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

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To: westpacific who wrote (49530)1/12/2006 4:45:57 AM
From: Mike Johnston  Read Replies (1) of 110194
 
It is a shame, that this country has been put in a debtor position, that now its future depends on what foreigners do or not do.

And a potential China-Russia-Iran alliance scares me much, much more than any deflationary/inflationary collapse one might imagine.

The establishment is gloating about all the new "wealth" that has been created by the housing boom while the truth is, while it stimulates consumption in the short run and mints a few multi millionaires, it impoverishes the US population in the long run and enriches the Chinese(manufacturing) and Russians(oil).

Could Russia and China be behind recent runup in gold ? Well, from the economic standpoint, it would be silly for the Chinese not to buy gold. But if they are doing it because of geopolitics ? Then, this gold advance begins to look scary as opposed to necessary.
I think that it is gold that some day will deliver fatal blow to the Fed.

Could it be that the whole thing about having the statistics look good and keeping the markets inflated, has to do with the fact that we are at war ?

The analysis gets mighty difficult if geopolitics invades economics and vice versa.

It is a mess.
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