cachaca

U.S. Dollar Paradigm Shift Underway

so...I see many opinions represented here...and it is just GREAT. No matter what side of the fence you picked.

Time will tell who was right or wrong.

Though I am a firm believer that we are on a path to inflation (too many greenbacks flooding the market), I will agree with the poster who said that too many countries base their economies on the dollar to let it go to hell all of a sudden.

I think this is the end of an empire...but we are not going to just die at 7am on Sunday. We are going down like a patient with cancer. The hair loss is normal after chemo, and recovery IS possible...hey Lance Armstrong did it!

U.S. Dollar Paradigm Shift Underway

I realize that we all have our own, but I do not agree with your point of view.

"
As far as money supply: we are in a deflationary time, not inflationary, as the goldbugs would have you believe. Money supply is coming down as the financial world is reassessing its risk models.
"

Money supply coming down!!! Ask the guys working for the Mint Presses. Ask the oil sheiks what they are doing with all the greenbacks they get from Oil. Look around for how much real estate has already been bought by foreign interests, and continues to be bought every day. Foreign banks helping American banks (a-la Citibank) is not for charity, but a great way to unload greenbacks.

I too believed that the money supply was tight, but it is not true. Anybody (who can afford) can find a bank that will loan them money, and at a low interest rate.

**
I think that we are at the end of an era...an era of economic domination by the USA.
I believe that within the next 12 months we will see OPEC switching to the Euro (following Iran's lead, who switched to the Euro in 2006).
I believe that China will slow down its growth to single digits over the next 5 years, and then to sub 5%. They just can't sustain this momentum.
I believe that Gold at $1000/oz is new new base, along with Silver at $20.
I believe that the new baselines in the price of most commodities are not mostly due to speculation, but due to actual market forces.
I believe that OIL is being heavily speculated by OPEC and the new high prices are being used as a baseline for non-OPEC oil producing countries (a-la Brazil).

All in all, your opinion, or mine, are going to be proven over the next few months.

Unlike you, I do not think that the toilet has been flushed. There is a lot of DUDU yet to drop...and just like my 4 year old did...the toilet paper is going to get pulled by the toilet when it does flush. There goes the value of your dollar.