Whence Poom?

[WDCRob]

I'm curious about what the board thinks about the timing of the Poom portion of EJ's theory.

[blazespinnaker]

Re: Whence Poom?

Great question.

I think ka-poom is the risk, but defending the dollar may be the only solution.

The big problem with ka-poom is that an inflating dollar can't purchase oil, which would be disastrous for the economy. Sure, we can still trade domestically, but energy becomes this massive cost.

So ka, I can definitely see, but poom? I can't see it.

[WDCRob]

Re: Whence Poom?

Aren't the costs associated with defending the dollar likewise disastrous?

[blazespinnaker]

Re: Whence Poom?

Aren't the costs associated with defending the dollar likewise disastrous?

I think the costs are recession, a reduction in living standards, and more people saving money. A big sacrifice, for sure, but I think the only solution.

[Finster]

Re: Whence Poom?

I think the costs are recession, a reduction in living standards, and more people saving money. A big sacrifice, for sure, but I think the only solution.

I ... gasp ... agree with you!

The "reduction in living standards" will come anyway. In the long run, consumption cannot exceed production.

[WDCRob]

Re: Whence Poom?

One thing I've never been clear on...doesn't all this (recession, savings, reductions in SoL) happen after Poom anyway?