Bye bye american pie

[cottonpicken]

Fed cuts to "between" 0 and .25.

Also announce monetization of debt.

HaHa.

I win.

[cottonpicken]

"There are men regarded today as brilliant
economists, who deprecate saving and recommend
squandering on a national scale as the way of economic
salvation; and when anyone points to what the consequences
of these policies will be in the long run, they reply flippantly, as
might the prodigal son of a warning father: ‘In the long run we
are all dead.’ And such shallow wisecracks pass as devastating
epigrams and ripest wisdom."
- Henry Hazlitt

[agstar77]

Strategy : everyone goes to cash . Inflation bites as shortages emerge. Cash worth nothing! Only way to de-lever the investment bubble. My guess is June of next year the trend will be established. The only way U.S. government can repay debt is with devalued dollars. Commodities should rise about the same time. Anyone else have an opinion?

[jensend]

my guess is that unless you're short the american dollar or the canadian dollar goes in the toilet with the greenback this rally will be muted. gold was up about 0.2 per cent more than the american dollar was down today so if you go to repatriate your profits you lose most of them on the conversion. i didn't do the calculation to see if gold was up or down in euros but i think down. could just as well be short the usd as long the gold at least in the shortterm.

[cottonpicken]

Well see you dont think.
Gold is raging in every currency minus yen and usdx.
And if agstar can regurjistate a great inflation head investment i'll give him a gold star.

[bgmb]

Whats that Dire Straits song "Money for nothing" "and chicks for free" i think it goes

When do you predict we will get the second part Cotton?

hahaha

[parsley]

Glad you read Hazlitt, cott. Wasn't his primer called, "Economics in One Easy Lesson"? I don't have it where I am, but it should have beem mandatory in every school thirty years ago.

I presume u have some heavy bricks that need dusting. I find them hard to lift. lol Pars

[Hopperbin]

From this aspect, therefore, the whole of economics can be reduced to a single lesson, and that lesson can be reduced to a single sentence. The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.

From Henry Hazlitt

[Hopperbin]

From Hopperbin

When a large enterprise goes down, they bring along everyone associated with them.
The large enterprise will most likely still be in operation after because they are prepared. The associates will be the ones to suffer and die.

[TOM4CWB]

Hopperbin,

This is 'Economic Vegitation'... a distraction to say the least.

Instead... in reality what we are seeing the preperation for an integration of currencies... for a reset on global finances.

Japan again is a very good example ofthe US position... and deflation is as likely an outcome in presentn conditions as inflation.

The real danger is volitility... and the lack of preperation to accomodate the stresses caused by the unstable economic future we will encounter!

How many have a 'volitility' strategy worked into their 2008 and 2009 marketing plans? What % of our income should be spent on this risk management?

The

[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.