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

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To: Skeeter Bug who wrote (108809)6/27/2010 10:27:36 AM
From: Hawkmoon1 Recommendation  Read Replies (1) of 110194
 
I think there is a good chance we see more of the same (economy deflates, government inflates essentially equaling out) until we get a rapid *collapse* of the system.

If we REALLY BELIEVE that the global economy is utterly controlled by a cabal of bankers and financial illuminati, why would they want to further inflate a credit bubble that is reaching capacity (look at CDS rates on sovereign debt)??

It stands to reason that they would want to buy CDS (gradually) and DEFLATE assets from current levels, foreclose on those assets (since CDS holders have priority in Bankruptcy now), and THEN INFLATE the economy again and see those assets reap a windfall for them.

That's how I would play the game, were I part of the illuminati.. ;0)

But deflation takes time.. First you have to stifle demand by creating massive unemployment and economic uncertainty.

Hawk
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