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

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To: gregor_us who wrote (13208)5/4/2004 11:40:46 PM
From: Jim Willie CB  Read Replies (1) of 110194
 
if economy looks vulnerable to higher rates later on
then falling dollar will take bonds down hard with it
then beware of the unwinding of bond leverage apparatus

as long as we seem like economy CAN HANDLE higher borrowing costs, offsetting them with stronger profits, then falling dollar will NOT hit bonds and amplify the losses
if economy CAN HANDLE higher rates, then Asian central banks will soften the bond blows, just like the past several months
you know, overnight intervention with rescue packages

that is why I believe only next year will bonds and dollar go down together in earnest

only then will gold take off
unsure when of course, but later this year or early next year

there is no denying the USEcon is more robust now
powered by financial sector and inflation, which is an amphetamine which will wear off

/ jim
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