Strategies & Market Trends
The coming US dollar crisis
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Persistent high trade deficit of the last few years,
extremely high level of USD reserves in foreign central banks,
and the recent series of interest rates cuts by US Federal reserve
have led to the dollar crisis, a sharp drop of our currency.

Any currency crisis eventually involves much higher 10-year and
30-year interest rates and a meltdown of all asset classes,
with the possible exception of precious metals. This thread
will focus on the discussion of ongoing USD currency crisis,
and the ways to survive it.

Long-term target (~ 3-5 years) if the Fed stays the course:

US asset prices may skyrocket, in dollars, along with commodities,
if these actions are taken to the extreme (as they were) and the country falls
into hyperinflationary depression. US asset prices will fall sharply
priced in sound currencies and gold.

Hyperinflation chart - USD in gold OZ, monthly, is a straight line that
goes to zero in 2011.*&fd=1&fm=1&fy=2001&ld=31&lm=12&ly=2009&y=monthly&q=volume&f=png&a=lin&m=0&x=

Current tentative scenario: A double dip recession, with the second deeper dip
happening as the Fed tries to battle inflationary result of enormous bailouts. For it
to unfold, US has to come out of recession this year. Realistic scenario for USD:
Similar to 1985-95. The dollar will drop to new lows again and will probably bottom
in the 60-s. The grounds: US external net indebtedness is not that high.
$20 Trillion US assets held by foreigners, $17 Trillion foreign assets held by USA.
A genuine recovery after 2011-12 driven by manufacturing (optimistic scenario).
Hyperinflation for decades (pessimistic scenario).

"There is no means of avoiding the final collapse of a boom
brought about by credit expansion. The alternative is only
whether the crisis should come sooner as a result of voluntary
abandonment of further credit expansion, or later as a final
and total catastrophe of the currency system involved. The
breakdown appears as soon as the banks become frightened by
the accelerated pace of the boom and begin to abstain from
further credit expansion."

-- Ludwig von Mises

The Dark Side of the Credit Boom

"Against this backdrop the crucial question is: where is the borderline between a "good" and "bad" rise in debt-to-GDP ratios? To Austrian economists the ratios spell danger. They maintain that today's government-controlled paper-money systems have decoupled credit expansion from the economies' productive capacities: "circulation credit" feeds a "credit boom" that is doomed to end in severe economic, social and political crisis. Austrians fear that the collapse of the credit boom will lead to the destruction of the currency through a deliberate policy of (hyper-)inflation, destroying the free-market order."
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59986EXCELLENT READ!!!!! We know too that globalization is a permggersh-an hour ago
59985Whys do Americans continue to tolerate a political system which encourages legaElroy Jetson-Monday
59982trump family at work NEWS & POLITICS How Ivanka Trump &aggersh-Monday
59981More on how we're getting fcuked Global markets jump ggersh-Monday
59979Yes... I got that wrong. Thank you for the clarification. You could be right abThe Pre Beakerite-last Saturday
59978John Law was Scottish "economist" and serial fraudster who caused the Elroy Jetson-last Saturday
59977I think it was her..... brilliant -ROFL-ggersh-last Saturday
59976The Scots have a good historical record of being good with economic analysis. JThe Pre Beakerite2last Saturday
59975Cool, looks great, but that's not my style.ggersh-last Thursday
59974No Miltons. I'm a health food person who's worked in restaurants. I likeDoren-last Thursday I'm fairly safe depending on reach, but I live 27 miles outside of ggersh-last Wednesday
59972The 1953 MK-54 nuclear weapon installed on Davy Crockett nuclear rockets were deElroy Jetson-last Wednesday
59971Shit. I live in San Diego... they don't even mention us. We've got plentDoren-last Wednesday
59970Most of the unrecovered atomic weapons are radioactive debris fields after the eElroy Jetson1last Wednesday
59969That is an excellent site. Subscribed !The Pre Beakerite1last Wednesday
59968In the age of trump [youtube video]ggersh1last Wednesday
59967but at that point how valuable would a rock from the moon be? It depends. TThe Pre Beakerite1last Wednesday
59966All lunar samples belong to NASA and can never be given away or sold. In the fElroy Jetson-April 18
59965Fuck me, poisoning mericans ain't enuf, go after them for trying to survive ggersh1April 18
59964he is a murderer you dumb cluck the pals were so arrogant they VOTED against sPogeu Mahone-April 18
59963So you can either start a project to fly to the moon to help your offspring pay The Pre Beakerite-April 18
59962[graphic]The Pre Beakerite3April 18
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