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

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To: russwinter who wrote (4738)1/10/2004 10:26:38 PM
From: Crimson Ghost  Read Replies (1) of 110194
 
The Fed will indeed keep rates low (but low does not necessarily mean 1%) as long as it can. But their ability to do depends on Asian CBs continuing to purchase truckloads of dollars day and night in an endless spiral. If the Asians were to cease and desist or even just reduce the number of truckloads, the dollar would plunge, US inflation and bond yields would skyrocket and Greenspan would be FORCED to hike short rates sharply or risk double-digit inflation and the collapse of the financial system as we know it.
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