Ishortyou

Let's Just Say It: Print More Money

I aggree this is exactly what is going to happened they are going to dump the dollar and transforem their reserves on preciosu metal or gold or other tangible assets, because there is nothing that supports the dollar value not even our GDP because our GDP/Debt ratio is so ridicoulus distorded.


On Jan 23 05:42 AM Jerusel wrote:

> It funny that you mention "demand" is disappearing when it was artificial
> in the first place. Fanny, Freddy, low interest rates, easy debt
> and the irrational decision of foreigners to lend us trillions of
> dollar among other things artificially increased our demand for just
> about anything. Its easy to borrow in the present to increase ones
> quality of life, but expect future quality of life to suffer while
> debt is being paid back. Oh, and expect demand to return to normal
> levels.
>
> Sure, our government can print trillions of dollars and borrow trillions
> more for "stimulus" packages, but pretty extreme consequences will
> result. Because the dollar has been the worlds reserve currency for
> the past few decades, foreign central banks have built up massive
> reserves of dollars. These, among other things, helped maintain lower
> inflation then would have otherwise been manageable, allowing the
> US consumers to go on a huge trade deficit inducing spending spree
> for the past two decades and allowing the government to finance programs
> and wars it would have otherwise been unable to.
>
> As a result? We have the highest personal debt to GDP ratio in our
> history, passing the levels reached in 1929 a couple of years ago.
> American consumers owe trillions, the government owes trillions and
> has less foreign reserves than Libya(haha, is that possible?) and
> foreigners are going to be getting itchy. You want to know whats
> going to set them off? Printing money without worries. As soon as
> the printing presses crank up to full speed, speculator pull their
> money out of treasuries(they will) and the value of the dollar starts
> falling, these foreigners are not going to like the fact that their
> reserves are rapidly falling in value. As soon as the world loses
> faith in the dollar.... BOOM, they drop their reserves and hyper
> inflation is nock'n.
>
> Lets see if Obama takes Paul Krugman's (and now your) advice. I've
> already moved out of dollars and am thinking about shorting treasuries,
> but you have fun with you printing press. Let me know how it goes.

Let's Just Say It: Print More Money

I think they are already printing dollars like crazy to pay goverment obligations, and not only that to fix the economy you have to have the money and Obama clearly doesnt have it, so the next step to come up with the money is to make it yourself i.e. print it like hell, those money printing will continue because is the quick fix to the problem at the moment, the only problem though is that you make the currency untrustworth, making traders to trust something else than the dollar, if I were you, I would probably be like to get paid in GOLD, at least I can a tangible asset that has been used since ancient times as a trading instrument, but for the dollar there is not gold to back it up, not even thin air, thanks to Roosvelt , the dollar stop been PEG to Gold after the war because the nation was bankrupt and need the liquidity to operate but guess what that trigger instabilities and contribute in part to the situation that we are right now.

$120 Oil's Struggle with the Dow Industrials

Nah we will not use dark ages fossil fuel too much of a headache and too polluting, we gonna switch to new age technologies such as electric and hydorgen-water techs.

Five American Innovators to Buy During the Current Downturn

Zoltek has a lot of potential now that some countries are jumping into the 'green' wagon, hopefully their sells will be up.

Wall Street Breakfast: Must-Know News

Commonsense1, this issue of derivatives is now been addressed more directly by Goldman Sacs, they are going to put in auction SIV's structured investments derivatives currently value at 7 billion, so the market will decide for the first time how much are these papers worth and allow a working price for these and other kind of derivatives in the future...so no more second guesses... the market will tell how much they are worth just like in a common stock.

Wall Street Breakfast: Must-Know News

they keep and save the cash as they deleverage, the books will appreciate by default, it's just a matter of time before those books are sound enough again to reinstate their triple A, not a brainer really.

Wall Street Breakfast: Must-Know News

In respect to Ambac and MBIA, they need to keep and save their cash they already have and any cash coming into their coffers, deleverage from annoying debts, obligations and risks, stop paying dividends to increase their book value and once their book value is adequate and sound reinstate their triple A ratings again to start writing down new public bonds insurance only in low risk areas of the market. This strategy in itself is the best advertisement to recruit new business because the new clients will precieve that " if these folks were able to survive the credit crisis then they can survive anything".

AMBAC and MBIA are already doing this strategy, so now its a matter of time for their book value to appreciate quarter by quarter to reinstate their triple A again, you dont have to be a rocket science to figure this out.