[peterb]

The world is headed in to a global recession and it turns out other currency are fairly flawed as well as the US$. At least that’s the way the market is looking at it now. So the US$ is gaining against the other major currencies. But gold is holding pretty steady. Kinda like a race to the bottom. But historically speaking, after a large credit bust the senior currency usually is valued higher than other currencies.

[peterb]

The world is headed in to a global recession and it turns out other currency are fairly flawed as well as the US$. At least that’s the way the market is looking at it now. So the US$ is gaining against the other major currencies. But gold is holding pretty steady. Kinda like a race to the bottom. But historically speaking, after a large credit bust the senior currency usually is valued higher than other currencies.

[peterb]

The world is headed in to a global recession and it turns out other currency are fairly flawed as well as the US$. At least that’s the way the market is looking at it now. So the US$ is gaining against the other major currencies. But gold is holding pretty steady. Kinda like a race to the bottom. But historically speaking, after a large credit bust the senior currency usually is valued higher than other currencies.

[peterb]

The world is headed in to a global recession and it turns out other currency are fairly flawed as well as the US$. At least that’s the way the market is looking at it now. So the US$ is gaining against the other major currencies. But gold is holding pretty steady. Kinda like a race to the bottom. But historically speaking, after a large credit bust the senior currency usually is valued higher than other currencies.

[peterb]

The world is headed in to a global recession and it turns out other currency are fairly flawed as well as the US$. At least that’s the way the market is looking at it now. So the US$ is gaining against the other major currencies. But gold is holding pretty steady. Kinda like a race to the bottom. But historically speaking, after a large credit bust the senior currency usually is valued higher than other currencies.

[peterb]

bubba99, I think the kind of inflation they’re thinking of is the kind that stimulates growth. Otherwise it’s really devaluing the UD$ even more and we still get a recession/depression.

I think that’s essentially what the Japanese did in the 1990’s. Bury the problem. But I think it is a recipe for stagflation at best. And it’s probably what we’ll get except that we’re not nearly the exporter that Japan is. So it’ll be way worse for us.

The real problem, as I see it, is that credit has been destroyed. This forces everyone to consume at the level of their real wages. And real wages have not increased in at least 10 years. I think this may be the major part of Peter Schiff’s thesis that we are headed back to housing prices of the late 1990’s. Because that’s when the mortgage lending practices were realistic and sustainable.

I think that this time, the market cannot be denied.

[peterb]

bubba99, I think the kind of inflation they’re thinking of is the kind that stimulates growth. Otherwise it’s really devaluing the UD$ even more and we still get a recession/depression.

I think that’s essentially what the Japanese did in the 1990’s. Bury the problem. But I think it is a recipe for stagflation at best. And it’s probably what we’ll get except that we’re not nearly the exporter that Japan is. So it’ll be way worse for us.

The real problem, as I see it, is that credit has been destroyed. This forces everyone to consume at the level of their real wages. And real wages have not increased in at least 10 years. I think this may be the major part of Peter Schiff’s thesis that we are headed back to housing prices of the late 1990’s. Because that’s when the mortgage lending practices were realistic and sustainable.

I think that this time, the market cannot be denied.

[peterb]

bubba99, I think the kind of inflation they’re thinking of is the kind that stimulates growth. Otherwise it’s really devaluing the UD$ even more and we still get a recession/depression.

I think that’s essentially what the Japanese did in the 1990’s. Bury the problem. But I think it is a recipe for stagflation at best. And it’s probably what we’ll get except that we’re not nearly the exporter that Japan is. So it’ll be way worse for us.

The real problem, as I see it, is that credit has been destroyed. This forces everyone to consume at the level of their real wages. And real wages have not increased in at least 10 years. I think this may be the major part of Peter Schiff’s thesis that we are headed back to housing prices of the late 1990’s. Because that’s when the mortgage lending practices were realistic and sustainable.

I think that this time, the market cannot be denied.

[peterb]

bubba99, I think the kind of inflation they’re thinking of is the kind that stimulates growth. Otherwise it’s really devaluing the UD$ even more and we still get a recession/depression.

I think that’s essentially what the Japanese did in the 1990’s. Bury the problem. But I think it is a recipe for stagflation at best. And it’s probably what we’ll get except that we’re not nearly the exporter that Japan is. So it’ll be way worse for us.

