Mish's Global Economic Trend Analysis Message Board

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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: KyrosL who wrote (61100)	12/27/2006 11:15:26 AM
From: Haim R. Branisteanu	Read Replies (4) of 116555

KyrosL, what is happening is confetti printing - called today money. No matter how they do it "But in our world of today these dollars are being sterilized: the central bank of China prints the Yuan to give ?to the company and takes the dollars and buys U.S. securities." The point of printing money is very obvious reflected in commodity prices more so the renewable commodities where there is no justification of them rising well above the rate of inflation. Industrialized inflation - e.g. widgets manufactured are trending down (most obvious computer chips) - but anything else is trending up. Food shelter healthcare energy cost education and entertainment are sharply up. The prices of the renewable commodities barely went up if compared to metals, crude oil or similar commodities and the old “Gold Standard” but in paper money there was substantial appreciation. What has happened is very simple – governments decoupled themselves from the Gold Standard in hope to fool the electorate – it worked for several years then it started stuttering – solution change the way you calculate the CPI which was done under Clinton – success in this new trick generated the DOT COM bubble after the blast AG went on to generate the housing bubble which proved that the king has no clothes and commodity prices start rising as did gold – the looser were the savers and pension funds whose saving are partiali confiscated on a daily basis by their respective governments and o course the WS types and other financial alchemists. This is also the reason why so many pension funds around the world including social security are underfunded – there is a silent legal robbery going on thanks to our governments.

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