fx01 Sequitur all this supposed "Liquidity" is being offset by t

Sequitur

^ This. The US $dollar$ is the ultimate in counter-party risk currencies, backed by nothing except $100 trillion in unfunded liabilities. If you are getting out of Euros and into $, you just know the Euro is beyond fucked, a true Weimar Republic currency. Never forget German newspapers told its citizens to get out of Euros and to buy gold.

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Thu, 08/25/2011 - 16:52 | Caviar Emptor

memory of economic disasters is non-existent in the US, but very present in Euro countries. Germany especially so.

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Thu, 08/25/2011 - 17:26 | mac768

.. this is why the DAX is going to lead the Euro disaster downwards

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Thu, 08/25/2011 - 17:53 | toto

Smart but DAX is the only thing that prevents the euro disaster.

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Thu, 08/25/2011 - 16:56 | John McCloy

" The US $dollar$ is the ultimate in counter-party risk currencies"

And that should scare everyone because when our rates go to the moon they will all know why the world is looking to metals as the reserve currency. Bottom line is at this stage of the game IT DOES NOT MATTER HOW MUCH THEY PRINT because temporary stability is a falsity and the question on the horizon is when do the bailouts and QEs come to an end..even if they can keep this up for 5 years+ it must end either via massive bubble or force so all this supposed "Liquidity" is being offset by those seeking hard assets waiting for the unavoidable collapse. The deflation spiral must come or the Hyper followed by deflation either way the more they print the more rushes into safe metals waiting for the welfare to end. AND THAT is why central planning cannot exist perpetually.

Ben needs to raise rates to 8% and now.