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

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To: benwood who wrote (50534)1/20/2006 7:14:19 PM
From: mishedlo  Read Replies (1) of 110194
 
Benwood that was an excellent post.
Thank you.
It is 100% accurate.

That is the problem in attempting to control prices by FED policy. They can control money but they can not dictate where it will go. They thought they would create jobs, well they did, in two places: China and Housing. The former causing huge deflationary pressures, the latter created a bubble in housing and credit lending (inflationary but only as long as it can continue).

The root problem: monetary debasement.
Oddly enough if there was not "monetary inflation" there would be no perceived "US$ bubble".

Which came first: "inflation" or "the US$ bubble"?

Mish
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