There was an article yesterday in the NYT stating that they US has hit a cross roads.  We have two choices either we devalue the dollar to the point where no nation will buy our dept, and we can sell products again to creat an American industry sector again Or we keep creating more Dollars in hopes that inflation will stem off to the point where we can keep our way of life in false hopes.

Quote from: Azorus on February 04, 2010, 12:54:22 AM
There was an article yesterday in the NYT stating that they US has hit a cross roads.  We have two choices either we devalue the dollar to the point where no nation will buy our dept, and we can sell products again to creat an American industry sector again...

This is a mixed proposition.  No nation will buy our debt, but our domestic products will be so cheap it might restart the economy.  Other countries have done the same thing.  Our debt is so severe, however, our creditor countries would be really! unhappy if we devalued the dollar.
I see no good way out of this.  We're way too far behind and deep in debt.

Quote
...Or we keep creating more Dollars in hopes that inflation will stem off to the point where we can keep our way of life in false hopes.

Inflation, as a cure, can cause a depression, which make the cure as bad as the disease which started the Great Recession.

It's a "d@mned if you do and d@mned if you don't" scenario.

--Lee

I think that was the point of the whole article, we are screwed either way.  a few more articles are out today for all you fark.com is a great place to see them.  the new articles go on to explain why we are damned pretty much.

Quote from: Azorus on February 05, 2010, 01:21:04 AM
I think that was the point of the whole article, we are screwed either way.  a few more articles are out today for all you fark.com is a great place to see them.  the new articles go on to explain why we are damned pretty much.

I agree.  Here's another:

http://news.yahoo.com/s/ap/20100212/ap_on_bi_st_ma_re/us_wall_street

China is rattling the nerves of financial markets worldwide with uncertainty of the final outcome with respect to the article above.  (The article may or may not be replaced by fresher news at a later date without being archived.)
What is certain is that Portugal, Spain, Ireland and Greece are hurting for more money in a big way.  This is also not helping calming people's anxiety toward the future of money markets.  Even if the American money bubble was re-inflated by Obama, the future is less than rosy for a number or reasons, IMHO.

--Lee

Best failed list ever!  With more than 450 banks added to the troubled banking list this year promises to be a fun one.  And the new addition to banking problems, the Credit Act!  Yes that is right the Credit Act promises to make more banks fail because they can no longer turn to the easy income of jacking up credit card intrest rates on unsuspecting slobs.  Good Luck to all this fine year of 2010!

http://www.fdic.gov/bank/individual/failed/banklist.html