"Dragon at the Back Door" (new article)
by Jim Willie CB
www.GoldenJackass.com
September 30, 2003
financialsense.com
an excerpt:
Phase #2 is when the real damage is done, when severely harmful effects are felt inside the US Economy, when the press & media are awakened from slumber, when the public outcry for government action is called for, when job loss accelerates, and when dim-witted (but politically favorable) official financial and executive decisions are made. In this more dangerous phase, watch for the USDollar and USTBonds to decline together, unlike in the initial phase. The dragon is at the back door, but few have noticed.
The primary characteristics of the damaging phase #2 will be many :
A) IMPORTED ASIAN PRODUCT PRICE INFLATION EFFECT
B) RISKS DUE TO ASIAN DEPENDENCE UPON CAPITAL AND MFG
C) ASIAN CENTRAL BANK RESERVE HEDGING RESPONSE
D) LAGGED FEDERAL RESERVE MONETARY EFFECT ON PRICE LEVELS
E) INCIPIENT TWO-SIDED PRICE INFLATION THREAT TO USTBONDS
F) LIKELY ERRORS WITHIN FED RESPONSE, DESPERATION SETS IN
G) MULTIPLICITY OF POSITIVE EFFECTS ON GOLD
I think this is a very timely piece
damn, wait a minute, it's me, I need a piece...
/ jim |
