Interesting article... Kind of follows the reset posting. I am not saying I agree with 100%, however there are some mighty interesting points made. Also pay attention to the related graphs on the right.
Justified Too
Admiral
Registered: 02/06/06
Posts: 681
Loc: Denver, Colorado
Very interesting. Also not sure of what we will actually see. I think we are going to see some SIGNIFICANT demand destruction here soon, but I am not well informed on just what kind of impact that will have.
Short-term, capital is once again poised to move to commodities, but ultimately, they don't actually want to take 'possession', so you build in a situation where you will see another sell-off like we witnessed just recently.
However, long-term it may be an excellent 'investment' compared to other options out there.
WaterMutt
Bilge Rat
Admiral
Registered: 01/14/04
Posts: 10236
Loc: Massachusetts
After this $700B is borrowed and blown, the dollar value it going to plunge, IMO. I'm not a gold bug, but it is looking pretty attractive right now, along with silver. I think long term though, the demand for oil will fall and that may keep it down around the $200 mark.
_________________________
"That's my boat..." -Forest Gump
After this $700B is borrowed and blown, the dollar value it going to plunge, IMO.
Please keep foremost in mind that this is not a $700 Billion authorization, but a $700 Billion REVOLVING LINE OF CREDIT THAT CAN BE USED OVER AND OVER AND OVER.
The total debt to be racked up on this 'card' has NO LIMIT in the current bill.
_________________________
"Corporations have been enthroned, and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until the wealth is aggregated in the hands of a few, and the Republic is destroyed." -- Abraham Lincoln "America will never be destroyed from the outside. If we falter and lose our freedoms, it will be because we destroyed ourselves." - Abraham Lincoln -
Registered: 01/13/03
Posts: 2315
Loc: Fruit Heights, Utah
What will happen to interest rates? There is only so much money available for loans and with an additional $700B being eaten by the govt supply and demand would cause interest rates to rise. Or we could just print more money, but then the dollar gets devalued and oil prices rise and inflation is huge. there is a very very very thin line that needs to be balanced, and I am afraid of where it's going.
_________________________ This is grain, which any fool can eat, but for which the Lord intended a more divine means of consumption. Let us give praise to our maker and glory to his bounty by learning about... BEER.
As money continues to get more scarce and lenders unable to lend, look for the cost of money to sky rocket. Not a good time to need a loan...
_________________________
"Corporations have been enthroned, and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until the wealth is aggregated in the hands of a few, and the Republic is destroyed." -- Abraham Lincoln "America will never be destroyed from the outside. If we falter and lose our freedoms, it will be because we destroyed ourselves." - Abraham Lincoln -
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