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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 389.05+0.4%Dec 10 4:00 PM EST

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To: carranza2 who wrote (108958)12/15/2014 7:07:48 AM
From: THE ANT  Read Replies (3) of 218360
 
It would be complicated to hold up the price of oil in the US but I look at this as Warren Mosler moslereconomics.com does, the Saudis are knocking out competition and in 5 years prices will increase with a vengeance
In regards to interest rates I think the Fed, out of luck, got it right and dropped interest rates prior to the market crashing low enough to drive them down to the same level.I think an interest rate of zero will be too high shortly. When a debt based economy reaches debt to GDP of these levels you can only get inflation after wiping out the debt, and if that happened there would no longer be any need to inflate. At this point to cause inflation it would take massive government spending-running a huge deficit-and this would cause an implosion of bond prices and deflation. Now what if the government owned all the debt of the country prior to starting huge deficit spending? Not sure but I don't expect this. I think we eventually get deflation making real rates positive and go down Japans route. Remember we are just giving up growth that was never ours in the first place.If we can stretch thing out enough, the growth in productivity can counter act the fall in GDP from de leveraging. Low GDP as far as the eye can see and low asset value growth too
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