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

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From: russwinter6/27/2005 7:53:57 AM
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Conundrum explained?

prudentbear.com

and, the lie of low inflation:

financialsense.com

TEN REASONS FOR HYPERINFLATION

Global oil production will peak between 2005-2008. Economic growth ceases to exist as global economies and markets are thrown into chaos and turmoil.

The War on Terror escalates into a resource war over oil pitting the great powers the US, China, and Russia in a replay of “The Great Game.”

Debt creation and monetization hyperinflates as the government’s deficit spirals out of control with a war and a depression.

Foreigners begin to bail out of the dollar setting off a dollar crash.

The US puts in place capital controls to corral US and domestic money. The War on Terror will be given as the reason.

The government takes over GSEs owning most American mortgages.

A national mortgage bailout bill is passed lengthening mortgage payments in an effort to forestall debt defaults. A new restructuring agency will be set up to repurchase impaired mortgages from the banking system and renegotiate terms of the debt to avoid default. The 100-year mortgage is born.

A national retirement security act is passed forcing private pensions to buy long-dated zero-coupon government bonds that will be inflated away. The reason given will be for plan protection against bear markets.

As the US economy goes into a hyperinflationary depression the rest of the world’s economies follow suit. Money printing on a grand scale occurs in western and Asian economies as governments wrestle and try to satisfy the demands of a social welfare state and an angry, aging populace.

As governments hyperinflate and debase their currencies, gold will take on its true role as money rising in value against all currencies. The world will move towards a global currency backed by gold.

MY ARGUMENTS FOR DEFLATION:

Elimination of the Federal Reserve
Gold backing of the U.S. dollar
Honesty returns as a virtue in Washington
World peace
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