Prices

[jpinpb]

kewp – that is a good point. The ATM housing money has been spent. That was all borrowed money. This new injection of money is going to cover the already borrowed money. Small example, the stimulus package. How many ran out and injected it into new purchase. I’d go out on a limb and say many just paid bills, credit cards, car payments, etc. Some Piggs probably invested it (hopefully not in stocks like me) or just saved it (some of it).

I don’t think the stimulus package did one thing towards jump-starting the economy, even if a few actually bought something w/it.

I don’t think the 700 billion is anywhere near pulling us out of this hole of debt. We have to get out of the hole of debt before we can think about stimulating the economy.

[peterb]

Kewp- I think you’ve hit on exactly what’s happening out there. Credit was a gigantic part of the money supply….see charts of global credit growth for the last 8 years.
That’s all but destroyed now. Compare this recent destruction of global credit to what’s actually in bank account deposits and in wages. It is tiny compared to the credit destruction. Keep in mind, there’s little money left in home equity, stock market equity has been devistated and wages are not rising (unemployment rising).
How can the US$ not rise in this equation?! There’s really not that much of it out there. Go try to take your money out of bank, see how they cry. Cause they aint got any more they can get.

“Cash is king” and “cash in a crash” Is really true. Look around, it’s happening real-time. The US$ is buying more of almost everything by the day!!

[peterb]

Kewp- I think you’ve hit on exactly what’s happening out there. Credit was a gigantic part of the money supply….see charts of global credit growth for the last 8 years.
That’s all but destroyed now. Compare this recent destruction of global credit to what’s actually in bank account deposits and in wages. It is tiny compared to the credit destruction. Keep in mind, there’s little money left in home equity, stock market equity has been devistated and wages are not rising (unemployment rising).
How can the US$ not rise in this equation?! There’s really not that much of it out there. Go try to take your money out of bank, see how they cry. Cause they aint got any more they can get.

“Cash is king” and “cash in a crash” Is really true. Look around, it’s happening real-time. The US$ is buying more of almost everything by the day!!

[peterb]

Kewp- I think you’ve hit on exactly what’s happening out there. Credit was a gigantic part of the money supply….see charts of global credit growth for the last 8 years.
That’s all but destroyed now. Compare this recent destruction of global credit to what’s actually in bank account deposits and in wages. It is tiny compared to the credit destruction. Keep in mind, there’s little money left in home equity, stock market equity has been devistated and wages are not rising (unemployment rising).
How can the US$ not rise in this equation?! There’s really not that much of it out there. Go try to take your money out of bank, see how they cry. Cause they aint got any more they can get.

“Cash is king” and “cash in a crash” Is really true. Look around, it’s happening real-time. The US$ is buying more of almost everything by the day!!

[peterb]

Kewp- I think you’ve hit on exactly what’s happening out there. Credit was a gigantic part of the money supply….see charts of global credit growth for the last 8 years.
That’s all but destroyed now. Compare this recent destruction of global credit to what’s actually in bank account deposits and in wages. It is tiny compared to the credit destruction. Keep in mind, there’s little money left in home equity, stock market equity has been devistated and wages are not rising (unemployment rising).
How can the US$ not rise in this equation?! There’s really not that much of it out there. Go try to take your money out of bank, see how they cry. Cause they aint got any more they can get.

“Cash is king” and “cash in a crash” Is really true. Look around, it’s happening real-time. The US$ is buying more of almost everything by the day!!

[peterb]

Kewp- I think you’ve hit on exactly what’s happening out there. Credit was a gigantic part of the money supply….see charts of global credit growth for the last 8 years.
That’s all but destroyed now. Compare this recent destruction of global credit to what’s actually in bank account deposits and in wages. It is tiny compared to the credit destruction. Keep in mind, there’s little money left in home equity, stock market equity has been devistated and wages are not rising (unemployment rising).
How can the US$ not rise in this equation?! There’s really not that much of it out there. Go try to take your money out of bank, see how they cry. Cause they aint got any more they can get.

“Cash is king” and “cash in a crash” Is really true. Look around, it’s happening real-time. The US$ is buying more of almost everything by the day!!

[XBoxBoy]

[quote=peterb]The US$ is buying more of almost everything by the day!![/quote]

But what happens when this crisis settles down? (and it will settle down at some point) With the market crashing, you would expect treasuries to be skyrocketing. But they aren’t. Matter of fact, yields on 10yrs have been rising. Might be because people need to liquidate them so they pay their Lehman CDS’s, but might it be that there is an enormous bubble in treasuries right now?

