has the us lost control?, page-41

i also agree to disagree on this one, however i fully agree with your statement about australian home prices, they are also too expensive and like America, it is a bubble and they must come down

BUT

Aus actually have the ability to rise interest rates significantly, to combat this problem, and that they will, int rates need to be 15%++ for home prices to again become affordable for the average aussie

i would like to pick a piece from your post and elaborate

"but what effect will printing more money have?"

you asked this regarding America, implying a simple way to remove the trillions of dollars of debt the USA have with little effect??

i couldnt disagree more with this quote...

printing money devalues a currency by diluting it. So, if bernanke decides to print 1 trillion dollars to pay off debt this will sig devalue the US dollar because there are now loads more in the market, which reduces the purchasing power

basically, IMO, the bottom line is, USA must raise interest rates fast, to 10 % by 2010 end, let all the financial inst fail and banks that cannot cope with these interest rates and all the businesses that spent up too big in the boom. Convert these employed people into manufacturing jobs to help pay off the huge debts they are in

OR

continue to borrow and print money and eventually, the USA will move into a hyper inflationary depression, where the value of the dollar will become worthless (or about $20) and no longer the reserve currency