Dan Walker

Path Dependency in the EU and U.S. Economies

icandoitdon, you are right about large investors holding (hoarding) oil which is causing our current problems. And you are, of course right about the FED debasing out currency. You shanked one into the woods with the part about China letting their currency float. That sinks the dollar and we can no longer afford to buy their output. We have to re-start producing our own goods. Great scenario for the US (after a couple of years of severe pain which will happen anyway), but the Chinese leadership is not populated by fools and they will not allow that to happen. Just think in terms of 'if I were in charge of that kind of cash inflow' to see which direction they may go.

My Take on the ECB: Head Fake?

Doesn't seem to be an edit button. Should read "They raise rates, they tank their weakest members; they lower rates, and Germany bails and brings back the Deutchmark

My Take on the ECB: Head Fake?

The ECB is in the same position as the Fed; can't do anything without screwing up. They raise rates, they tank their weakest members; they raise rates, and Germany bails and brings back the Deutchmark. Germany holds the bulk of the US$ EU reserves, so they are already being bent over courtesy of the strong Euro. Add Germany to Ireland's recent rebellion and bye bye EU. Option 2 would be good for the US. What do you want to bet the ECB sits on their hands?