If the people arguing that treasuries are the mother of all bubbles out there are right, what happens when that pops? The obvious answer would be that interest rates go through the roof. And then we get a full blown dollar crisis. This could put a crimp in all the bailout plans.

Of course if you’re buying an american house with american dollars all this might be irrelevant. Then again, it might not. What do I know.

XBoxBoy

[XBoxBoy]

[quote=peterb]The US$ is buying more of almost everything by the day!![/quote]

But what happens when this crisis settles down? (and it will settle down at some point) With the market crashing, you would expect treasuries to be skyrocketing. But they aren’t. Matter of fact, yields on 10yrs have been rising. Might be because people need to liquidate them so they pay their Lehman CDS’s, but might it be that there is an enormous bubble in treasuries right now?

If the people arguing that treasuries are the mother of all bubbles out there are right, what happens when that pops? The obvious answer would be that interest rates go through the roof. And then we get a full blown dollar crisis. This could put a crimp in all the bailout plans.

Of course if you’re buying an american house with american dollars all this might be irrelevant. Then again, it might not. What do I know.

XBoxBoy

[XBoxBoy]

[quote=peterb]The US$ is buying more of almost everything by the day!![/quote]

But what happens when this crisis settles down? (and it will settle down at some point) With the market crashing, you would expect treasuries to be skyrocketing. But they aren’t. Matter of fact, yields on 10yrs have been rising. Might be because people need to liquidate them so they pay their Lehman CDS’s, but might it be that there is an enormous bubble in treasuries right now?

If the people arguing that treasuries are the mother of all bubbles out there are right, what happens when that pops? The obvious answer would be that interest rates go through the roof. And then we get a full blown dollar crisis. This could put a crimp in all the bailout plans.

Of course if you’re buying an american house with american dollars all this might be irrelevant. Then again, it might not. What do I know.

XBoxBoy

[XBoxBoy]

[quote=peterb]The US$ is buying more of almost everything by the day!![/quote]

But what happens when this crisis settles down? (and it will settle down at some point) With the market crashing, you would expect treasuries to be skyrocketing. But they aren’t. Matter of fact, yields on 10yrs have been rising. Might be because people need to liquidate them so they pay their Lehman CDS’s, but might it be that there is an enormous bubble in treasuries right now?

If the people arguing that treasuries are the mother of all bubbles out there are right, what happens when that pops? The obvious answer would be that interest rates go through the roof. And then we get a full blown dollar crisis. This could put a crimp in all the bailout plans.

Of course if you’re buying an american house with american dollars all this might be irrelevant. Then again, it might not. What do I know.

XBoxBoy

[XBoxBoy]

[quote=peterb]The US$ is buying more of almost everything by the day!![/quote]

But what happens when this crisis settles down? (and it will settle down at some point) With the market crashing, you would expect treasuries to be skyrocketing. But they aren’t. Matter of fact, yields on 10yrs have been rising. Might be because people need to liquidate them so they pay their Lehman CDS’s, but might it be that there is an enormous bubble in treasuries right now?

If the people arguing that treasuries are the mother of all bubbles out there are right, what happens when that pops? The obvious answer would be that interest rates go through the roof. And then we get a full blown dollar crisis. This could put a crimp in all the bailout plans.

Of course if you’re buying an american house with american dollars all this might be irrelevant. Then again, it might not. What do I know.

XBoxBoy

[jpinpb]

If there’s a worldwide crisis and the dollar is worthless, then what difference would it make to have cash on hand? I’ve heard/read to buy gold. But in a real crisis, you can’t eat money or gold. Just stock up on food and water, right?

I can’t imagine it will get that bad, but I made a trip to Costco today, JIC, and got a few extra things.

[jpinpb]

If there’s a worldwide crisis and the dollar is worthless, then what difference would it make to have cash on hand? I’ve heard/read to buy gold. But in a real crisis, you can’t eat money or gold. Just stock up on food and water, right?

I can’t imagine it will get that bad, but I made a trip to Costco today, JIC, and got a few extra things.

[jpinpb]

If there’s a worldwide crisis and the dollar is worthless, then what difference would it make to have cash on hand? I’ve heard/read to buy gold. But in a real crisis, you can’t eat money or gold. Just stock up on food and water, right?

I can’t imagine it will get that bad, but I made a trip to Costco today, JIC, and got a few extra things.

[jpinpb]

If there’s a worldwide crisis and the dollar is worthless, then what difference would it make to have cash on hand? I’ve heard/read to buy gold. But in a real crisis, you can’t eat money or gold. Just stock up on food and water, right?

I can’t imagine it will get that bad, but I made a trip to Costco today, JIC, and got a few extra things.

[Author]

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