Great charts from Gary Savage...this is a sobering post but I think correct.I believe the dollar will rally from here but lets watch the charts !
http://smartmoneytracker.blogspot.com/2011/10/most-important-decision-bernanke-will.html
and a comment from Gary from the comments section...
I'm not really sure one can use the "it's never happened before so it won't happen this time" argument.
Housing had never collapsed before but it did this time. The global credit markets had never imploded before but they did this time.
History is crystal clear. Never in the history of the world has a country come back from a 100% debt to GDP ratio. If one factors in SS, Medicare and off balance sheet items like the last two wars it's more like 800% of GDP.
Just because this is the United States doesn't mean the laws of nature don't apply to us. Rome was the greatest empire the world had ever seen and yet they couldn't defy the laws of nature either.
The unfortunate fact is that we have now gone past the point of no return and a depression is unavoidable. Our only choice is whether it will be deflationary or hyper-inflationary.
I think the the next month or two will tell us which it will be.
http://smartmoneytracker.blogspot.com/2011/10/most-important-decision-bernanke-will.html
and a comment from Gary from the comments section...
I'm not really sure one can use the "it's never happened before so it won't happen this time" argument.
Housing had never collapsed before but it did this time. The global credit markets had never imploded before but they did this time.
History is crystal clear. Never in the history of the world has a country come back from a 100% debt to GDP ratio. If one factors in SS, Medicare and off balance sheet items like the last two wars it's more like 800% of GDP.
Just because this is the United States doesn't mean the laws of nature don't apply to us. Rome was the greatest empire the world had ever seen and yet they couldn't defy the laws of nature either.
The unfortunate fact is that we have now gone past the point of no return and a depression is unavoidable. Our only choice is whether it will be deflationary or hyper-inflationary.
I think the the next month or two will tell us which it will be.
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