It Didn't pass!

[Rajiv]

Re: It Didn't pass!

Since nobody adequately answered your question, let me take a stab at it. Bart/Finster correct me if I am wrong.

1. What is the credit crunch about? A. Loss of liquidity
2. What is liquidity? A. Possession of cash/currency
3. What is world reserve currency? A. US $
4. Why is there a credit crunch? A. Debt Defaltion going on

Q. So in a Debt deflation, loss of liquidity scenario, what is in short supply?
A. Cash/currency

Q. What happens to the price of something when it is in short supply?
A. it goes up!

The US$ going up is just the symptom of the grave credit crunch we are undergoing!

[phirang]

Re: It Didn't pass!

Since nobody adequately answered your question, let me take a stab at it. Bart/Finster correct me if I am wrong.

1. What is the credit crunch about? A. Loss of liquidity
2. What is liquidity? A. Possession of cash/currency
3. What is world reserve currency? A. US $
4. Why is there a credit crunch? A. Debt Defaltion going on

Q. So in a Debt deflation, loss of liquidity scenario, what is in short supply?
A. Cash/currency

Q. What happens to the price of something when it is in short supply?
A. it goes up!

The US$ going up is just the symptom of the grave credit crunch we are undergoing!

USD already trading down after senate news.

If house approves this, with metaphysical certainty we will return to the inflation trade of june/july and general indices will rise.

[Rajiv]

Re: It Didn't pass!

USD already trading down after senate news.

If house approves this, with metaphysical certainty we will return to the inflation trade of june/july and general indices will rise.

Yes indeed the dollar would go down because of Senate passage -- But the deed is only half done! And if the House follows suit, the US$ is going down!