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

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To: Real Man who wrote (3329)12/18/2003 2:14:45 PM
From: Jim Willie CB  Read Replies (2) of 110194
 
debt collapse is strong description
instead, I expect debt accumulation to slow until it causes problems
then afterwards, unsure

I expect Fed Monetization to ramp up and cause problems
for the USDollar

very interesting M3 chart
this is Greenspasm's greatest challenge
as soon as the credit and money printing engines slow,
the US Economy collapses under the weight of debt, foreign dependence of both capital and commodities, and extreme tilt toward insane consumption

so far all indications are for a full sacrifice of the USDollar
complete with rationalization that it aids our exporters

two problems with this view:
1. our export prices are rising faster than import prices, a certainly curious phenomenon, as commodity prices, energy costs, and imported components from Japan rise in price

2. if all our mfrs tripled exports, it would not make a dent on the trade gap, since we have forfeited our mfg base to Asia and Mexico and a host of other nations

EVENTUALLY THE USDOLLAR DECLINE BECOMES A MAJOR HEADACHE
IT WILL IN TIME TOTALLY SCREW THE BOND MARKET

/ jim
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