Hi peaceandlove,
I don't see how Marc Faber is arriving at this conclusion, I read the exact opposite.
There are too many US dollars flying around and the national debt is out of control. The only thing that can happen is inflation, the same thing that happened here in Brazil during the 1980's, or in Argentina some years ago.
It took Brazil almost ten years to get the house in order and I imagine it will take the US a little longer because it is a mainly importing country whereas Brazil produced itself out of debt.
There is an interesting article at the following link which looks at the other side of Fabers' argument.
http://www.bloomberg.com/apps/news?p...d=a.SW_71xPhjA
I tend to think a little more radical than the article writer.
The US dollar, just like the DOW, is being artificially kept stable so as not to rock the international market. The world is playing the game of the Emperors' New Clothes. All it takes is one nation to say that the Emperor is naked and the whole lot will come down, as I said in other posts that if the US was called Argentina, the currency would already be deemed worthless.
The only thing propping up the dollar, in my opinion, is the potential of the purchasing market of the US, which is the biggest importer in the world. However, if other larger nations decide to open their markets wider and have a stable economy the US will bite the bullet.
Best regards,
Steve
Quote:
Originally Posted by peaceandlove
Marc Faber Expects BIG MOVES in the DOLLAR in the Next 10 Days
PeterSchiffChannel
September 03, 2009
VIDEO (10:09):
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