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Strategies & Market Trends : The coming US dollar crisis

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To: Pogeu Mahone who wrote (21569)7/28/2009 1:20:15 PM
From: Real Man  Read Replies (3) of 71426
 
Banana rallies are very difficult to play. They are like money
farts, with bubbles inflating in some places with little to
no correspondence to fundamentals, while elsewhere things lag.
Maybe to Goldman's desires. The market becomes the market
of "first receivers" (of the money from printing press) and
"non-receivers". So, things these first receivers buy go up
in price.

Copper prices stayed put in Weimar times according to Jesse's
charts, or collapsed in real terms, due to the economy
completely disintegrating. Stocks went up a bundle and provided
decent protection, again, in spite of the fact that the
economy was virtually absent.

Rent/housing costs were zero. Food soared in real terms so
high, most families spent all their income on food, which
means there was hunger.

As a line of thought, I am still looking at financials from
the long side as this inflation trade develops again.
Obviously, they are the "first receivers". If the current
trends continue, there will be no economy left but them.
Thus hyperinflation.
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