wahz,
excellent discussion!
Let me point out that an instant devaluation has very little possibility of coming to pass for two reasons:
1) The rest of the world would oppose it big time, as it would drag them into a monster recession.
2) It would benefit the huge number of people who refinanced their homes. (and took money out) We know that the game is rigged to benefit the powers that be, and not the little guy. ---BTW: This is the main reason that makes me think that the "next thing" is a recession, not inflation.
(Some say the world will end in fire, some say in ice... <g>)
H.
(My personal opinion is that the Fed has no politically feasible exit plan, and that they will try to maintain the status quo at all costs until some "catastrophic event" forces their hand.)
