Mish's Global Economic Trend Analysis Message Board

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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Crimson Ghost who wrote (1995)	3/14/2004 2:10:24 PM
From: mishedlo	Read Replies (2) of 116555

But he comes down firmly on the inflation side. He argues (correctly I think) that no matter how large the debt burden, the Fed will monetize enough of it to prevent any deflationary collapse even at the price of a full scale dollar route. If they keep on monetizing it..... Treasuries will do well. They havent even needed to yet! By the time we get there IF they get there, the 30 yr will be in the 3's. The only way debt does not collapse in a heaping mess is if wages go up enough to pay it off, the US govt defaults, or the US govt gives money to individuals to pay off debts. Number 2 could happen but not for a long time, number three would screw big business and that is not likely, and wages sure are not going up under any circumastances that I can see. Thus, I maintain Saville is wrong. If he is right think of the omplications to treasuries and eurodollars. I WIN in either case IMO. mish

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