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Since the credit crisis started intensifying, the dollar benefited from a global flight to safety in US Treasuries and a scramble for dollars to repay USD-denominated debt. But more recently, US-specific worries caused the dollar to reverse the uptrend that had commenced in July. This post discusses the outlook for the greenback against the background of Bernanke & Co. pursuing an “inflate or die” approach to rescuing the ailing US economy and fending off the forces of deflation. [...] More on this topic (What's this?) Will the Dollar Be Replaced As a Reserve Currency? (Investment U, 5/3/12) The Death of the Dollar (Learn Mining News, 4/26/12) USD Rally Continues (Jutia Group, 5/9/12)
Consider that one year ago Royal Bank of Scotland paid US$100 billion for ABN Amro. Guess what that seemingly impossible amount would now buy … [...]
This post features a recent Barron’s interview with Stehanie Pomboy. Pomboy is bearish and of the opinion that it will take consumers at least five years – and probably more – to recover from the credit crisis. She is convinced that a long period of paltry US economic growth is in store – akin to what happened in Japan in the 1990s. [...] More on this topic (What's this?) Is a Bailout on the Way for Spain’s Bankia SA? (Wall Street Daily, 5/8/12) Aftermath of a Crisis (Finance Documentaries, 5/18/12) In Today’s Market, Can You Afford to Be Misled By Fantasy Financial Reporting? (the Underground Investor, 3/12/12)
The US Fed yesterday pulled out all the stops in a frantic effort to save the US economy from collapse and stem the deflationary forces. This post discusses where the Fed’s “betting the ranch” policy leaves the stock market. [...] More on this topic (What's this?) Krugman: Why the U.S. Economy Could Use Higher Inflation (Money Morning, 5/2/12) Gold Prices Jump When Bernanke Hints at Stimulus (Learn Mining News, 4/10/12) Sterilized Quantitative Easing: Get Ready for QE2.1 (Investment U, 3/23/12)
This post deals with the so-called “Blob” – a morass of financial intervention that has eaten every bad financial deal too large to let die on its own. “… I expect hyper-inflation and a very weak dollar before all of this is over and those that are buying low coupon ‘Blob’ backed assets will wish they hadn’t,” said guest contributor Bennet Sedacca. [...] | ||||||||||||||||||||||||||||||||||||||||||||||
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