Quote:
Originally Posted by Ethersync
We won't get German style hyperinflation unless wages are fixed to the rate of inflation and adjusted on a weekly or possibly monthly basis.
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Man, I hope there's no hyperinflation. Those old newsreels of Weimar notes being piled on to a wheelbarrow to buy a baguette are really disturbing.
Quote:
Originally Posted by Ethersync
If the government devalues the dollar to make our massive debt easier to pay off
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That's always the risk and the temptation. Devaluation is the easier way to get out of debt than actual production/productivity increases. Americans would do well to guard against that.
Quote:
Originally Posted by Ethersync
The game changer here is the pound and the euro both are in a world of hurt. This could give the dollar another decade or more of life. We will likely see dollar/euro parity. We could see dollar/pound parity. 2009 is the year the world realizes how fucked Europe is.
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Greece and Spain are hurting bad--both economies have a strong tourism focus. Do you see the same level of economic distress spreading to other more economically diversified Western European nations (GB, France, and Germany)?