November 11, 2007

Trigger Events

Every thing such as 40-year low interest rates (housing bubble), massive liquidity (insolvent banks), massive deficit spending (failed wars), massive tax cuts (for the rich) has FAILED to reverse the US economy from its downward spiral.

None of these measures can be retried.

If the Fed raises rates, to protect the collapsing dollar, the domestic economy will collapse in a sea of more foreclosures and debt.

If the Fed, lowers rates, to protect the collapsing domestic economy and squirt more lighter fluid onto the stock market bonfire, the dollar will accelerate both its collapse and replacement as the global reserve currency used to price oil.

If the Fed does nothing, the game will go on until some trigger event overwhelms the economic reality.






No comments:

Changing LINKS