Posted by alphahorn on 26th of May 2009 at 11:19 am
yes, but they will direct confidence away from the market to the
$ because they need to finance their massive debt. thus, the market
will tank and the $ will rebound
Posted by elboroom on 26th of May 2009 at 02:32 pm
Matt,
You misunderstand inflation. A weaker dollar is FAVORABLE to
debtors because they borrowed stronger money and get to pay it back
in weaker money. That's why people who have been responsible and
saved money while keeping their debts down are screwed, now. All
that money they saved is worth a lot less. It's also true for
lenders. They will be repaid in weakened money
This is true for individuals and nations. China and other
countries we owe understand this. That's why they were asking for
another currency to replace the dollar prior to the last G20
meeting. It is a disadvantage to America's lenders to have a weak
dollar. As the world's biggest debtor, a weak dollar is great for
the United States.
Posted by hornsant on 26th of May 2009 at 03:00 pm
I think that you have a point there and the chinese are quite
right at asking for a new currency... that is the diference this
time arround, the chinese are back in the trade after some two
hundred years and that changes the scenario from prior recesions
when the USA always inflated their way out and every one else had
to agree. I think that this time it is not going to be that
simple, I personaly belive that it would be far better to have a
currency other than the dollar for global trade. And the whole
world away from the USA understands it like that, the reasons
are on the table for all to see. The USA spends as it
finds someone to pay for the bill it is getting a bit to
predictable.
yeah well that's very easy for you to say that since you dont'
live in the US. If and really the question is when the US
loses it's reserve world currency status, it will cause a lot of
pain for ordinary Americans because of what it will do to the
country potentially. So again while you have points for
longer term world stuff, for us living here in the US, it's hard
for us to say, yeah let's do it, we want the pain
Posted by hornsant on 26th of May 2009 at 03:28 pm
You are absolutely right Matt the wrong doings of the rulers are
always badly felt by those who are ruled... it is perfectly unfair
but you have to understand that the rest of the global trading
comunity it sick of getting the dollar boot right where it hurts
every time.
"...
Those who owed money encouraged their government’s
expansionary monetary policies, knowing the resulting inflation
would effectively cancel their debt. In fact, it was the Reich
itself who had the most to gain from inflation, for it was the
biggest debtor of them all."
spx 905
Posted by ucbarryk on 26th of May 2009 at 10:44 am
i thought that would hold it .. now , i m thinking 928 or so and reverse..or..new bull market to 30,000
yeah to 30000 lol
Posted by matt on 26th of May 2009 at 10:54 am
yeah to 30000 lol
hey if the dollar is
Posted by dylan398 on 26th of May 2009 at 11:10 am
hey if the dollar is wothless DOW 30K...is not out of the question...or whatever currency the new Noth American Union chooses...
yes, but they will direct
Posted by alphahorn on 26th of May 2009 at 11:19 am
yes, but they will direct confidence away from the market to the $ because they need to finance their massive debt. thus, the market will tank and the $ will rebound
Inflation, dollar, and confidence
Posted by elboroom on 26th of May 2009 at 02:32 pm
Matt,
You misunderstand inflation. A weaker dollar is FAVORABLE to debtors because they borrowed stronger money and get to pay it back in weaker money. That's why people who have been responsible and saved money while keeping their debts down are screwed, now. All that money they saved is worth a lot less. It's also true for lenders. They will be repaid in weakened money
This is true for individuals and nations. China and other countries we owe understand this. That's why they were asking for another currency to replace the dollar prior to the last G20 meeting. It is a disadvantage to America's lenders to have a weak dollar. As the world's biggest debtor, a weak dollar is great for the United States.
I think that you have
Posted by hornsant on 26th of May 2009 at 03:00 pm
I think that you have a point there and the chinese are quite right at asking for a new currency... that is the diference this time arround, the chinese are back in the trade after some two hundred years and that changes the scenario from prior recesions when the USA always inflated their way out and every one else had to agree. I think that this time it is not going to be that simple, I personaly belive that it would be far better to have a currency other than the dollar for global trade. And the whole world away from the USA understands it like that, the reasons are on the table for all to see. The USA spends as it finds someone to pay for the bill it is getting a bit to predictable.
yeah well that's very easy
Posted by matt on 26th of May 2009 at 03:07 pm
yeah well that's very easy for you to say that since you dont' live in the US. If and really the question is when the US loses it's reserve world currency status, it will cause a lot of pain for ordinary Americans because of what it will do to the country potentially. So again while you have points for longer term world stuff, for us living here in the US, it's hard for us to say, yeah let's do it, we want the pain
You are absolutely right Matt
Posted by hornsant on 26th of May 2009 at 03:28 pm
You are absolutely right Matt the wrong doings of the rulers are always badly felt by those who are ruled... it is perfectly unfair but you have to understand that the rest of the global trading comunity it sick of getting the dollar boot right where it hurts every time.
Yes you are correct..remember this?
Posted by ravun on 26th of May 2009 at 02:46 pm
"... Those who owed money encouraged their government’s expansionary monetary policies, knowing the resulting inflation would effectively cancel their debt. In fact, it was the Reich itself who had the most to gain from inflation, for it was the biggest debtor of them all."
yep.
Posted by matt on 26th of May 2009 at 11:13 am
yep.