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

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To: t2 who wrote (6725)2/2/2004 11:47:26 AM
From: Jim Willie CB   of 110194
 
I expect a fullblown USDollar Crisis in next two years
in fact, I have called for it since summer 2002
back then, I kept saying it would blossom in 2004-2005
and reach crisis proportions in Bushy's second term
everything is very much on track

huge federal deficits
huge trade gaps
low interest rates
Asian diversification
crude oil euro denomination
unchecked monetary expansion

TRADE FRICTION, PROTECTIONISM, RETALIATION...
these take us into the next stage of the crisis
no evidence of govt or Fed discipline lately
coming to a theater near you
yes, a fullblown USDollar Crisis

each downstep in the US$ leads to the next
there is no end, since all internal mechanisms are gone
the only thing holding up the US$ is international confidence
and that is fast eroding
watch the tone emerge from the G-7 Meeting in Florida
the USA is slowly losing its power for such Finance Minister Meetings
we are becoming the problem child

"Vicious Circles & the USDollar"
May 2003
321gold.com

/ jim
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