tag:blogger.com,1999:blog-8240318064031929738.post6724730979043346247..comments2009-11-10T21:33:41.878-05:00Comments on Chart Swing Trader: State of the Market - 11/10/09Machttp://www.blogger.com/profile/14065990507428929501noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-8240318064031929738.post-14754150527627302832009-11-10T19:22:06.390-05:002009-11-10T19:22:06.390-05:00Well, most likely this is myopic but here's ho...Well, most likely this is myopic but here's how it appears to me - it's clear we don't plan on curtailing spending so when confronted with not being able to meet our obligations - we either flat out default on our debts or debase our currency, same difference but perhaps one is less obvious for a while. So we print, and like you said, all these dollars flow into assets which, ultimately, reflect the dollar devaluation via higher prices. We are not recovering, just more dollars chasing the same shit. It'll work for a while, until confidence in the dollar becomes too stretched. Then they'll have to take their foot off the gas (to the printing press), jawbone about fiscal restraint let dollar strengthen for a while, then ratchet back up, etc - my guess is they will repeat until they can't. By then, Elvis will have left the building. It's like putting frogs in a pot of cold water and slowly turning up the heat.<br /><br />- bulletheadAnonymousnoreply@blogger.com