Submitted by centsless, Mar 28, 2007 20:29

It's hard to believe that the dollar would lose supremacy of fiat currencys. But depreciate it can. It seems that the world is awash in paper money backed by lots of imbalances and debt or future obligations. And much being accumulated in a small percent of the global population. China - 1 trillion japan -900 billion russia - 400 billion etc.... I wonder what kind of compounded interest would add up to on a trillion dollars in 5 years. Things like this can not be allowed in a global economy to be balanced. What brings us to uncharted territory is when the market corrects the imbalance. I can't count past trillions but I hope it doesn't get that far. My guess is China will burst the liquidity bubble perhaps under protectionist pressure from Europe or US. How many trillions can one entity accumulate until enough is enough. If they cared about their people they should send each a check like Bush did. Sure there will probably be alot of inflation but there will be inflation anyway on a more grand scale left alone. They can afford it Bush couldn't. People will realize the abuse of central govt's money supply and manipulation and lose faith as stagflation picks up steam. Where that could lead only history can tell.

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