First of all we have to keep in mind the size of mess in where US economy is. Inmensely huge. And then to monitor the greater risks, that right now is the US dollar. Authorities cannot do much to fix the problem, however any tinny mistake could have fatal consequences for the US economy. Main priority right now is and has to be growth. What makes US dollar to be defenseless before storms around such as "the mother of all carry trades", such as flee of capital by fear attacks, or whatever. Authorities cannot do anything to protect the currency because their focuss is the opposite.
Nowadays, everybody knows that US dollar is into one way trip: down. The US dollar is no longer the standard reserve currency. Last quarter, central banks chose other currencies for new acqusitions. Yet it is one reserve currency. The US dollar is no longer the standard trade currency. More and more curencies are used for international trade. Yet US dollar is the main one. Till recently, people told, what else? And they did not find an answer. Now, since few days ago, there is an answer: the ancient gold. The same standard reserve currency and trade currency since 4000 years ago until Bretton Woods, or more accurately until 1971. If that happens disorderly, in panic mode, trillions of US dollars from everywhere around the globe would be on sale cheaper and cheaper. In current circumstances, could US dollar become suddenly a worthless piece of paper? Yes, it is a very real posibility. Not a certainty, not a prediction, just a serious posibility. Which consequences would it have for US economy? Tragic. Deposits, loans, payrolls, savings, anything denominated in US dollars would be worthless too. Prices in US dollars would skyrocket from bread to water to cars, everything. Unfortunately, authorities could not react on time. And, due to current circumstances they cannot act preemptively. This situation will be like it is now until US economy moves from third phase until authorities have some freedom to aply restrictive rules. One year more or less. Until then, just to get ready with options, and to monitor the situation carefully to be the first leaving the ship or at least not the last one. Peace and best wishes. Xi On 4 nov, 20:27, xi <[email protected]> wrote: > it might tell what US eoconomy is going to be within two years. > > Fed Retains Its Pledge to Keep Rates Low for ‘Extended > Period’http://www.bloomberg.com/apps/news?pid=20601087&sid=a7pq96oKRoh0&pos=1 > > About inflation. > Reminder.http://groups.google.es/group/world-thread/browse_thread/thread/3e9c9... > > Peace and best wishes. > > Xi --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "World-thread" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/world-thread?hl=en -~----------~----~----~----~------~----~------~--~---
