Friday, June 26, 2009
Gold, Green and the Fate of the Dollar -- Seeking Alpha: "Well, basically, the scenario we envisioned back in 2004 involved a few stages. The first stage is that [The United States] would borrow immense amounts of money, more than we could ever hope to pay off, which is what we did from the 1970s through 2007. Then that load of debt would cause a financial crisis, in which the banks got wiped out, mortgages defaulted on an unprecedented scale and people went bankrupt. That too happened. Then the next step is that world governments would open the floodgates: In order to avoid a 1930s-style Great Depression, they print as much new paper currency as it takes. And that's what's happening now."
Posted by Mother of All Carry Trades at 1:09 AM