December 26, 2008
– Comments (4)
Could this happen in America.........
so, when the icelandic krona collapsed, they didn't get anything close to deflation - they got a huge inflation of a short period of time. (not a hyperinflation, which is hundreds or thousands of percent, but a high percentage nonetheless.)
From the Prime Minister: "The problem wasn not solvency.. it was liquidity, and only liquidity."
It looks like the financial incompetence is indeed alive and well in the highest places outside the US.
Lol those guys at the end are so funny.
I think now might be a great time to visit iceland... well maybe in the summer not right this moment when it's probably stupid cold.
you are correct....when the krona collapsed prices skyrocketed in terms of local currency.
the $64 question is whether the world will allow the dollar to collapse? and also what actions our Fed will take?
isn't the Prime Minister a politician?
but without a doubt, this issue will trump all issues if it takes hold.
We get Laurels too, right?
I'll pose one follow up question: If the dollar starts being precipitously destroyed by market forces in the face of government bailouts, is there anything the Fed could do, or the central banks of the world could do to stop it? They can't stop deflation right now, so if we get runaway inflation, would they be able to stop that?
This is why I feel I am more bearish than even you al. I am bearish because there is absolutely no safety in anything. The only way I see that a person can win right now is by speculating using short etf's. Buy low, sell high, or sell short high and cover when it drops. The only way to win is to play that volatility, and that is risky in and of itself - but I could easily see the dollar drop 95%, oil drop 95%, gold drop 95%, stocks drop 95% , real estate drop 95%... I could see anything that you could possibly "own" dropping that much. There is no safety in anything. Not even in guns, water, bread, and ammo.
Best thing to do is to try to hedge as best you can with cash, at least some commodity play, some stocks, and some survival gear.
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