Working Papers

An Offer Über Dollar Bears Cannot Refuse

David Henderson offers to ease the worries of US dollar bears:

please contact the publisher for my address and send me all of your bills with pictures of dead presidents on them, especially the ones with pictures of Ulysses S. Grant. (I will even accept the ones with pictures of Benjamin Franklin, although he was not a president.) In return, I will send you an equal weight of blank paper. I promise.

posted on 25 January 2009 by skirchner in Economics, Financial Markets

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The US monetary base is, however, apparently zooming up spectacularly.

Posted by Lorenzo  on  01/26  at  01:31 AM

Lorenzo, that chart represents the sheer desperation of the Fed to unfreeze the economy.

I’m not in the USD-is-toast and hyperinflation-is-coming camp.  My view is so much money has been sucked out of the economy by the withdrawal of credit, no amount of “quantitative easing” will ward off deflation.

The USD and Yen will continue to be safe havens for a while yet.

Posted by .(JavaScript must be enabled to view this email address)  on  01/26  at  04:38 PM

Robert Lucas appears to agree with you.

Come to that, so do the foreign exchange markets.

Posted by Lorenzo  on  01/26  at  10:47 PM

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