Bye bye american pie

[TOM4CWB]

Hopperbin,

This is all about confidence or lack thereof... in people. Money has always been numbers written on paper... and always will be.

Who we place in charge of the levers of currency and financial institutions... will determine the volatility and stability of our economy.

Maximum volatility occurs with a distrust and destabilisation of our financial institutions.

This is why the Canadian situation has been much less disruptive than the US/EU retraction...

[gregpet]

Does anyone think that maybe the devaluation of the US dollar is a brilliant strategy? Makes imports more expensive, implies buy American. Exports so cheap gets the economy going. I don't know how they will ever get their debt under control but do they need to? WTO relies on US funding for it's existence, many other organizations (G7, etc...), could they survive without the US?

Is the US the country that cannot go bankrupt because of the needs and dependence of all the other countries? Not the big 3 but the US cannot fail but who can bail the US out. They can't spend their way out so they have to stimulate their way out by devaluing their currency. They can come back strong since they already have all the infrastructure and workforce in place.

[cottonpicken]

You deflationists fail to understand that inflation is the ONLY option!!!!!

[cottonpicken]

http://charts3.barchart.com/chart.asp?vol=Y&jav=adv&grid=Y&divd=Y&org=stk&sym= DXH9&data=H&code=BSTK&evnt=adv

Cash is king?

50 trillion unfunded liabilities
trillion dollar deficits
hundreds of trillions in derivatives

and money isnt going to be printed?

[gregpet]

I'm not disagreeing with you, I just think this is how it may play out. Cash is king only if it is worth something.

[TOM4CWB]

Cotton,

It is undeniable that both inflation and deflation... can occur in the world economy... at the same time.

Tin pot leaders like Robert Mugabe saying 'better times were
beckoning.'
Are proof of how inflation can be created... of this there can be no doubt. A nation that produces nothing... and just prints zeros to create currency... is doomed.

The US actually is innovative... and does create value for the rest of the world... which is why they are the basis for the global economy... along with Japan and the asian Tigers.

Hence deflation in the US/Japan can exist... right along side... Zimbabwe's central bank issueing 10-billion- dollar
banknotes!