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

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To: crustyoldprospector who wrote (80472)3/29/2007 1:08:17 PM
From: GST  Read Replies (3) of 110194
 
Iran does not want to suffer under a tedious and drawn out sanction regime -- and they are well aware that we can go on forever with sanctions as we are in no way inconvenienced by sanctions. ON the other hand, a confrontation that shuts down their oil and confounds oil supply from the region will screw us badly -- very, very badly. They are screwing themselves by doing this, but by doing this they will inflict severe pain and suffering and that counts for more than anything else in their view. I think they want to bring this to a head now. I think they smell our profound weakness and are prepared to pay a steep price to inflict a heavy price on us even as it costs them dearly.

To the extent that we go into a sharp economic downturn amidst high uncertainty, our economy will be hard hit by soaring inflation and economic stagnation. This will shake our system to its foundation as we struggle to pay for an endless war in Iraq while foreign creditors come to see us as a very risky place to finance our stratospheric deficits.
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