Originally Posted by Ylw 98~~SNAKE~~
And we think we have it bad here! Those folks are begging for a piece of bread while we are rolling around in 50K cars on 5K dollar rims and tires. I see some light ahead but i think its the inflation train...
I just read a compelling article for a US$ currency crisis, but not for inflation. Basically, if the economy of the world continues to drop and people think that the only safe place to be is the US$. There could be a run to the US$ with everyone starts hording US$. Image going to the bank to get some dollars and they have none because everyone overseas has horded all the currency.
"The nightmare scenario that is staring us in the face, right here, right now isn't hyperinflation. It is in fact a collapse of monetary systems driving demand for dollars through the roof in a crescendo of attempted redemptions into collapsed ("no bid") asset prices - a demand that Ben will not be able to meet, as the collateral backing those dollars will have all been exchanged for toilet paper. Whether Bernanke holds all this trash on his balance sheet or manages to scam Treasury into exchanging it for T-bills, the result is the same - there is no collateral behind Bucky and as employment collapses no production to replace it with either.