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The Second Great Depression
http://www.atlanticfreepress.com/content/view/1033/81/
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“Doomsday Dick” and the Plague of Frogs
http://www.atlanticfreepress.com/content/view/1050/81/
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Archive here: http://www.atlanticfreepress.com/com...mid,2/user,77/
http://www.atlanticfreepress.com/content/view/1033/81/
The meltdown in housing will soon be felt in the stock market which appears to be lagging the real estate market by about 6 months. Soon, reality will set in on Wall Street just as it has in the housing sector and the “loose money” that Greenspan generated with his mighty printing press will flee to foreign shores.
It looks as though this may already be happening even though the stock market is still flying high. On Friday, the government reported that net capital inflows reversed from the requisite $70 billion to AN OUTFLOW OF $11 BILLION!
It looks as though this may already be happening even though the stock market is still flying high. On Friday, the government reported that net capital inflows reversed from the requisite $70 billion to AN OUTFLOW OF $11 BILLION!
“Doomsday Dick” and the Plague of Frogs
http://www.atlanticfreepress.com/content/view/1050/81/
The current account deficit (which includes the trade deficit) is running at roughly $800 billion per year, which means that the US must attract about $70 billion per month of foreign investment (US Treasuries or securities) to compensate for America's extravagant spending. When foreign investment stumbles, as it did in December, it puts downward pressure on the dollar.
So what does it all mean?
It means they don’t want our stinking greenbacks. And, if they don’t resume purchasing our debt (US Treasuries or securities) the dollar will join Rocky Balboa on the canvas peering out blankly at the klieg lights.
Just last week, the Royal Bank of Scotland conducted a survey which showed that Central Banks in Italy, Switzerland and Sweden have made “major adjustments” in their stockpiles of dollars. The cutbacks raise the fear that a stampede away from the dollar could begin at any time, triggering a global currency crisis of biblical proportions.
So what does it all mean?
It means they don’t want our stinking greenbacks. And, if they don’t resume purchasing our debt (US Treasuries or securities) the dollar will join Rocky Balboa on the canvas peering out blankly at the klieg lights.
Just last week, the Royal Bank of Scotland conducted a survey which showed that Central Banks in Italy, Switzerland and Sweden have made “major adjustments” in their stockpiles of dollars. The cutbacks raise the fear that a stampede away from the dollar could begin at any time, triggering a global currency crisis of biblical proportions.
Archive here: http://www.atlanticfreepress.com/com...mid,2/user,77/