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Old 02-11-2010, 09:34 AM  
The Demon
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Quote:
Originally Posted by wig View Post
Well, I don't dispute that. However, that is not necessarily evidence for inflation (let alone hyperinflation). It is merely to say that the price of gold has risen.

On the flip side, if inflation were truly a threat, you would see the results in commodities across the board -- which we do not. What we see is that commodities were also part of an asset bubble that has collapsed from their highs.




It could come to pass, but... look what happened when the global financial system witnessed the largest credit crisis ever. The dollar soared and global investors rushed to put there money where?? Treasuries.

I'm sorry, but the outrageous claims with little supporting data are not coming from me.

And remember, I stated early on what would need to take place for your scenario to be realized and that at that point the threat would be more on the inflationary front.
Well, it's what I have my money in, I truly believe it's going to happen because it HAS to happen. There's no other way to go about it. The deficit spending will lead to the dollar being removed from being the reserve currency, and the treasuries being flooded back here.
Furthermore, what you're saying isn't evidence of what you're claiming. For some reason, and nobody can understand why, when people fear our economy is in the shitters, they throw their money into the dollar, mainly bonds. When they decide to be greedy, they sell off the dollar for foreign investments. Again, I don't know why that happens, but this isn't an indication that the dollar is getting stronger. It's an indication that fear and greed dominate our economy and when shit starts hitting the fan, people act irrationally.
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