Anyone willing to bet on a devaluation of the dollar when all the debt bubbles burst?

[Kinser79]

(05-20-2016, 10:49 PM)Galen Wrote: There is one simple question:  Will the Fed governors ever accept that Keynesian economics does not work? 

I'm willing to bet the answer is no. The Fed only has two leavers it can work economically, the interest rates and money printing. The interest rate is already at its minimum. That leaves money printing.

Quote: If they accept this possibility then a deflationary period is likely followed by a long period of growth.  If not then the US gets to look like Venezuela or Zimbabwe.

I'd definitely agree should the Dollar lose reserve status. The question is then what conditions have to be met for the Dollar to lose that status. With the USD holding reserve status inflation can be exported. That is one of major reasons why Argentina, Venezuela, Zimbabwe and other less developed countries have recurring bouts of chronic inflation and hyperinflation.

 

Quote:One thing that you can count on is the economic predictions made by the Fed are the exact opposite of what will happen.  They have a lousy prediction record.  Even worse than Eric the Obtuse, which is quite a feat given how clueless he is.

It isn't just the Fed. Typically I listen to the talking heads on CNBC and other such news outlets in regard to my investments (as small as they are) and typically do the exact opposite of what they say to do. I've not gone broke by counting on the so-called experts to be wrong.

I especially pull out when people start talking about "X" can only go up in value, because that indicates a bubble mentality has set in and it is a good idea to get out before prices crash.