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

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To: russwinter who wrote (3198)12/11/2003 1:20:40 PM
From: Jim Willie CB  Read Replies (2) of 110194
 
bond players now place too much trust the Fed is in control
study of bond history reveals that the Fed has most often followed the short end of Trez bonds

all late in the 1990 decade, the Fed and Greenspasm lowered and hiked rates in order to match up to the 3month TBill yield

now bond investors seem to have forgotten what it means for the Fed to reflate
IT MEANS THEY PRODUCE PRICE INFLATION ON SYSTEMIC BASIS
we have seen early evidence with commodities, gold, energy

I was amused when a "political apologist" on the economy was interviewed on CNBC this morning
his name was Maury Something from some big house
I believe it was UBS, unsure

when asked by the anchor...
"are you concerned that commodity prices are rising, gold is rising, and energy prices are rising?
are these signals that we are seeing inflation enter the picture and longterm interest rates are soon to rise?"


his answer said volumes on economic stupidity
"no, these are signs of economic expansion and growing demand"


we are a nation of economic illiterates
in the public
in the investment community
in the govt
in the banking system

/ jim
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