Saturday, September 27, 2008
A US$ Collapse is a Certainty... Its only a matter of when
The citizens of the U.S. are going to experience a SIGNIFICANT crisis in confidence of their currency, the US$.
This will not start here in America. The beginning of the collapse will be initiated by the folks financing the U.S. Trade & Budget deficit (which is really just financing an unsustainable American lifestyle), the spiral downward from there will likely be breathtaking.
This does not mean the Euro is the answer. All currencies can lose purchasing power together.
Look folks, long before it happened I published that Fannie & Freddie, Lehman, and Washington Mutual would not survive the summer, and I was close... WaMu did make it into the Fall. I got a nice email from a reader complimenting me on my calls, and asked me how I could see this but the folks in Washington did not. Well, I am going to let you in on my secret...
I CAN COUNT, and I have worked on Wall Street for the past 20 years or so.
That's it, that is my secret. Then, in addition to that rather unremarkable talent, I actually READ the copious data available to the public.
Unfortunately, the VAST majority of the guys voting on the "Paulson Plan" as I write this, are innumerate (mathematically challenged), and have no background in finance, and the American voter is somewhat less informed than our elected representatives. This is not meant to demean their specific talents - I am sure they have them. They simply do not have the core competency necessary to do the right thing in this particular area - WHATEVER that is.
This will be a long, slow, grinding, lurching train wreck, irrespective of the Paulson Plan. It will be a short drop to the end of the rope in the plan's absence.
Mentatt (at) yahoo (d0t) com
Posted by The Short Story Man at 10:50 AM