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View Full Version : Run On The U.S. Dollar Soon



silversurfer1
30th November 2009, 20:41
The Drums Beat Ever So Louder...it's even starting to be reported by the mainstream press.

http://www.marketoracle.co.uk/Article15449.html

SilverLite
30th November 2009, 23:53
The Drums Beat Ever So Louder...it's even starting to be reported by the mainstream press.

http://www.marketoracle.co.uk/Article15449.html
So where will the money come from? :)

mark2112gum
1st December 2009, 00:20
The money will come from the people. The little guy always gets the shaft!!!

TheLoneRanger
1st December 2009, 02:38
While anybody redeeming their bonds at maturity are certainly free to do what they want with the money.. odds are the overwhelming majority of the 2 Trillion in matured bonds will b rolled over into a short term note.

As it happensThe Treasury buying up Treasuries, called quanitative easing, is not that big of a deal when the interest rates are zero or lower.. so by bidding a negative rate the Fed can put alot of short term paper on the block, only to buy it all up themselves, leaving the not so short term paper for folks to roll over into with there redemptions.. this only works well, heck even turns a profit for the Fed, when interest rates are zero to negative like they are now on short term paper. All you got to do is convince a portion of the redeemers to go back in a little bit longer for the barest smidge more of interest..

You still got to sell the new debt.. but new bonds at negative interest does discount the debt, and actually shrink the debt by bringing in a 1/10 ( or whatever) of a percent, if folks buy the short term ones..... and anything longer term and under 1% means the problem is postponed another year for next to notmuch.

At some point the economy either tanks or actually recovers... I bet buying another year to pull it together is what Ben would call a victory about now.

hippiebrian
1st December 2009, 08:08
The Drums Beat Ever So Louder...it's even starting to be reported by the mainstream press.

http://www.marketoracle.co.uk/Article15449.html

When did someone's blog become mainstream press? This guy makes some good points (although after seeing the mess Greenspann started, I don't trust the guy as far as I can throw him) but this can in no way be called mainstream press.

silversurfer1
1st December 2009, 08:47
When did someone's blog become mainstream press? This guy makes some good points (although after seeing the mess Greenspann started, I don't trust the guy as far as I can throw him) but this can in no way be called mainstream press.

Hippiebrian see the quote below I copied-pasted from the article:

"All of this is going to lead to a severe devaluation of the U.S. dollar... Which I expect to happen within 18 months. I examined these issues in much greater detail in the most recent issue of my newsletter, Porter Stansberry's Investment Advisory, which was published last week. Coincidentally, America's paper of record the New York Times repeated our warnings (nearly word for word) last weekend. Word is getting out."

hippiebrian
1st December 2009, 08:59
And here it is http://economix.blogs.nytimes.com/2009/11/12/the-great-shrinking-american-dollar/

Another smarter man than myself making some good points, but still, just theories. Hopefully they aren't 100% correct.