The real problem, as I see it, is that credit has been destroyed. This forces everyone to consume at the level of their real wages. And real wages have not increased in at least 10 years. I think this may be the major part of Peter Schiff’s thesis that we are headed back to housing prices of the late 1990’s. Because that’s when the mortgage lending practices were realistic and sustainable.

I think that this time, the market cannot be denied.

[peterb]

bubba99, I think the kind of inflation they’re thinking of is the kind that stimulates growth. Otherwise it’s really devaluing the UD$ even more and we still get a recession/depression.

I think that’s essentially what the Japanese did in the 1990’s. Bury the problem. But I think it is a recipe for stagflation at best. And it’s probably what we’ll get except that we’re not nearly the exporter that Japan is. So it’ll be way worse for us.

The real problem, as I see it, is that credit has been destroyed. This forces everyone to consume at the level of their real wages. And real wages have not increased in at least 10 years. I think this may be the major part of Peter Schiff’s thesis that we are headed back to housing prices of the late 1990’s. Because that’s when the mortgage lending practices were realistic and sustainable.

I think that this time, the market cannot be denied.

[peterb]

The US govt is in no uncertain terms, a debtor organization. It needs new money on a constant basis for survival. Thus, evey action it takes must consider how it’s lenders will percieve its future stability and worthiness. You can bet that the Asian lenders, that’s most of who buys US debt, will be kept whole on anything that’s done by the govt. If the Asian countries decided that the US is no longer worthy, we’re in huge trouble. They’re basically divesting now anyway.

I have to believe that they will convert more of their debt paper in to dollars and then buy US natural resource companies. They want and need this stuff for their future anyway.They have to spend US$ to avoid increasing value of their own currency. And now US debt is getting to a level where servicing it will come into question and that’s the first critical step to insovency.

[peterb]

The US govt is in no uncertain terms, a debtor organization. It needs new money on a constant basis for survival. Thus, evey action it takes must consider how it’s lenders will percieve its future stability and worthiness. You can bet that the Asian lenders, that’s most of who buys US debt, will be kept whole on anything that’s done by the govt. If the Asian countries decided that the US is no longer worthy, we’re in huge trouble. They’re basically divesting now anyway.

I have to believe that they will convert more of their debt paper in to dollars and then buy US natural resource companies. They want and need this stuff for their future anyway.They have to spend US$ to avoid increasing value of their own currency. And now US debt is getting to a level where servicing it will come into question and that’s the first critical step to insovency.

[peterb]

The US govt is in no uncertain terms, a debtor organization. It needs new money on a constant basis for survival. Thus, evey action it takes must consider how it’s lenders will percieve its future stability and worthiness. You can bet that the Asian lenders, that’s most of who buys US debt, will be kept whole on anything that’s done by the govt. If the Asian countries decided that the US is no longer worthy, we’re in huge trouble. They’re basically divesting now anyway.

I have to believe that they will convert more of their debt paper in to dollars and then buy US natural resource companies. They want and need this stuff for their future anyway.They have to spend US$ to avoid increasing value of their own currency. And now US debt is getting to a level where servicing it will come into question and that’s the first critical step to insovency.

[peterb]

The US govt is in no uncertain terms, a debtor organization. It needs new money on a constant basis for survival. Thus, evey action it takes must consider how it’s lenders will percieve its future stability and worthiness. You can bet that the Asian lenders, that’s most of who buys US debt, will be kept whole on anything that’s done by the govt. If the Asian countries decided that the US is no longer worthy, we’re in huge trouble. They’re basically divesting now anyway.

I have to believe that they will convert more of their debt paper in to dollars and then buy US natural resource companies. They want and need this stuff for their future anyway.They have to spend US$ to avoid increasing value of their own currency. And now US debt is getting to a level where servicing it will come into question and that’s the first critical step to insovency.

[peterb]

The US govt is in no uncertain terms, a debtor organization. It needs new money on a constant basis for survival. Thus, evey action it takes must consider how it’s lenders will percieve its future stability and worthiness. You can bet that the Asian lenders, that’s most of who buys US debt, will be kept whole on anything that’s done by the govt. If the Asian countries decided that the US is no longer worthy, we’re in huge trouble. They’re basically divesting now anyway.

I have to believe that they will convert more of their debt paper in to dollars and then buy US natural resource companies. They want and need this stuff for their future anyway.They have to spend US$ to avoid increasing value of their own currency. And now US debt is getting to a level where servicing it will come into question and that’s the first critical step to insovency.

[Author]

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