Huge problems in US economy?

[#1]

The Investor's Daily Edge says:Low interest rates are damaging to the key individuals that can rescue us . savers. Save the savers! American debts are way, way past the point of ever being repaid. Foreigners are balking at purchasing more American deb. The shadow banking system that directly caused this American catastrophe continues to bring forth more and more derivatives. I can forward the article by email to anyone interested

[richardw]

Just a thought: to me, the question is "how much inflation needs to happen so that the U.S. *can* pay off it's debt". Until the debt isn't in dollars, they own the ability to pay it, or not pay it. That's why China is starting to set up currency swaps with other countries. Also why they'll increasingly buy resources, even if they don't need them yet - rather have steel than dollars.

[john_1]

the question is can you trade and profit from this knowlage or is it clouding you.

[john_1]

inflation is coming that be certain...

[AJT]

Agree - inflation is coming, the US Central bank professes they will remove liquidity from the markets when they see signs of inflation, but they have no tools to do this. IMO a drop in the value in the US$ will result in an increase in commodity prices, therefore resource sector should do well..

[richardw]

Sadly I'm trading counter it :) Wait for the story to develop, then short, and short the obvious outliers so the risk is reduced. I'm assuming the jump in stocks etc is partly because people holding $ are getting into everything else. But I think the nearer-term has some serious black swans waiting to swarm, and each time they print $, they lose more of their superpowers.