Deflationary shocks will mark the new future of western economies

Is a run on the Federalreserve about to happen?
Even Bernanke is limited in printing Dollars, if nobody wants them!
What is about to happen is a drastic drop in US valuations and this either comes as currency devaluation or it comes in form of deleveraging and forced liquidations in the stock markets.

Both together, fiscal and monetary stimulus have caused an enthusiasm in stocks and asset prices over the last three years, which now starts to vanish and make place for reality. That is the reason why Kenneth Roggoff stated recently that the government needs to allow for inflation. If this would be so easy as it is said, then Japan would eventually have done it. But how to do this in a faltering economy remains the big question for many economists. So far they call Japan an "exeption of the rule" as it does not fit within their outdated therories and models.

http://www.berninger.de/crisis-analysis-opinion/datum/2010/08/13/bernankes-big-draw-down.html

There will be blood
Most likely we are going to see a crash in US equities within the next three weeks as a reaction to negative sentiment markets could then turn rapidly negative and eventually break through 2008 lows. That would give potential for circuit breakers and eventual sudden stops.
http://www.berninger.de/crisis-analysis-opinion/datum/2010/08/17/mi-report-week-33.html

Deflationary shocks will mark the new future of western economies

As souvereigns can no longer bail out the system with borrowing, it is clear that the end of a currency life cycle is closing in.

1.The EU most likely prepares for Greece insolvency
2.A haircut to greek bonds will be required in this case. Most likely is Greece to leave the Eurozone and the best option then would be to lower Greek interest rates to zero or to denote Greek Euro denoted debt in the new currency.
3.A deflationary shock is ahead, most likely starting in the US markets.
4.Commodities seem to be the best capital preservation option, but the downside risks are enormous as forced liquidation will most likely kick in in this case.
5.Currencies are risky assets as souvereigns all over the world have strechd the debt game to far.
6.China is decoupling and does not require exports to sustain growth
7.Tradig lessons learned: DO NOT BUY ANYTHING WHICH HAS an AAA rating!

Timing: I usually do not listen to Cramer who stated that the EU will go down the next 48 hours, or never. This is more or less correct. The next targets on the plate of speculators are Spain and the UK. Both getting under attack. Six months is the timeframe which should cover the coming events such as bond auctions and the Greek debt negotiation as well as the commercial real-estate bubble burst in the US.

(keep in mind this is not finacial advise, but rather an observation for discussion)
http://www.berninger.de/crisis-analysis-opinion/datum/2010/05/21/predictions-on-the-next-six-months.html