Friday, October 10, 2008

Jesse on Treasuries and the Dollar

Jesse at Jesse's Cafe Americain has a 30 September 2008 post that echoes what I've said for months. Jesse writes, "At some point the contrived demand for Treasuries will subside, and the bubble in US debt and the dollar will deflate, not in a monetary deflation which is the fantasy of so many, but in a shocking devaluation of the dollar and a collapse in Treasuries. ... What we are avoiding is the downsizing of a financial sector that is still remarkably oversized, and a capital allocation system that is an unsustainable mutation of a free market. ... This is what our bankers do; keep borrowing until you become their problem, and they finally own you by 'default.' This is the blackmail under which the US public is being held today". Here's a link:

Here's where I expressed similar sentiments:

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