Quote:
Originally Posted by Coatsy
What will happen when it reaches it's max?
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Would think a credit crunch will start Coatsy (tho it appears this has already started). Only my
- it may be the start of the "cure", but probably going to have fairly severe effects - and may not actually help the situation. (Eg less money floating in the hands of the public and govt - and that can ripple thru to suspension/cancellation of projects, hits on the retail industry, further mortgage problems and an increase in unemployment etc).
The signs of this are continuing - almost on a daily basis eg - in the last 24 hours one finance operation just admitted a drop in their asset value to the tune of $8 billion (probably prudent to say now cos they are most likely going to lose more in the future.)
China is obviously a major "banker" and not sure you may have noticed - they are playing smarty pants with their dollar holdings. They already dumped around $60-80 billion recently, but - kinda smart move - they are "giving away" dollars to other countries for specific projects - all with a view to enhancing trading relationships - $50mill here, $150mill there etc. It's one way of avoiding damage to the dollar by just dumping dollar assets, plus getting a positive benefit in return.
A credit crunch would prob pressure the Fed to print more fantasy dollars and keep liquidity in banks (they dumped around $80-90billion a few weeks back to keep the banks afloat and liquid) while the dollar will continue to depreciate - and until confidence drops thru the floor. It always seems to take longer for the shit to hit the wall, but the writing is already there.
From your angle in the UK - it would not be a surprise to be selling monthly paysite memberships for 9.95 GBP (dollar equivalent) soon - and getting the an awesome 5 GBP for your efforts. At least it might just buy a packet of cigarettes
Can see more adult transactions being done in Euros or a more stable currency - the companies already doing this have a positive future. The "nice price" marketing will go out the window, but this would be universally beneficial to both international webmasters and those in the US. Don't think either of us are going to bother getting out of bed to work for dollars soon
