Haigh

What's Going to Replace the Dollar?

A good case can be made for the incompetence of the US government and its sycophants in managing this crisis. But on the threat of hyper-inflation I propose that just like the Fed was able to create massive liquidity out of thin air with keystrokes on their computers, they will be able to pull liquidity out of the system as fast and maybe even faster. Any really bad burst of inflation will be relatively short lived. I expect the Fed to fuel inflation as a tool for floating all the under water mortgages, but once thats done they will start tapping the brakes. It will surely be spastic, but it will work. I think we can agree on two things with gold, first its will value will never go to zero, and second its future price movements will be volatile.