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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: glenn_a who wrote (990)9/24/2003 10:38:13 AM
From: Silver Super Bull  Read Replies (2) of 110194
 
Glenn,

RE: "My belief is that the Fed WILL stop the printing presses"

Could you elaborate? What would cause them to do this? From the various statements they have made (especially Bernanke's famous "printing press" quote) "stopping the presses" doesn't seem to be the collective mindset.

Also, per my earlier posts, the financial system has become highly accustomed to monetary/credit creation...it is very hard for me to envision how the financial system would painlessly adapt to any lessening of monetary/credit creation without serious negative ramifications.

As JW just pointed out, it is taking more dollars of debt to create one dollar of GDP growth. And that assumes that you take the "GDP growth" figures at face value.

DB
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