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Strategies & Market Trends : The coming US dollar crisis

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To: John Vosilla who wrote (6768)5/2/2008 11:28:45 AM
From: Real Man  Read Replies (2) of 71442
 
We ARE in a currency crisis. Some wicked breed of blowing
asset bubbles and credit inflation (still!) with some asset
bubbles popping, and wild manipulation centered around the
"useful" bubbles in stocks and especially government bonds.
World wide crack up boom due to low interest
rates is very real. Commodities are driven by acute shortages,
which obviously has nothing to do with speculators in the
futures. Countries are hoarding oil, folks are hoarding food
because prices keep rising.

Mish "could" be right, but ONLY if the Fed chose a policy
of stable currency. The Fed is choosing an alternative scenario,
so far - trying to keep asset bubbles and associated credit
inflation alive at ANY cost, causing crack up boom in commodities
in the process. Credit IS money. M3 is going to da moon.

The pop will involve much lower dollar, much higher commodities,
soaring interest rates, and popping stock bubble (Best case
scenario) or hyperinflation, as all the blown up debt shifts
to the government, which then monetizes it (worst case scenario)
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