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

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To: russwinter who wrote (66680)	7/22/2006 2:05:05 PM
From: bond_bubble	Read Replies (1) of 110194

I meant Chindian Government spending. Not the private investment in leather factory or in apartment complex. I'm talking about Hoover dam, Tennesse valley project equivalents which were carried by US Federal Govt. Why wont China create these massive projects? Those projects will consume huge amount of resources right? And it will be carried until the govt has the "reserves" are spent.... Doug Noland was talking about this in his earlier article right? So, there is going to be massive investment in energy, raw materials in both US and abroad so that Chindian govt can consume it and US can build the manufacturing base in US etc... I would say this Govt spending will easily replace BullyWannabe and BA consumption... Afterall, security and stability is more important to Chindia - hence these projects will be carried out. Especially, if the Chindian Central banks see the dollar debasement and US Consumption retrenchment, they would try to buy the resources and get rid reserve dollar holding. This is why I think, interest rate goes up... And inflation does not fall until deflation is allowed to take hold.

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