubble, built up since 1971 when we went off the gold standard and there was no limit to how much money the fed could print. Once world investors loose faith in the dollar as an investment, which they are going towards now, prices of dollar denominated assets will fall, the fed will print more money to cover the losses, inflation will get worse and we will not be able to pay the interest on the national debt, which will be over 100% of the GDB by that point. Maybe much over. A default on the national debt is then possible or a conversion to another currency, debasing the dollar debt as described in roubini’s new book. When will all of this happen? aftershock estimates that the dollar bubble in roughly 2014, the national debt bubble sometime after that. People don’t want to face the possibility of the US defaulting on the national debt but at some point, the bedt becomes too high to pay off and no-one will buy more of them. Any thoughts anyone else?

[investor]

[quote=stockstradr]I bet all of you that one day, in retrospect, the dollar (and of course, dollar-denominated Treasuries) will be seen as the Bigger Bubble that came after the housing bubble.

..because the dollar and dollar-denominated Treasuries ARE already in a bubble now.[/quote]
stockstradr. I agree. With all of the money being printed now, http://en.wikipedia.org/wiki/Money_supply inflation is coming. We have to get beyond the current stagnation but when people start to buy again, inflation is here. The book aftershock makes the point that 2 more bubbles are going to pop. first the dollar bubble, built up since 1971 when we went off the gold standard and there was no limit to how much money the fed could print. Once world investors loose faith in the dollar as an investment, which they are going towards now, prices of dollar denominated assets will fall, the fed will print more money to cover the losses, inflation will get worse and we will not be able to pay the interest on the national debt, which will be over 100% of the GDB by that point. Maybe much over. A default on the national debt is then possible or a conversion to another currency, debasing the dollar debt as described in roubini’s new book. When will all of this happen? aftershock estimates that the dollar bubble in roughly 2014, the national debt bubble sometime after that. People don’t want to face the possibility of the US defaulting on the national debt but at some point, the bedt becomes too high to pay off and no-one will buy more of them. Any thoughts anyone else?

[investor]

[quote=stockstradr]I bet all of you that one day, in retrospect, the dollar (and of course, dollar-denominated Treasuries) will be seen as the Bigger Bubble that came after the housing bubble.

..because the dollar and dollar-denominated Treasuries ARE already in a bubble now.[/quote]
stockstradr. I agree. With all of the money being printed now, http://en.wikipedia.org/wiki/Money_supply inflation is coming. We have to get beyond the current stagnation but when people start to buy again, inflation is here. The book aftershock makes the point that 2 more bubbles are going to pop. first the dollar bubble, built up since 1971 when we went off the gold standard and there was no limit to how much money the fed could print. Once world investors loose faith in the dollar as an investment, which they are going towards now, prices of dollar denominated assets will fall, the fed will print more money to cover the losses, inflation will get worse and we will not be able to pay the interest on the national debt, which will be over 100% of the GDB by that point. Maybe much over. A default on the national debt is then possible or a conversion to another currency, debasing the dollar debt as described in roubini’s new book. When will all of this happen? aftershock estimates that the dollar bubble in roughly 2014, the national debt bubble sometime after that. People don’t want to face the possibility of the US defaulting on the national debt but at some point, the bedt becomes too high to pay off and no-one will buy more of them. Any thoughts anyone else?

[investor]

[quote=stockstradr]I bet all of you that one day, in retrospect, the dollar (and of course, dollar-denominated Treasuries) will be seen as the Bigger Bubble that came after the housing bubble.

