tag:blogger.com,1999:blog-32931256.post8243160348211876996..comments2024-03-22T05:20:44.167-07:00Comments on The Disaffected Lib: Another Warning On US DebtThe Mound of Soundhttp://www.blogger.com/profile/09023839743772372922noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-32931256.post-5969670825108622172007-02-26T14:12:00.000-08:002007-02-26T14:12:00.000-08:00It is my belief that an economic crisis in the U.S...It is my belief that an economic crisis in the U.S. is not only probable but inevitable. China, Japan, the oil states each have enough U.S. debt to dump on the market to start a dollar Crisis.<BR/><BR/>It's possible it will be a deliberate attack on the U.S. but it's also possible that it will happen without malice, caused by a trading algorithm that kicks in at some point and floods the market with U.S. paper, currency or debt.<BR/><BR/>Over leveraged hedge funds and derivatives, nearly absent cash reserve levels in U.S. banks, Mortage lender bankruptcies(23 since Christmas) and over creation of currency can all lead to a mini crisis that will lead to wholescale worldwide economic panic. A U.S dollar crash will cause a world depression, flush many banks, mutal fund companies, insurance companies, etc out of existence, destroying 100s of billions in wealth.<BR/><BR/>Canadians have exposure to mutal funds and pension funds all with U.S. content. We have our money in Canadian banks that now have exposure to the U.S. housing bubble through recently bought U.S. subsiduaries. Canada depends on the U.S. market for 80% of our exports. When the U.S. Dollar implodes it's taking us with it.<BR/><BR/>Smart Canadians need to be prepared, debt free and have at least 5% of their net worth socked away in Phyical gold and silver bullion. <BR/><BR/>Have a look at one of my last posts and it's link to what a leading Canadian Banker has been telling his rich clients that the pheasant investors never hear.<BR/>http://canadiansilverbug.blogspot.com/2007/01/rbc-fiat-slap-down.htmlCarter Apps, dabbler of stuffhttps://www.blogger.com/profile/12537543127195801256noreply@blogger.com