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

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To: mishedlo who wrote (38166)8/9/2005 9:13:00 PM
From: Fiscally Conservative  Read Replies (2) of 110194
 
Good evening mishedlo,

Your points here are well taken by me. It is an interest for me to contemplate just where we are heading.

" I have explained many times how the US$ can drop and prices drop and the answer is simple: overcapacity in conjunction with demand dropping faster than the US$ drops."

Overcapacity should be a short term situation,imo,if that is what is witnessed eventually. The by product of over capacity is a shrinkage on the manufacturing supply side and then the eventual drain on much needed cash flow thereby creating a greater hardship on debt payments(especially on a rising tide in the Fed Funds Rate). How all this effects the $ I am still in the dark.
I believe the Dollar is constantly manipulated by forces outside our domestic borders. Todays markets,in an ever increasing global landscape,are greatly influenced by the currencys they interact with. Buffet is no fool,but I have to wonder exactly just where he is placing he bets now.

Where I hang my hat I see inflation and it is just beginning.

This is just my opinion and appreciate all rebuttals.
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