..because the dollar and dollar-denominated Treasuries ARE already in a bubble now.[/quote]
stockstradr. I agree. With all of the money being printed now, http://en.wikipedia.org/wiki/Money_supply inflation is coming. We have to get beyond the current stagnation but when people start to buy again, inflation is here. The book aftershock makes the point that 2 more bubbles are going to pop. first the dollar bubble, built up since 1971 when we went off the gold standard and there was no limit to how much money the fed could print. Once world investors loose faith in the dollar as an investment, which they are going towards now, prices of dollar denominated assets will fall, the fed will print more money to cover the losses, inflation will get worse and we will not be able to pay the interest on the national debt, which will be over 100% of the GDB by that point. Maybe much over. A default on the national debt is then possible or a conversion to another currency, debasing the dollar debt as described in roubini’s new book. When will all of this happen? aftershock estimates that the dollar bubble in roughly 2014, the national debt bubble sometime after that. People don’t want to face the possibility of the US defaulting on the national debt but at some point, the bedt becomes too high to pay off and no-one will buy more of them. Any thoughts anyone else?

[Arraya]

Inflation coming? We’re looking at a systemic malfunction of the whole global monetary system, breakup of the international debt financing model after a severe bout of deflation. The US is just one of many on long list of countries with unpayable debt.

[Arraya]

Inflation coming? We’re looking at a systemic malfunction of the whole global monetary system, breakup of the international debt financing model after a severe bout of deflation. The US is just one of many on long list of countries with unpayable debt.

[Arraya]

Inflation coming? We’re looking at a systemic malfunction of the whole global monetary system, breakup of the international debt financing model after a severe bout of deflation. The US is just one of many on long list of countries with unpayable debt.

[Arraya]

Inflation coming? We’re looking at a systemic malfunction of the whole global monetary system, breakup of the international debt financing model after a severe bout of deflation. The US is just one of many on long list of countries with unpayable debt.

[Arraya]

Inflation coming? We’re looking at a systemic malfunction of the whole global monetary system, breakup of the international debt financing model after a severe bout of deflation. The US is just one of many on long list of countries with unpayable debt.

[investor]

[quote=Arraya]Inflation coming? We’re looking at a systemic malfunction of the whole global monetary system, breakup of the international debt financing model after a severe bout of deflation. The US is just one of many on long list of countries with unpayable debt.[/quote]
I added in another post that once the current stagnation clears, we are looking at inflation. If you look at the money supply as pointed out in the wikipedia link, there is no way you can’t have inflation. But, the current stagnation has to clear first. I give it about 2-4 years to have people begin to spend money again. And, yes I agre, tha list of countries with excessive sovereighn debt is long and the amount is soon going to be not recoverable.

[investor]

[quote=Arraya]Inflation coming? We’re looking at a systemic malfunction of the whole global monetary system, breakup of the international debt financing model after a severe bout of deflation. The US is just one of many on long list of countries with unpayable debt.[/quote]
I added in another post that once the current stagnation clears, we are looking at inflation. If you look at the money supply as pointed out in the wikipedia link, there is no way you can’t have inflation. But, the current stagnation has to clear first. I give it about 2-4 years to have people begin to spend money again. And, yes I agre, tha list of countries with excessive sovereighn debt is long and the amount is soon going to be not recoverable.

[investor]

[quote=Arraya]Inflation coming? We’re looking at a systemic malfunction of the whole global monetary system, breakup of the international debt financing model after a severe bout of deflation. The US is just one of many on long list of countries with unpayable debt.[/quote]
I added in another post that once the current stagnation clears, we are looking at inflation. If you look at the money supply as pointed out in the wikipedia link, there is no way you can’t have inflation. But, the current stagnation has to clear first. I give it about 2-4 years to have people begin to spend money again. And, yes I agre, tha list of countries with excessive sovereighn debt is long and the amount is soon going to be not recoverable.

[investor]

[quote=Arraya]Inflation coming? We’re looking at a systemic malfunction of the whole global monetary system, breakup of the international debt financing model after a severe bout of deflation. The US is just one of many on long list of countries with unpayable debt.[/quote]
I added in another post that once the current stagnation clears, we are looking at inflation. If you look at the money supply as pointed out in the wikipedia link, there is no way you can’t have inflation. But, the current stagnation has to clear first. I give it about 2-4 years to have people begin to spend money again. And, yes I agre, tha list of countries with excessive sovereighn debt is long and the amount is soon going to be not recoverable.

[Author]

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