thanks to Ty Andros ...
(snip)"Look no further than the NEWLY ANNOUNCED economy commission headed by Paul Volker and Christina Romer to see from where the justifications for further STIMULUS 'money printing' will come. Then, the mainstream media will SCARE the public and the politicians will turn this FEAR (false evidence appearing real) into foolish action over and over again -- the printing press, borrowing and spending as SALVATION, rather than raising incomes and economies through the PRIVATE SECTOR. More and more government interference and saving the insolvent-- this is an impossible task.
The G7 central banks will increasingly step across the line and expand lending to more and more of their economies, and the new Fed lending facility originally earmarked at $200 billion will be expanded far in excess of previous estimates, maybe even quadruple. Since PRUDENT savers won't lend to unqualified borrowers, the government will (this is moral and fiscal bankruptcy). The latest TRAUNCH of the auto industry bailout number is another $25 billion. The bank bailout ultimately will be 5 to 10 times its current size before it is solved. Postponement of nationalization and extinction for insolvent firms will massively INFLATE its ultimate costs as public servants attempt to save their biggest campaign supporters and fellow MONEY monopolists.
As more and more debt comes due this year, INTERNATIONALLY the Dollar will catch a bid due to a SHORTAGE of Dollars. As most currencies decline relative tothe dollar, the cost of meeting their 'dollar denominated' obligations SKYROCKETS, and that includes foreign central banks involved in those massive swaps made last fall. At some point, this will trigger a call for a devaluation of the dollar. Ben Bernanke DOES NOT WANT A STRONG DOLLAR. Don't miss out of the corner of your eye that the dollar can rally and so does GOLD. Decoupling has begun. Gold is at or near all-time highs ad opposed to all currencies, and central bankers worldwide are determined to keep it so. They want to inflate away debts aggressively.
Last week, a senior official at the Swiss National Bank announced their intention to keep the Swiss Franc from rising by any means necessary. HE WAS NOT KIDDING. Unfortunately, the Swiss Franc is a currency used in the carry trade and as those positions are unwound, the Swiss Franc catches a bid as those borrowings are repaid. Huge portions of the New EU, borrowed in Swiss for homes and business investments, are now on the hook for 20, 30 or 40% more to repay as the currency in which the borrower lives and operates has fallen by that much against the Swiss franc.
Look for the Swiss, US Dollar and Japanese Yen to BE STRONG as borrowers scramble to get them to pay off their debts and convert the home currency into the currency in which they originally borrowed (Yen, Dollars, Swiss Francs). Once this is done, look for the dollar to then reverse probably mid-year and head radically lower. The Swiss will stay stronger as will the Yen; they do not face the money printing requirements in which the US will indulge."(snip)



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