Kunst

Country Default Risk

What does default mean when you can print as much money as you want, and your debt is in your own currency?

Global Stock Markets: Valuations Improving

Tough crowd!

Global Stock Markets: Torrid October Ends with a Bang

OctoberFaith, I'm trying to make sense out of your words, but I'm not succeeding.

Global Stock Markets: Torrid October Ends with a Bang

Governments across the world are creating new money at a furious clip, none so much as the US. This will produce an adrenaline rush for economies, none so much as the US. However, it will not last.

Not too far down the road, all this extra money is going to lead to much higher interest rates on US government debt. That will drive a stake through the heart of the stock market. Make some money on the bounce now, but be prepared for the next drop. We have not seen THE bottom yet.

Impending Inflation? The Global 'New Deal' All but Guarantees It

What's different about the US is that our debts are in our own currency, and we can create more if we want. All those other counties that are making $100B guarantees have to use the reserves they have accumulated by selling us real stuff.

How do we get from deflation to inflation? Just redeem US Treasuries with brand-new cash. Or alternatively, just print money instead of borrowing it. We're looking at a trillion dollar increase in the national debt next year (there's your REAL deficit). Where is that kind of money going to come from? It even exceeds our current account deficit.

Does ANYONE really think we are going to pay off our debts honestly?