Well, I think money will be printed to stall any uptick in
interest rates now, but I may be wrong. The victim is the
dollar. Nothing changed in the US policy. Folks are just
seeing high gas prices, so they are now starting to get it
- there is inflation, regardless of BLS statistics. But
the country can't afford higher rates now. I guess accidents
happen, but fresh money is being dropped from helicopters
on everything. More money, less value?
LT rates show some signs of stabilization now. Greenie is
not gonna raise, and the bond market gets on the back of
the carry trade, yet again! There is little risk, since
this market is not free - it's fixed by the Fed. At least,
at the low end! This is one big mess. I think of
hyperinflation as a possible outcome as well, unfortunately.
Our worst fears have never materialized. So? Here we go
again, stagflation. The best environment.... for GOLD!
And, the best way out of this mess for the US of A(IMHO).
Drop the buck a bit, and the bubble never happened -g- |
