17-Mar-13 World View -- Cyprus bailout threatens bank runs

[John]

17-Mar-13 World View -- Cyprus bailout threatens international bank runs


Will politicians convince everyone that there's no worry?

** 17-Mar-13 World View -- Cyprus bailout threatens international bank runs
** http://www.generationaldynamics.com/cgi ... 17#e130317



Keys:
Generational Dynamics, Cyprus

[vincecate]

Could the same thing happen in the United States? Think back over the last six years, and think about all the "things that could never happen here" that now have happened. And we have a President whose announced intention last week is to spend as many trillions of dollars as he can.

Cyprus uses the Euro. They can not just print money to pay off depositors. The US can print money to pay off depositors. The inflation tax is a sneaky way to take from many people. Politics is dirty business. The US will print money again and again, till it all falls apart.

How can I be so sure? If the US dollar is strong then the US can fix any problem by printing trillions and importing whatever is needed from the rest of the world. The US can not be poor as long as they can print money and the rest of the world accepts it. The only way the US can ever have it really hard is if the US dollar stops being the world reserve currency. It will happen, it is just a question of when.