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

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To: Proud Deplorable who wrote (63248)6/10/2006 2:41:56 AM
From: shades  Read Replies (1) of 110194
 
The cost of money now compared to the size of the Bernanke Helicopter Drop of international liquidity means that rates will have to exceed the level of 1980 in order to have any impact.

Cowrie shells spiked up in times past too - as did tulips. Zimbabwe is paying hundreds of percent:
rbz.co.zw
INTEREST RATES 07/06/06
Overnight 850.00%
Interbank 726.54%
Call -
TB 500.00%

The case has been made that since the debt left our borders through derivatives and such that the fed really can't change much no matter how much they fiddle with the interest rates - you don't agree with that assessment? You still think they are in control and not the people that hold the debt? Perhaps they raise rates to 10 or 20% - if the world chooses to dump the US dollar and stop trading with us for green paper and IOU's from loyd and harry what does it matter how high the interest rates go? Bernanke can hike and hike and hike. hehe Still I expect to be able to trade my green paper for a big mac for a long while yet.
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