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Dan,
I agree completely....it's a damn shaky house of cards just waiting for the
first good sized north wind to blow, or for printing ink to be on backorder.
On a larger perspective, I'd be curious as to other RT's ideas on safe
havens upon whatever the depth of the "apocalypse" is that will befall us
eventually. What, if anything, will be investment vehicles to ride out the
impending storm in? A usual answer is government paper since they have never
defaulted, however, can you really trust this history in the current
environment, i.e. if everyone rushes for the exits worldwide at around the
same time? Are there historical investment parallels that can hold water in
today's picture, or is it time to start using my pen knife and slicing my
mattress and stuffing it with bank deposits? BTW, my spare room papered with
old German Marks looks nice when the sun hits the room.
I heard some time ago that the key indicator to watch would be net outflows
of cash from the US, which would mean foreign money supporting our past
treasury auctions would be heading back home, but I was surprised to see in
this thread a small number like 13% of foreign holdings of our debt. I
thought I recall the number being much higher.
George
>I do have a question about one paragraph of Gitanshu's reply:
>
>If the balance sheet of the USA was presented to any banker that just stuck
to
>government
>appointed rules and capital adequacy norms of lending applicable to
corporate
>loans or
>private individual loans, the banker would not loan the US Government any
money
>in this state
>of affairs.
>
>I can think of two questions: since the govt can print its own money,
aren't the
>normal credit analyses meaningless? and doesn't this sound a lot like the
>internet stock mergers, where one billion $ company making losses 'prints'
more
>stock to take over another billion $ company making losses?
>
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