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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: mishedlo who wrote (74808)12/5/2006 5:12:55 AM
From: Mike Johnston  Read Replies (5) of 110194
 
You don't have to answer any of my questions, i already know what is going on. As a matter of fact, this is the only way that current relationships between the economy and different markets can be explained (they cannot be explained by conventional economic analysis )

1. Money supply growth in the US is running anywhere between 10-20% a year. Consumer inflation is running at 8-10%, poised to accelerate.

2. The Fed has already gone unconventional, having started bond market monetization in order to support housing. Money supply growth should hit 20-25% next year because of that.

3. No economic statistic and no number can be trusted anymore.

4. The Fed has/is injecting cash into Fannie Mae. That is why risk has vanished overnight, stock is rising and no reports are being filed.

5. Stock market is rising because the measuring unit, in which stocks are denominated, the dollar, is losing value quickly.

6. All around, there is a flight from money that is slowly gathering steam, with people frantically searching for a vehicle that will increase in price the fastest.

Bottom line is that money is being printed at a rapid clip. With money growth at 10-20% combined with 4% interest rates, hyperinflation is a guaranteed outcome.
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