Posted 19 May 2010 - 01:37 PM
May 19, 2010 · Posted in CHATS / POSTS
There have been many rumors now about if and when hyperinflation will set in, something we all are not looking forward to. It seems as though there may be no safe currency left, except precious metals. The word on the street is that the 1 tril bailout by the IMF and EU is bound to fail, hence Merkels recent ban on naked short selling of bank stocks and other German CDS and bond swaps. I think her actions speak 10 fold. The smart ones knew that eventually we would see that nasty word, hyperinflation, but we just were not sure when it would set in. Well that answer is here. First of all I’m glad to see Iraq trying to solve some issues with bond sales rather then going to the IMF or World Bank.
Borrowing from these 2 do nothing but ruin countries, look what they did to Jamaica. There is starting to be a lot of chatter of hedgefunds betting against the EU bailout. Many of them have come out and said the Euro could even DV to be more competitive. The short story is that countries spent more money then there actually was. They have been trying to let the balloon deflate slowly but it’s as though there is a little kid in front of the balloon with a huge needle just smiling. If China does nothing to increase their currency the US could look towards a DV as well. So in reality the Dinar might not have to RV that high if all the other larger nations are DV’ing their currencies to be competitive.
The continuing holdoff on the formation of the new GCC currency continues to strike my interest. Are they holding off waiting for Iraq and if so what does that mean for us? It will be interesting to see if the other EU nations followup with Germany. If you start seeing the US put bans on shorts again you know what’s going to hit the fan. Other information that seems to be coming out is that many Iraqi officials have said they would be happy to have new government seated by Sept and that if they can do that they would be in great shape. It seems there are more underlying issues than what many thought there were.
"OM. Lead me from unreal to real;
lead me from darkness to light;
lead me from death to immortality.
OM... peace, peace, peace.— ;"
Brihadaranyaka Upanishad 1.3.2839