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

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To: mishedlo who wrote (50183)1/19/2006 2:28:01 AM
From: TimbaBear  Read Replies (2) of 110194
 
No matter how hard you twist and turn you simply can not get around falling wages and rising unemployment.

And no matter how much you twist and turn, you can't get around the consequences of a currency in freefall.

How much did a loaf of bread cost in the Weimar Republic? Didn't Germany grow its own food too?

You are trying to fit the classic slow wages equals deflation into the prediction for the US future and ignore the sea change going on with the world's reserve currency being recklessly maintained. Do so at your own peril.

Your forecast may be the one that pans out, but it may not be. I am at least willing to give equal weighting to both scenarios. I see no proof that your scenario is unfolding and I see no deflation in the things I use every day. I see plenty of proof of inflation.

You have a good story, but don't bet the farm on it. The markets don't treat kindly those who are rigid in their thinking.

I've been placing my money into those commodities I thought most likely to benefit from the scenario I outline and have been greatly rewarded for having done so. What deflation plays have worked for you personally?

Timba
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