Friday, March 17, 2006

Out of town without even an American Express card

"When foreign investors and central banks stop
demanding dollars, U.S. bond prices will fall,
which is another way of saying that U.S. interest
rates will rise. Mortgage and credit card rates
will soar, bursting the housing bubble. Home
prices in hot markets like California and New
York will fall by 50% or more in a matter of
months, bankrupting millions of over-extended
homeowners. The U.S. government will respond by
opening the monetary floodgates, printing as many
paper dollars as necessary to keep the economy
from collapsing. This surge in supply will send
the value of the dollar through the floor. Prices
for most things will skyrocket, and people whose
life savings are in cash, bank CDs or dollar-
denominated bonds, will be wiped out. Most U.S.
consumer finance companies will be ruined, along
with their stockholders."

Which means, you deal in cash or credit you're

What else is there?

Got your donkey yet?

Full rant.